Due to the escalation of healthcare costs, health insurance providers are coming up with ways to reduce costs. One of these ways is the adoption of managed care. Establishment of provider networks helps reduce healthcare costs. To fully become a member, specific quality standards have to be met at the same time coming to a consensus on pricing arrangement that lower the overall costs ( Wallack, 1991).  For instance agreeing on a fixed amount which the patient will be paying for either monthly or annually without additional costs whenever he visits the medical facility.

Utilization management is another way that keeps a lid on healthcare costs. Payers are given a chance to simply evaluate the needs and effectiveness of the care on a case-by-case basis before getting it ( Bailit & Sennet, 1991). Through this, unnecessary services are reduced and eliminated at the same time. In a nutshell there is an impact on not authorizing or limiting care that had been recommended by the provider thus reducing costs.

Managed care mainly focus on preventive care as a means of lowering healthcare costs. Medical checkups for various health hazards are encouraged for the identification of potential health complications (Sekhr, 2000). Through this, any health hazards are dealt with at the early stages thus preventing any advancement which would result to the escalation of treatment costs.

Managed care encourages their clients to be proactive by keeping healthy. This simply means healthcare is not diminished. Being proactive makes sure that the patients do not get to the point of their health deteriorating. Identification of any health hazards leads to preventive measures therefore mitigating the risks of any health hazards.

Payment rates are adequate which enables provision of admission to harmonized and operative care at the same time creating investments that back extra medical amenities. Adequate payment rates therefore makes sure that the managed care is not diminished as required efficient services are offered.

In conclusion, networks provided ensure that the availability and quality provided is effective by making sure that the number of healthcare providers is good enough to take care of the patients. This simply means that, desired results are achieved and all those enrolled to the service are taken care of without diminishing the quality of health.

References

Bailit, H. L., & Sennet, C. (1991). Utilization management as a cost containement strategy. Health Care Financing Review/1991 Annual Supplement, 1-7.

Wallack, S. S. (1991). Managed care: Practice, Pitfalls, and Potential. Health Care Financing Review/1991 Annual Supplement, 27-34.

Sekhr, N. K. (2000). Managed care: the US experience. World Health Organization, 1-15.

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Managed Care

Paper details
Discussion Topic: Managed Care
In what way does managed care actually manage cost? Does it do so without
diminishing the quality of care? If so, how does it accomplish this?
Use journals as references