The Law of Healthcare Administration Assignment | College Homework Help

In not less than 200 words discuss the follow:College Homework Help

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You have learned about the liability of MCOs (managed care organizations) such as HMOs (health maintenance organizations) and PPOs (preferred provider organizations). Thinking about the information in Chapter 6 on

Title: The Law of Healthcare Administration

Edition: 8th (2017)

Author: Showalter

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Publisher: Health Administration Press Book

ISBN: 978-1567938760

where does the liability lie for the managed care organization when the MCO personnel make decisions about insurance coverage for hospital stays?

Please do not limit your analysis to length of stay, but consider other scenarios associated with MCO decision making such as approval or denial of medically necessary treatment (or limitations of treatment) as well, and share your scenarios with the class. Defend your response thoroughly and include the potential liability implications. Lastly, discuss the options, if any, MCO or PPO plan members have when denied coverage for medically necessary care.

In two different paragraph with no less than 100 words give your personal opinion to and Marivette Bedoya

Sharon Buchanan

Since the mid-1990s, forty-seven states have established a patient bill of rights that attempt to protect against managed care abuses. One of the primary obstacles to federal enactment has been uncertainty over the consequences of increasing MCOs’ liability exposure (Mariner, 2016).  State’s statutes on managed care liability are not consistent or clear about which forms of direct or vicarious liability are included. The statutes give an individual the right to sue MCOs for wrongful actions that cause personal injury, however these statutes target narrower or broader ranges of managed care activities.

Most statutes are not clear about which forms of direct or vicarious liability they might include.  Direct liability is when the MCO is the primary wrongdoer and vicarious liability holds MCOs secondary liable for errors made mostly by treating physicians.  Managed care liability statutes also vary in the preconditions for bringing suit. California, Georgia, New Jersey and Washington limit suit to patients with serious injuries and California, Georgia, New Jersey and Texas require that external review channels be pursued prior to suing for damages (Mariner, 2016).

The Employee Retirement Income Security Act (ERISA) shields managed care organizations from liability when they are part of an employee group health plan governed by ERISA. Unlike patients with other types of insurance, patients in ERISA health plans do not have a malpractice remedy for a managed care organization’s negligence. ERISA prohibits negligence claims against ERISA health plans for injuries resulting from denial of plan benefits, failure to use qualified physicians, utilization review, or improper plan administration. Attorneys are unwilling to file suits based on coverage denials because leading ERISA preemption rulings have not yet been overruled (Hall & Agrawal, 2003).College Homework Help

When denied coverage for medically necessary care, MCO or PPO plan members must go through levels of appeals, which are reviewed by their insurance company. After the appeal process, the member can take his case to an independent review board and/or litigation.  The review board is a group of medical professionals who are not affiliated with insurance companies, nor do they have any fiscal bias as to whether or not claims are paid or denied. Generally, this is where medical necessity denials appeals are given the full, fair, and objective review that families and patients deserve; and conversely, where we see the most denials overturned (2019).

Managed care organizations where created to intend to reduce unnecessary healthcare cost through the use of patients being able to select care in terms of affordable costs and physician economic incentives (Showalter, 2017). Managed care organizations have a main focus for more preventative and primary care. Within managed care organizations lie health maintenance organizations and preferred provider organizations to provide the best care at minimal costs.

Due to managed care organizations placing requirements on physicians to take on more responsibilities with less patient referrals to specialists, an increase of suit are linked to the growth in managed care. With managed care organization personnel making decisions, physicians are often caught in the middle toward their responsibility to the patient and to the obligation to the managed care organization about insurance coverage for hospital stays. However, working under managed care organization personnel doesn’t not necessarily make them non-liable.

There is an Employee Retirement Income Security Act that protects managed care organizations from liability when they are part of an employee group health plan affiliated with the Employee Retirement Income Security Act. The Employee Retirement Income Security Act does not allow negligent claims to be made against the Employee Retirement Income Security Act health plans for injuries (Hall & Agrawal, 2003).Get Applied Science homework help today

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