NCPA - National Center for Policy Analysis

Managed Health Care Increasing

September 6, 1995

Managed health care has grown rapidly in both the private and public sectors and in most geographic areas.

  • Combined total enrollment in health maintenance organizations (HMOs), which provide care on a prepaid basis, has more than tripled in the past decade to an estimated 56 million members in 1995.
  • About half the patients in HMOs are enrolled in independent practice associations, 24% in group-model HMOs, 18% in networks and 11% in staff-model HMOs.
  • Over the past decade, the public-sector population in managed care has doubled for federal employees (to 39%), Medicare beneficiaries (to 12%) and Medicaid recipients (to 7%).
  • Although enrollment in managed care plans has increased in both rural and urban areas, there is a wide geographic variation. Among the states, for example, enrollment ranges from 0% of the population to 35%, and in metropolitan areas, from less than 10% of the population to more than 50%.

Despite some physicians' concern about managed care, more than three-fourths have at least one managed care contract, and almost half are involved with at least one HMO.

Source: Marc L. Rivo, et al., "Managed Health Care: Implications for the Physician Workforce and Medical Education," Journal of the American Medical Association, Vol. 274, No. 9, September 6, 1995.


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