MEDICARE MANAGED CARE: Why Is It Coming?

The fear that managed care is making inroads into Medicare has struck a note of near panic in the minds of many American physicians. Making more options available to seniors, including many types of managed care plans, and reforming the way Medicare makes payments to such plans, however, may be moro attractive to physicians than the continued reliance on the direct control system that has been traditionally associated with Medicare. This article discusses the changing private sector, the present structure of Medicare, how plans are paid, what physicians tan expect in the near-term, and future fiscal pressures on Medicare.