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Maxim L. Pinkovskiy, MIT Economics
Dec. 21, 2012
"During the late 1990s, there was a substantial cultural, media and legal backlash against the cost-containment practices of managed care organizations (particularly, HMOs).... [T]he backlash had a strong effect on health care costs, and can statistically explain much of the rise in health spending as a share of U.S. GDP between 1993 and 2005 (amounting to 1% to 1.5% of GDP).... [The author concludes that] managed care was largely successful in keeping health care costs on a sustainable path relative to the size of the economy."
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