How Much Cheaper Are HMO's?

A fundamental assumption of the Clinton health plan is that managed health care, particularly in the form of HMO's, is less expensive than care provided by private doctors. A new study by the general Accounting Office, however, states that "little empirical evidence exists on the cost savings of managed care." The chart tracks the percent increases in health care costs and shows that HMO costs have risen almost as fast as those of private doctors.



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