Final answer:
The managed care phenomenon was welcomed mostly by employers because it provided a cost-effective way to provide healthcare benefits to their employees. Managed care systems, such as HMOs, allowed employers to negotiate discounted rates with healthcare providers. Private insurance companies also benefited from the managed care phenomenon.
Step-by-step explanation:
The managed care phenomenon was welcomed mostly by employers because it provided them with a cost-effective way to provide healthcare benefits to their employees. Managed care systems, such as health maintenance organizations (HMOs), allowed employers to negotiate discounted rates with healthcare providers and offer their employees access to a network of healthcare services.
One example of a managed care system is the Medicaid program, which is run by the U.S. government in partnership with the states. Medicaid provides healthcare coverage to low-income individuals and families, and it is often funded by employers who contribute to the program through taxes.
Private insurance companies also benefited from the managed care phenomenon. They were able to expand their customer base by offering managed care plans to employers and individuals.