Question

What are the primary cost-saving features of managed
care?

Answer 1

The primary cost-saving features of managed care include a cap on administrative costs, the switch to electronic medical records (EMRs), and controlled reimbursement.

Step-by-step explanation:

The primary cost-saving features of managed care include:

1. Cap on administrative costs: The Affordable Care Act (ACA) introduced regulations that limit the amount healthcare providers can spend on administrative costs. This helps to control healthcare expenses and reduce unnecessary administrative expenses.
2. Switch to electronic medical records (EMRs): Managed care requires healthcare providers to transition from paper-based records to electronic medical records. This shift reduces administrative costs associated with paperwork, filing, and storage.
3. Controlled reimbursement: In managed care, healthcare providers receive reimbursement based on the number of patients they handle, rather than the cost of services provided. This incentivizes providers to allocate resources efficiently, optimizing cost savings.