The Evolution of Health Insurance in the United States*

Aetna Chairman Ronald E. Compton and Dr. Neil Schlackman, senior medical director for Aetna U.S. Healthcare, provide an overview of the continuing evolution in the U.S. health insurance market, the growing dominance of managed care and the many ways in which managed care can and does enhance the quality of care while controlling costs.Managed care is an organized system of medical care that integrates financing and delivery of appropriate health care. Managed care plans generally offer several advantages over traditional insurance coverages, including lower costs, more comprehensive benefits, preventive services and lower out-of-pocket expenses for patients. Because managed care relies on performance measurement and use of data, the cost and effectiveness of treatments can be documented. Thus, managed care provides a mechanism to provide better quality care at lower cost.The managed care model will continue to evolve over time. As rising costs, aging populations and technological advances continue to strain current systems, all parties involved must be willing to confront these issues and devise new ways to ensure that their finite resources are used appropriately to produce the best possible health outcomes.