Much more, there was some form of malpractices seen in the individual’s health insurance purchased, also there was an increase in reliance on drugs and it other related pharmaceutical costs versus that of healthcare technologies. Besides that, an aspect of case settlement and jury awards was also a factor to this crisis (Dranove, 2010). For that matter, there was an urgent need for the government to take action to correct as well as balance the health care system so that, there could be ways to contain costs. It’s to this effect that, the American healthcare evolution brought in managed care as the change to the economic traces as it demonstrated the ability to control cost. Although, the concept managed care existed those times, but it wasn’t that effective or it did not gain momentum. (Bodenheimer and Grumbach, 1998). So this new model arrived but was a little more complex for the population to …show more content…
And this gave room for the medical insurance team to intervene in the individual’s medical decision-making regarding medical issues pertaining their health. Unlike before, when managed care wasn’t in effect, the team of medical insurance did not have any power over the individual’s decision on healthcare. Whiles the care-given (to patients) at that time was quiet complex in a sense that, some people received quality care from an independent and nonprofit hospitals whiles others unable to due to costs involved. And this system or model generated into the significant spiraling cost. So it had a negative impact on the average person in terms of family, occupation, age wise and what have you. Having said that, these issues increased mortality and morbidity rate in the country simply because, those who couldn’t afford health care would spread any deadly infectious diseases unintentionally which resulted into death living some part of geographic area with a high risk of getting infected or they did not receive what is called ‘’quality care’’