Editing Health maintenance organization (section)

== Cost containment ==
Although businesses pursued the HMO model for its alleged cost containment benefits, some research indicates that private HMO plans do not achieve any significant cost savings over non-HMO plans. Although out-of-pocket costs are reduced for consumers, controlling for other factors, the plans do not affect total expenditures and payments by insurers. A possible reason for this failure is that consumers might increase utilization in response to less cost sharing under HMOs.<ref>Jaeun Shin, Sangho Moon, [https://archive.today/20120709082226/http://findarticles.com/p/articles/mi_hb5814/is_1_45/ai_n29387922/pg_1?tag=artBody;col1   "Do HMO Plans Reduce Expenditure in the Private Sector?"], Economic Inquiry, Jan 2007.</ref> Some<ref>[http://www.pnhp.org/news/2000/march/claim_that_hmos_sav.php "Claim That HMO's Save Money Is Little More Than "Folklore"] Health Affairs Study Finds," 2000. Physicians for a National Health Program.</ref> have asserted that HMOs (especially those run [[for profit]]) actually increase [[Overhead (business)|administrative costs]] and tend to cherry-pick healthier patients.