About
Publication Information
Subscriptions
Permissions
Advertising
Journal Rankings
Best Article Award
Press Releases
Resources
Access Options
Submission Guidelines
Reviewer Guidelines
Sample Articles
Paper Calls
Contact Us
Submit & Review
Browse
Current Issue
All Issues
Featured
Latest
Topics
Videos
Cases
Subscribe
California Management Review
California Management Review is a premier academic management journal published at UC Berkeley
Search
Article Information
Health Care Costs: A Moral and Economic Problem
Enthoven, Alain C.
35
/
2
(
Winter
1993
):
134
-
151
Health care costs are rising because of the incentive effects of insurance. These effects were supposed to be corrected by HMOs and Preferred Provider Insurance in which providers of care have incentives to be economical. But employers have not made these health plans compete on price. For example, under the formula used by the University of California for its employee health care, there is no marketplace reward for health plans with premiums below the average to reduce or hold down premiums. In the interests of a high-quality but affordable system of care, the U.C. and all other employers should instead adopt a strategy based on managed competition.