Managed Health Care

* While major managed-care providers are striving, with considerable success, to keep health insurance premiums down, we see a real danger in imposing government-mandated premium caps, (“Health Insurers to Limit Premium Hikes, Experts Say,” Dec. 11).

The goal of premium caps is to ensure that costs are reduced, but this is fundamentally inconsistent with achieving long-term, real savings in our medical system. Virtually all health economists agree that one key to real savings is to reduce unnecessary medical treatments and provide only the services that are proven to work. Another key is to educate and encourage individuals to be informed purchasers of health care.

Managed care is designed to achieve these savings, but managed care has not yet achieved universal market penetration. The revolution is still occurring and any artificial price restrictions will significantly impede its development.

Significant investment is required to build the managed-care infrastructure needed for effective health care reform under the President’s plan and other proposals. The capital to build this infrastructure will not be available if premium caps are imposed. Today’s investors in the health care industry will not continue to put capital in an industry that carries the risk of artificial price restraints. Managed care is already beginning to significantly control costs. Legislation should enhance this capability, not cut it off.

MIKE DOBBS

Vice President, Aetna Health Plans

Los Angeles