History of Managed Health Care

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| History Of Managed Health Care In The United States | Medical Insurance | Professor SpeedTuesday AM | Autumn Brooks | | | While I have only briefly been studying Medical Insurance, I have been made aware of many legislations and laws that have moved our Managed Health Care towards a more proactive future. Whereas the first Medical Insurance started in 1860 with the Franklin Health Assurance Company of Massachusetts; Managed Health Care was not put into action until 1973 with the Health Maintenance Organization Assistance Act. This set the foundation for offering primary care for our Nation by replacing fee-for-service plans with more affordable quality care, as well as allowing the consumer to control their own healthcare costs. (Green & Rowell) “The Health Maintenance Organization Act of 1973 (P.L. 93-222), signed by President Nixon on December 29, 1973, is the first major health legislation enacted by the 93d Congress. The new measure commits the Federal Government to a limited, trial-period support of the development of health maintenance organizations (HMO’s). Its major purpose is to stimulate interest by consumers and providers in the HMO concept and to make health care delivery under this form available and accessible in the health care market”. (http://www.ssa.gov/policy/docs/ssb/v37n3/v37n3p35.pdf) The Health Maintenance Organization Assistance Act of 1973 defined a federally qualified HMO, authorized grants and loans to develop HMOs under private sponsorship, as well as required most employers with more than twenty-five employees to offer HMO coverage if local plans were available. (Green & Rowell) Following the Health Maintenance Organization Assistance Act of 1973 was the Employee Retirement Income Security Act of 1974 (ERISA). This legislation mandated disclosure requirements for group life and health plans, permitted large

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