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Leading policy-makers and scholars explain how market forces, deregulation, and consumer choice can work to improve health care for all Americans.

Commentary

Banks: The New HMOs
Dr. Scott Gottlieb, Forbes, 4-4-05

Gottlieb believes that a little known passage in the Medicare Modernization Act of 2003 will revolutionize health care markets.

A transformation is under way in health care that will displace the entrenched giants among the ranks of America's HMOs and pharmacy benefit managers. In their place will be millions of consumers linked by their financial services companies to accounts. These new accounts will allow them to manage their full range of medical benefits in the same fashion that they direct their 401(k)s. The impetus for this change is a Trojan horse buried inside the new Medicare law. Explicit language in the new law enables a health plan and drug plan to be offered by any well-capitalized outfit adept at marketing and able to bear some financial risk.

Competition drives consumer gains—and increased competition in health care markets is no exception to the rule.



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