Will Competition Plans Change Insurer-Provider Relationships?

The Reagan administration's market-oriented proposals for financing health care services and controlling their costs include a belief that "competition" among insurers and providers will lead to a fundamental reorganization of the system. But the limited evidence to date suggests that it will take more than the stimulus of increased consumer cost-sharing and reduced tax subsidies to create "competitive" provider behavior. Patients and providers are likely to continue business as usual in the fee-for-service sector.

Author(s): Jon R. Gabel; Alan C. Monheit

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Volume 61, Issue 4 (pages 614–640)
Published in 1983