The Status and Future of HMOs

The Status and Future of HMOs


The movement for health maintenance organization’s (HMOs) began in 1984. At the beginning of the 1990s, there were nearly 600 HMOs across America and they were regarded as a practical alternative to escalating medical costs. By 1998, it was clear that HMOs were out of control. How could something, which started out to help high costs, gone so terribly wrong? In a survey conducted by Harvard University in conjunction with the Kaiser Family foundation, it was revealed that 51 percent of Americans polled believe that HMOs are responsible for the deteriorating quality of their health care. Fifty-five percent expressed concern that HMOs were more preoccupied with cost-cutting measures than with providing the best possible medical care for the patients they serve (The HMOs Image Problem; Public Distrust Can be Cured By Ensuring Patient Rights).
It should be known that, HMOs are not public service organizations. HMOs are in business to make money, and the more people they can enroll, the greater the profit. When the general public or their employers go shopping for a health care alternative, they are often unaware that they may become victims of dishonest marketing campaigns on the part of the HMOs. One friendly brochure, as quoted in Consumers' Research Magazine, read, No Medicare deductibles, affordable co-payments, and unlimited hospital stays when medically necessary. Emergency care anywhere in the world. Virtually no claim forms to file routine physical exams (preventive health services).

                                                                                                                         
Prescription drug discounts, dental coverage, vision coverage (THIA). Language in HMO plans is purposely vague and is intentionally subject to broad interpretation. The flyers frequently mention unlimited hospital stays, but never clearly define what these stays are for (THIA). Then, of course, there is also the...