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    Thursday, April 03, 2003

    HMO Deathblow? The Supreme Court has dealt a blow to the HMO’s in knocking down their right to pick and choose among providers:

    Justices decided 9-0 that Kentucky can force health maintenance organizations (HMOs) to accept any qualified doctor who wants to join. About half the states have these so-called "any willing provider" (AWP) laws, and supporters say it gives patients greater choice and flexibility. The law was specifically designed to help low-income patients with limited health care options.

    Not surprisingly, the HMO’s don’t like it:

    HMOs and other groups call the policy "Bolshevik" health care coverage, arguing it increases patient costs because health care companies are prevented from choosing providers based on quality, price and volume.

    If HMOs "can no longer be selective, there will be cost and quality implications affecting the level of care" they can provide, said Robert Eccles, the attorney representing the health plans.

    The cased provided another example of the Court's continuing interest in federalism, testing the often conflicting balance of power between the national government and the states.


    Well, this will make it a lot harder for HMO’s to control costs. It just could be the beginning of the end for them.
     

    posted by Sydney on 4/03/2003 07:50:00 AM 0 comments

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