By 1993, over 70 of all Americans with health insurance were enrolled in some form of managed care plan. The term … underlying market failures in the health care system asymmetric information about health risks, moral hazard, limited information … care on utilization. Nonetheless, many studies suggest that managed care plans reduce the rate of health care utilization …

In two important health policy contexts – private plans in Medicare and the new state-run “Exchanges” created as part … policy in individual health insurance markets based on fitting total plan payments to health plan costs per person as closely … as possible. A least squares regression including both health status and variables used in premiums reveals the weights a …