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What three flaws found in traditional fee for service health insurance during the 1970 and 1980s...

What three flaws found in traditional fee for service health insurance during the 1970 and 1980s contributed to the rise of managed care during those decades, especially in the form of health maintenance organizations (HMOs)?

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Answer #1

1. In fee for service(FFS) model, the payers have to repay the money regardless of their impact on patient health.

2. No system to stop the unnecessary services existed in this system. For example, unnecessary tests ordered by physicians.

3. Increased the overall healthcare costs over time due to the lack of accountability of patients and providers.

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