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Health Care Reform:

Health Insurance & Affordable Care Act

WebMD Health News

Study Suggests HMOs Get Bad Rap

March 9, 2000 (Washington) -- A new report shows HMOs and other types of health plans aren't very different when it comes to frequency of surgery, problems with unmet need, delayed care, and use of emergency room and hospital services. HMOs do offer more preventive care, however, by providing benefits such as flu shots and advice on smoking cessation. HMOs also showed a smaller proportion of families with annual out-of-pocket costs over $1,000, compared to other health coverage.

The report, conducted by The Center for Studying Health System Change, was based on findings from more than 35,000 telephone surveys conducted from 1996 to 1997. Researchers compared responses of HMO enrollees to those who were covered by "non-HMO" plans, which included preferred provider organizations and traditional fee-for-service products.

Overall, the study found HMO patients made more visits to the doctor's office, but their plan paid for fewer trips to medical specialists. According to the report, non-HMO patients were happier both overall and with their physician visits than HMO participants. Even though other types of health plans may have won the popularity contest among members, observers say the study shows the managed care system certainly is not careening out of control.

What the results indicate, says Janet Corrigan, PhD, an official at the Institute of Medicine, is the "disconnect" between public opinion of HMOs and reality. The disconnect may be even more widespread, says Linda Bilheimer, an official at the Robert Wood Johnson Foundation, since "most people don't know what type of health plan they're in."

"The HMO's just the whipping boy," says Larry Green, MD, director of the American Academy of Family Physician's Center for Policy Studies.

Robert Reischauer, PhD, president of the nonprofit Urban Institute, says the findings should help to calm consumer fears of HMOs. But he was also skeptical about how much public opinion could change, given the bitterness of attacks on HMOs from physicians and others in the health industry.

Few expect that the study's findings will blunt the strong public momentum for a patients' bill of rights. John Rother, director of legislation for the American Association of Retired Persons, tells WebMD, "These findings do not support the idea of a crisis in access to care in HMOs, [but] what's driving the consumer protection debate is the desire to be assured that you'll be treated fairly." That debate, Rother says, "doesn't really have much to do with the overall statistics as much as your personal experience."

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