Health Maintenance Organizations In The Late 1800s

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Health maintenance organizations have been in existence since the late 1800s. The government began to encourage the development of HMOs in the 1950s. The Health Maintenance Organization Act was enacted in 1973 and in 1978 a Congressional amendment increased federal aid for HMO development. In the 1990s 95% of private insurance companies used some form of managed care and was incorporated into Medicare and Medicaid plans. The primary intent of managed care is to reduce health care costs. Preventive care and early intervention is the emphasis of managed care. “Many critics believe that the managed care organizations will not continue in their current state.” The quality of services needs to take precedence over cost and efficiency to improve

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