The relationship between traditional insurance plans and managed care was influenced by which act?

The Health Maintenance Organization (HMO) Act significantly influenced the relationship between traditional insurance plans and managed care. This act, enacted in 1973, aimed to promote the establishment of HMOs as a way to provide a more coordinated and cost-effective healthcare delivery system. By encouraging the growth of HMOs, the act also fostered a shift from traditional fee-for-service insurance models, which often incentivized more visits and procedures, towards managed care models that emphasized preventive care and efficient resource utilization.

The HMO Act allowed for the creation and regulation of managed care organizations, which aimed to control healthcare costs while improving quality of care. As a result, this legislation played a pivotal role in shaping how insurance plans operate today, aligning them with managed care principles that prioritize patient care management and cost containment strategies. This historical context is crucial for understanding the current healthcare landscape, as it highlights the transition from traditional insurance models to managed care frameworks.