Employers' liability risk for managed care injuries

Area of Science:

• Health Policy
• Law and Economics
• Healthcare Management

Background:

• Employer liability concerns represent a significant barrier to expanding tort liability for managed health care organizations.
• Understanding employer perspectives is crucial for shaping effective health policy and managing healthcare systems.

Purpose of the Study:

• To assess the extent of employer concerns regarding liability in managed health care.
• To determine how potential increases in liability threats might influence employer decisions on providing health benefits.

Main Methods:

• Conducted nationwide interviews with key informants representing diverse legal and demographic backgrounds.
• Key informants were selected to provide a broad perspective on employer liability and health benefit provision.

Main Results:

• Respondents reported a low level of current concern about liability related to managed health care.
• Few employers indicated that increased liability threats would lead them to discontinue health benefits.
• Most employers would adopt a 'wait-and-see' approach to theoretical liability risks.

Conclusions:

• Employer liability concerns are not a major immediate barrier to managed care, contrary to public policy assumptions.
• Employers are more likely to explore alternative cost-management strategies than to drop health benefits in response to liability threats.
• Potential employer responses include shifting to fully insured plans or defined contribution models.