Risks are high when managed-care companies cut and run
Managed care may be a trend in health care currently to try and curb Medicaid costs, but it can be a risky proposition as private insurers tend to promise cost savings for high-risk patients who are expensive to insure.
According to an article from the Washington Post:
As budgetary pressure rises, states are increasingly passing it on to private plans. Plans typically get a monthly sum to cover a patient’s health costs and try to save by cutting wasteful spending, such as an expensive emergency room visit when a family doctor would do. “There is a lot of waste in the system, but it’s not something that you just flip a switch and it all goes away,” said Steve Zaharuk, a Moody’s Investors Services analyst.
It is all too easy for managed-care companies to leave the program altogether if they’re unable to see enough of a profit. Risks are high; and when managed-care companies can’t meet what are oftentimes unrealistic promises, they tend to cut and run, leaving many patients struggling to find access to healthcare.