Employees have increasing opportunities to enroll in managed care plans, an
d employers tend to favor these plans because of their lower costs. However
, lower costs may be the result of selection of healthier patients into man
aged case plans. This study measured differences in health care utilization
across an indemnity plan and a managed care plan, and for all employees to
gether. me found that apparent increases in utilization in both indemnity a
nd managed care plans disappeared when the plans were viewed together, refl
ecting the migration of sicker patients from indemnity plans to managed car
e plans.