Managed Care Development - Essay Example

The managed care plan also has four key players i.e. purchasers, suppliers, insurers and providers. Under this system, most, purchasers and insurers are considered as payers, whereas suppliers and providers are considered as beneficiaries. This has created an immense conflict between these parties. The provider’s goal is to reduce health care reimbursement whereas the beneficiaries aim at maximizing their receipts. This has made health care costs become a battlefield among competing interests. This has made insurers charge high premiums to insured patients, to protect their profit. As a result of this competing interest, the cost of managed care organizations has abysmally failed in making the cost of accessing health services in America affordable.

Lastly, the majority of small employers are less likely to provide health insurance to their employees. This is due to the high price that is incurred when underwriting and administering policies for a small number of employees. This means that though the system has enormous benefits to patients, the majority of people are unable to obtain it due to the initial cost that has to be met before a person gets insured. This has largely contributed to high health costs despite the launch of managed care plans.