Expanded Managed Care Liability: What Impact On Employer Coverage?

Authors

David M. Studdert
William M. Sage, Texas A&M University School of LawFollow
Carole Roan Gresenz
Deborah R. Hensler

Document Type

Article

Publication Date

11-1999

Journal Title

Health Affairs

ISSN

0278-2715

DOI

10.1377/hlthaff.18.6.7

Abstract

Policymakers are considering legislative changes that would increase managed care organizations' exposure to civil liability for withholding coverage or failing to deliver needed care. Using a combination of empirical information and theoretical analysis, we assess the likely responses of health plans and Employee Retirement Income Security Act (ERISA) plan sponsors to an expansion of liability, and we evaluate the policy impact of those moves. We conclude that the direct costs of liability are uncertain but that the prospect of litigation may have other important effects on coverage decision making, information exchange, risk contracting, and the extent of employers' involvement in health coverage.

First Page

7

Last Page

27

Num Pages

21

Volume Number

18

Issue Number

6

Publisher

Project HOPE

Recommended Citation

David M. Studdert, William M. Sage, Carole R. Gresenz & Deborah R. Hensler, Expanded Managed Care Liability: What Impact On Employer Coverage?, 18 Health Affs. 7 (1999).
Available at: https://scholarship.law.tamu.edu/facscholar/1743