Managed care Essay Example | Topics and Well Written Essays - 1500 words

Managed care - Essay Example The graphical representation below illustrates that in the year 2013, employer-sponsored health insurance has been registered at less than 1% of employees in traditional fee-for-service plans. In the recent years, high-deductible health plans have gained popularity wherein the share of managed care registration has declined proportionately. Additionally, it has been noted that traditional health insurance has been in the stage of extinction today. It has been also identified that High Deductible Health Plans paired with a saving option (HDHP/SO) has been included in the survey of health plans registration from the year 2008 (Kaiser Family Foundation, 2014). The health care service, i.e. managed care, has its origin in the United States, but the tools of managed care have spread on a global context. Identifiably, in most of the European countries, general practitioners are entitled with the task of regulating access of the specialists and have responsibilities over a per capita annual budget (Deom et al., 2010). In the United States, managed care has evolved as necessary principally because employers are facilitated with the opportunity of strengthening the health insurance premiums, as compared to the struggles faced by the employers in terms of unaffordable excesses due to the uncontrolled delivery of services. In the insurance system that has existed before the managed care, insurance companies are recognized to overlook the need for any incentive for managing different aspects that included service delivery and payments related to the same. In this respect, due to the lack of controls in factors such as over delivery and payment, it has been identified that the employers had to face the issue relating to costs. Subsequently, a system is needed to be developed with the aim of controlling excessive costs by integrating delivery as well as payment with functions