Kaiser bucks the HMO trend

“What we pay for in medical care is for doing things — for operating on patients, for prescription drugs … insurers earn more when their patients do more,” says David Cutler, a professor at Harvard University. “But nobody earns more when the patients are healthier.”

But Kaiser says its influence is felt in northern California, where costs are 25 percent less than the New York area.

“We’re able to keep our members healthier; therefore, it costs less to take care of them,” says Dr. Francis J. Crosson, executive director of the Permanente Foundation
Imagine that – preventative medicine costs less overall! Isn’t that what advocates for national health care have been saying all along?

Kaiser bucks the HMO trend

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