HEALTH-CARE FINANCING ADMINISTRATIONS NEW REGULATIONS FOR FINANCIAL INCENTIVES IN MEDICAID AND MEDICARE MANAGED CARE - ONE-STEP FORWARD

Because financial incentives for managed care physicians may create co nflicts of interests, new regulations have been instituted that will r esult in disclosure of certain financial incentives to the Federal Gov ernment and to some patients. Given the limitations of these regulatio ns, health plans and physicians should take the lead in addressing con cerns about the harmful effects of financial incentives. For example, public disclosure may deter unusually strong financial incentives. Pur chasing coalitions, advocacy groups, and journalists should have incre ased access to information about physician-level incentives. These non regulatory measures might reassure;patients that managed care physicia ns are committed to their best interests. (C) 1998 by Excerpta Medica, Inc.