Supremes Favor HMO's

From: art fougner, md (evsono@pipeline.com)
Mon Jun 21 11:35:01 2004


This just in ...

art

Supreme Court rules for HMOs Ruling weakens states' patient protection laws >From Bill Mears
CNN Washington Bureau Monday, June 21, 2004 Posted: 12:30 PM EDT (1630 GMT)

WASHINGTON (CNN) -- The Supreme Court on Monday gave managed-care companies a victory in a long-standing fight against patients who wanted to take their malpractice claims to a state court.

At issue in the opinions announced Monday was whether federal courts are the proper forum for hearing certain malpractice and negligence claims against health maintenance organizations, also known as HMOs.

Different states have various laws that can either make it easier or more difficult to pursue such lawsuits in federal court. State courts traditionally have allowed greater damage awards by juries against businesses, industry and the government.

The cases announced Monday involved a patient whose hospital stay was cut short, and a man forced to take a cheaper prescription drug. The two cases were brought against large HMOs in Texas. (Background on the cases)

In the 9-0 decision, Justice Clarence Thomas, writing for the court, said that in theses cases, federal law carried greater legal weight. Thomas said congressional law was clear this was done "to provide a uniform regulatory regime."

The cases involve an issue that has stymied Congress, which has tried and failed to pass national patients' rights legislation. Some states have passed their own patient protection laws in the meantime, but the scope of protection varies.

Insurers have claimed that patients could only go to federal court, and then only to recover the value of whatever benefit the HMO denied.

The ruling weakens the Texas patient protection law and those of other states.

According to an Associated Press report, the high court based its ruling on the language of a 30-year-old federal law, originally meant to protect employee pensions and other benefits, but now applied to the managed care industry.

http://www.cnn.com/2004/LAW/06/21/hmos/

--
art fougner, md
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