Health care financing administration’s new regulations for financial incentives in medicaid and medicare managed care: one step forward?

Because financial incentives for managed care physicians may create conflicts of interests, new regulations have been instituted that will result in disclosure of certain financial incentives to the Federal Government and to some patients. Given the limitations of these regulations, health plans and physicians should take the lead in addressing concerns about the harmful effects of financial incentives. For example, public disclosure may deter unusually strong financial incentives. Purchasing coalitions, advocacy groups, and journalists should have increased access to information about physician-level incentives. These nonregulatory measures might reassure patients that managed care physicians are committed to their best interests.