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Finance issue brief: bans on financial incentives
Issue Brief (Health Policy Tracking Service)
|November 10, 2000
Summary
State lawmakers are banning financial incentives in managed care plans, with 27 states already enacting such laws. This follows previous efforts to eliminate gag clauses, aiming for better healthcare practices.
Area of Science:
- Healthcare Policy
- Health Law
- Managed Care
Background:
- Previous legislative efforts focused on banning gag clauses in healthcare.
- Managed care plans have utilized financial incentives, raising concerns about patient care.
Purpose of the Study:
- To examine the trend of state lawmakers prohibiting financial incentives used by managed care plans.
- To document the legislative landscape regarding financial incentives in managed care.
Main Methods:
- Analysis of state legislative actions and enacted laws.
- Review of policy trends following gag clause bans.
Main Results:
- Twenty-seven states have enacted laws to ban financial incentives in managed care plans.
- A growing legislative movement to regulate managed care plan practices is evident.
Conclusions:
- State-level regulation is actively addressing financial incentives in managed care.
- The prohibition of financial incentives represents a significant shift in healthcare policy.