UR Here: The Supreme Court's Guide For Managed Care

Document Type

Article

Publication Date

9-2000

Journal Title

Health Affairs

ISSN

0278-2715

DOI

10.1377/hlthaff.19.5.219

Abstract

There is often a gap between the legal issue the Supreme Court chooses to settle and the policy issue the public thinks is being decided. The media tended to view the recent decision in Pegram v. Herdrich as a referendum on managed care. Seen in that way, managed care won. Specifically, financial incentives paid to physicians were vindicated as a legitimate cost containment device. By placing standard management practices clearly within the legal mainstream, moreover, Pegram drained class-action litigation against managed care—much of which is predicated on fraud and racketeering—of moral force and potential emotional impact with judges and juries. (On the other hand, the Court's suggestion that fiduciaries have a legal duty to disclose information may keep many of these suits alive in federal court.)

First Page

219

Last Page

223

Num Pages

5

Volume Number

19

Issue Number

5

Publisher

Project HOPE

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