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How Did We Get Here?

How Did We Get Here?

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Ron Howrigon
Beginning in the 1970s, and continuing through the turn of the century, we witnessed an explosion of HMOs and the expansion of a whole host of insurance products that we now collectively call “managed care.” This time period also saw healthcare costs continue to inflate faster than general economic growth and faster than government tax revenue growth. Many thought managed care, with its admittedly limited tool bag, would be the answer to controlling medical costs. That HMOs and other network-based insurance products were expanding while we were also producing significant increases in the cost of healthcare put the lie to that assumption early on.