Can managed care save Medicare? Achieving high quality and low costs through managed care

The article tackles the broad questions that currently engage policy makers grappling with Medicare managed care: quality, satisfaction, selection bias, disenrollment trends, cost savings, and the full savings potential of HMOs. HMOs have been shown to perform well in both the private sector and the Medicare Risk program on all of these dimensions, although the Risk program's flawed payment methodology limits the overall cost savings to Medicare.