GAO skeptical on cost savings of managed care. (General Accounting Office, managed health care)

National Underwriter Property & Casualty-Risk & Benefits Management, October, 1993 by Fisher, Mary Jane

There is little hard proof that managed health care cuts employers' benefits costs, a General Accounting Office study has found. "Although many employers believe that, in principle, managed care plans save money, little empirical evidence exists on the cost savings of managed care," according to the GAO, the investigative arm of Congress.

"This study shows that managed care is not a cost-saving silver bullet," said Rep. Pete Stark, D-Calif., chairman of the House Ways and Means Health Subcommittee, who requested the GAO report. "Many health care reform proposals, including the President's, count on these plans for cost control," said Rep. Stark. "What savings there are come from enrolling healthy people rather than real cost innovation. Employers'...

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