Legal Challenges to Managed Care Cost Containment Programs: An Initial Assessment

Abstract

The success of managed care cost containment innovations depends on many factors, including how courts decide litigation challenging various cost containment initiatives. Although such litigation is just emerging, there is a sufficient number of reported cases for an initial assessment of court rulings. To date, there is no evidence that courts have systematically impeded cost containment initiatives. Few courts seem willing to usurp legislative choices in formulating health policy or to obstruct the market in organizing and delivering health care services. In this sense, the anticipated role of the courts as policymakers in shaping health care delivery has yet to emerge.