HMO Legislation
* In the May 30 story, “Assembly OKs Bill on HMOs,” an HMO association spokesperson alleges that this legislation to give patients protection from capricious decisions by HMO bureaucrats would increase health-care costs.
This is wrong. Our analysis indicates that the provisions in AB 794 and a similar measure, AB 536, could reduce health-care costs by rationalizing the decision-making about denials of care. These measures would reduce confusion, eliminate error--and protect patients and their treating physicians from the endless bureaucratic nightmare now imposed on them by HMOs and other managed care organizations.
JAMES G. KAHN MD, MPH
KEVIN GRUMBACH MD
Institute for Health Policy Studies
UC San Francisco
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