Independent Research and Policy Advocacy

Designing Health Systems Based on Managed Competition

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Managed competition is a theoretical concept for designing and regulating health insurance systems. Such systems can secure consumers’ interests by managing diverging incentives, instituting uniform regulations, equipping consumers to make informed choices, and creating a competitive environment tailored to rewarding those organisations that improve services to consumers. In this paper, we draw lessons from the Netherlands, Israel, Germany, and Colombia that can inform policymakers considering health system reform for universal health coverage. Country experiences with managed competition in their health systems yield crucial lessons for adopting the concept in India beginning with experimentation in sub-systems that seek to cover the entire target population and ensure the provision of quality healthcare.

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