Cost-conscious managed health care

Health care is managed professionally in some countries, such as the USA, with the aim that health care costs be fully recovered from clients, and that there be profit for the health care management. Prior to 1997, in order to combat rising health care costs (10.1% per annum), health care insurers restricted the rights of doctors to prescribe expensive tests and to determine the length of hospital stay required for their patients. Health care benefits stopped rising so fast; in 1996 the rate was 2.5% per annum.

However, patients complained about the inadequate care, and in 1997, state legislatures began to pass laws requiring the insurance companies to defer to doctors in the prescription of medical care.

In the USA in 1996, 77% of all employees at 49% of all businesses with more than 10 employees are covered by managed health care plans.