ABSTRACT
Health maintenance organizations (HMOs) policy objectives should recognize the strengths of public-private association with recognition of a proper balance of federal involvement through development, implementation, and evaluation of minimal standards and regulations. The ideal design of HMO program activities might not be feasible or desirable for implementation at the onset. If HMOs are to be successful as competitive organizations, public apathy must be translated into public expertise through making adequate information available about health services, and through broad participation in decision-making. A market system of competing HMOs would presuppose a new informational network about health services and entitlements. The basic issue is not about laissez-faire or regulation, or even of federal versus private regulation, but of the government regulatory role being effective in achieving market goals. The federal role would be much effective on behalf of consumers if it had been exerted from the beginning to protect the interests of Medicare patients, by ensuring that their dollars were used wisely.
