Managed care Essay Example | Topics and Well Written Essays - 1250 words

Managed care - Essay Example However, during World War II, the market for healthcare coverage started to gain its momentum. With the motive to attract and retain the good workers, the employers started integrating additional benefits for the employees that eventually enhanced quality of their services. This even led towards integrating new concepts of healthcare into the organizations and certainly enhanced the quality life of the employees. Furthermore, the employees even being newly accustomed to the healthcare services accepted the new method of compensation heartily. This phenomenon further developed the ability of the employers to trade in the labor market efficiently, making the concept to be well accepted (Schield, Murphy, & Bolnick, 2000). Correspondingly, with the increasing demand for the healthcare services and their acceptance amongst the employees, the labor unions started demanding for introducing such services as a compulsion for the employers. The loopholes persisted into managed care services were noted to be gaining importance amongst a few of the insurers or employers. Furthermore, these were more evident during the decade bewteen1950 and 1960 when the economy started expanding. The insurers paid off the hospital and the physician charges to the employees under the healthcare service compensation. Observably, the healthcare services cost were paid by the employers for their employees following a procedure of reimbursement. However, the service providers went for incurring extra costs and thus were not controlled by the financial rules and regulations of the market. The boom of economy in 1950 and 1960 were represented by the slack economic seasons of 1970. This change in the economic settings of the society compelled the employers to obtain a detailed view about their overall expenses. Specifically, the compensations and their benefits were crosschecked that evidenced