HMO Liability Hot New Debate In New Jersey

Lawmakers and HMOs in New Jersey are on opposite sides of a bill that would allow consumers to sue health plans for malpractice.

The bill, introduced by Republican Assemblymen Steve Corodemus and Guy Talerico, would close a legal loophole that shields plans from malpractice liability lawsuits. Modeled on a Texas law, the bill would prohibit HMOs from issuing contracts forcing physicians to hold plans harmless for medical decisions. The New Jersey Association of Health Plans says the legislation would benefit only lawyers.

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