NCPA - National Center for Policy Analysis

Growth Of Medical Managed Care

October 25, 1995

Traditional "fee-for-service" medicine has given way to "managed care" providers, who typically try to hold down costs by reducing waste and emphasizing preventive medicine.

A study by KPMG Peat Marwick shows the proportion of workers who receive each type of health care coverage through company-provided insurance:

  • In 1988, 71% chose fee-for-service; 29% received managed care.
  • This year, only 30% opted for fee-for-service; and 70% went for managed care.

According to the Congressional Budget Office, only about 10% of Medicare recipients now receive managed care. But it is estimated that will grow to nearly 25% by 2002.

Source: Robert J. Samuelson, "Managed Care Revolution," Washington Post, October 25, 1995.


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