Better incentives for both insurers and insurees are required to encourage managed care products that are successful in improving quality, efficiency and care co-ordination. Managed care products should encourage care providers to work as teams to deliver co-ordinated care, driven by incentives for quality and evidence on best-practice medicine. They could also be used to encourage the introduction of alternatives to fee-for-service payment arrangements. In Switzerland, the health insurance benefit package is centrally determined and the Health Insurance Law requires effectiveness, appropriateness and efficiency for inclusion of goods and services in the benefit basket.