The Handbook of Employee Benefits: Health and Group Benefits 7/E, 7th Edition

CHAPTER 9Health Care Quality: Are We Getting Our Money’s Worth?

William J. Mayer

Employers have a number of reasons for offering medical benefits to their employees. Perhaps most important is the objective of attracting and retaining employees.¹ More than 75 percent of small businesses offering medical benefits indicate that they think the provision of these benefits is “the right thing to do.”² As employers have turned to managed care organizations (MCOs)—preferred provider organizations (PPOs), health maintenance organizations (HMOs) and point-of-service (POS) plans—and consumer-driven health care plans to help control the cost of these benefits, many have recognized the need to address issues of quality of care to ensure that their medical ...