Managed Care Does Not Appear to Have a Spillover Effect on the Quality of Diabetes Care for Medicare Patients

Vol. VII, No. 7
December 2004

Research and policy experts often assume that growth in the market penetration of managed care organizations (MCOs) and the incentives they use to control costs have changed health care market behavior across the board. However, according to new research by Paul L. Hebert, Ph.D., and his colleagues at the Mount Sinai School of Medicine, there is little evidence to suggest a spillover effect of managed care market penetration on individuals with diabetes in the non-managed care sector, specifically Medicare beneficiaries with diabetes enrolled in fee-for-service (FFS) plans.