HCM Discussion 4: Cost - Containment Programs Research Assignment

HCM Discussion 4: Cost-containment programs
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What cost-containment programs or approaches have been used by the health insurance industry in the last two decades? What are the similarities and differences in how these programs use deductibles and cost-sharing options?

One of the challenges in costs containment strategies in the health insurance industry is that it is highly concentrated, making it difficult for the smaller players to implement effect cost containment strategies. Health care costs in the US are also high because of the cost of drugs and high out of pocket payments. Accountable care organizations (ACO) operate when the healthcare providers, doctors and hospitals work together to address the cost, quality and patient outcomes. Coordinating care services has been crucial to cost containment, but laws differ from state to state, but the main benefit is that there are shared savings (Commonwealth fund.org, 2015).
Another of the options is copayments and coinsurance, where the patients pay a fixed amount when they visit health centers and insurance. The co-insurance pay a share of the amount under the employer based coverage. The case for this option is that providers are better placed to monitor costs, and in the case of employer-based coverage. The preferred provider organiza...