Welfare Plans Edition
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June 13, 2000
Court Rules Against Lawsuits Targeting HMOs
Excerpt: " The case from Illinois was the first Supreme Court challenge to the managed-care industry. The justices considered a woman’s claim that she should be able to sue her HMO on the grounds that financial incentives moved her doctor to ignore her interests, thus violating the legal obligations of the doctor and HMO under federal law." (ABCNEWS.com)
Supreme Court Bars Patients from Suing HMOs Under ERISA On Grounds of Physician Incentive Payments
Excerpt: "In the much-anticipated decision, the justices unanimously overturned an appeals court ruling and barred patients from suing their HMO under [ERISA]. The ruling, however, has no bearing on state laws granting patients the right to sue for damages." (insure.com)
Court Limits Some Lawsuits Against HMOs
Excerpt: "The core question in the case was whether an HMO breaches its responsibility to the patient when it offers doctors financial incentives to hold down costs by limiting care." (Washington Post)
Supreme Court Reverses HMO Decision
Excerpt: "The Court concluded that HMO physicians' 'mixed eligibility and treatment decisions'--involving, for example, when to use diagnostic tests, making referrals, standards of care, and reasonableness or necessity of certain treatment--are not fiduciary decisions under ERISA." (Groom Law Group)
APPWP Welcomes Supreme Court’s Ruling That HMO Did Not Act as ERISA Fiduciary
Excerpt: ""As one of the only business groups to file a friend of the court brief in this case, we are pleased that the Court agreed with us that this case was not about an ERISA fiduciary breach, but was instead an unsuccessful attempt by the plaintiffs to advance a novel interpretation of federal law that was intended to stop managed care in its tracks." (Association of Private Pension and Welfare Plans)
Chartered Planes, Interest-Free Loans Lavished on California Executives
Excerpt: "The three basic components of executive pay don't change much from one Orange County [Calif.] company to the next. But when it comes to extra-special perquisites, local companies fall into two separate camps: those like Santa Ana-based Amplicon Inc. that offer top execs matching 401-k contributions and little else, and those like Aliso Viejo-based Fluor Corp. that really roll out the perk barrel." (Knight-Ridder / Tribune Business News)
Boards Often Reward Ceos Despite Companies' Poor Stock Performance
Excerpt: "Boards of directors tend to react slowly to faltering chief executives. Then they fire them as quietly as possible, when they fire them at all, said Kevin Murphy, a business economics professor at the University of Southern California who is an expert in executive compensation." (Knight-Ridder / Tribune Business News)
Report by Nat'l Alliance for Fair Employment: 'Contingent Workers Fight for Fairness'
Excerpt: "Nearly three working Americans in ten are now employed not in full-time, permanent positions but in so-called contingent or nonstandard jobs. The 'downsizing' of standard employment and its replacement by contingent jobs are a core feature of the new economy." (FairJobs.org)
HMOs Still Have Work to Do, Survey Finds
Excerpt: "Nearly half of Americans report some type of problem with their health plan. A much smaller, though significant number of people say those problems are leading to serious medical and financial woes." (Los Angeles Times)
BenefitsLink Named One of 'Best 100 Web Sites for HR Professionals' in New Book
Excerpt: "Here's the book that cuts through the hype in identifying today’s best online HR resources. Analyzing 100 major sites, as well as identifying more than 700 additional sites by major categories, this unique guide helps users quickly find clear, precise, and up-to-date answers to their HR questions." (Impact Publications)
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