Thursday, April 03, 2003

Supreme Court Sides With States on HMOs
Washington Post story - "In a blow to the managed health care industry, the Supreme Court ruled unanimously yesterday that states have a right to force health maintenance organizations and other health care networks to open themselves to all doctors, hospitals and other providers who agree to abide by their terms. The ruling upholding Kentucky's so-called any willing provider (AWP) law struck directly at the economic linchpin of HMOs, which attempt to hold down health-care costs by creating limited networks of providers that are willing to accept lower fees in return for a higher volume of business generated by HMOs. But there was disagreement over the practical effect it would have on the health care system."