Medicare managed-care proposal faces skepticism it can cut costs, lure consumers

The Bush administration is attempting to nail down specifies of its latest managed-care proposal for the Medicare program. HCFA Administrator Gail Wilensky predicted that the so-called point-of-service HMOs, which offer comprehensive services but allow individuals to move freely in and out of the plan, would be the "dominant form of managed care" in the future. But skeptics question the plan's ability to curb healthcare costs and attract consumer interest.