Managed
Care Under The Gun; Suing Your Managed Care (Managed Care Quarterly,
Spring 2001)
Written by: John P. Marren and Michael Paddock, Hogan Marren,
Ltd

Since the early nineteen-seventies America has struggled with the
cost of providing quality health care to its citizens. In an attempt
to control these costs, Congress blessed our healthcare system with
formal managed care legislation in 1973. One year later, Congress
passed legislation that preempts a large majority of state law claims
against managed care organizations. This legislation, the Employee
Retirement and Income Security Act (ERISA), has effectively been
an iron safe for managed care.

This complicated system of contractual medicine involved several
new aspects, including pre-authorization for care, medical necessity
determinations, gatekeeper physicians, capitation and many other
hoops for both providers and subscribers to jump through. The result
was that, for the next thirty years, patients - or, rather, subscribers
- provided both their congressional leaders and the courts with
a litany of managed care's failures.