ABSTRACT
On November 9,1996, during Dorothy Cantor's term as President of the American Psychological Association, she addressed the New Jersey Psychological Association at its fall conference. To maintain the color and intensity of its tone, her address is published in this chapter as close to its original form as possible. As early as September of 1994 economists knew that managed care organizations were not the answer. The New York Times headline then said, “To economists, managed care is no cure-all.” The Congressional Budget Office recently reported that, “although HMO’s appear to reduce health care costs, there is no credible evidence that they reduce the rate at which costs subsequently increase.” The Federal Government issued rules restricting the ability of HMO’s to pay benefits and other financial rewards to doctors as an inducement to limit services to Medicare and Medicaid.
