Managed Care

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As unemployment dropped below 4%, employers found it necessary to compete for employees, which required a comprehensive offering of group insurance plans contracted through MCOs. These collective elements led to an explosion of managed care enrollment through the 1990’s (see Exhibit 2)...
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Today’s managed care, post year 2000, is evolving. After years of prosperity, the industry is at a crossroads; as an example, the 2006 S&P Managed Care stock index declined (by 6.2%) for the first time in five years. Further complicating matters are soaring healthcare costs, which MCOs were originally designed to reduce...
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