After reading Chapters 3 and 4, you should be familiar with the many stakeholders involved in the health care system. In the early 70’s legislation was created for the establishment of Health Maintenance Organizations (HMOs) in an attempt to reduce health care costs due to the excessive spending of the fee-for-service health plans. Considering the reason for their creation, discuss your opinion regarding why managed care organizations did or did not have the intended effect. List two examples that prove your point.

Your initial post should be 250-300 words and utilize at least one scholarly source from the Ashford University Library to justify your recommendations for improvement. Cite all sources in APA format as outlined in the Ashford Writing Center.