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managed competition

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managed competition
n.
A theory of health care delivery services that holds that the quality and efficiency of such services would improve if, in a market controlled by the federal government, independent groups had to compete for health care consumers.


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In April 2008, the state Division of Insurance started the managed competition system that allows insurance companies to propose competitive rates, rather than having the state set insurance rates.
The city of San Diego, for example, is trying to follow in the footsteps of San Diego County, which instituted managed competition in the mid-1990s.
A system of managed competition for auto insurance, in which insurers battle for name recognition, already is showing signs it can be beneficial to Massachusetts, according to state insurance commissioner Nonnie Burnes.
 
 
 
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