SUMMARY of
H.R.1749 (Stark)
Managed Care Plan Accountability Act of 1997
"MCPAA"

• If any ERISA plan connected HMO makes a medically innappropriate decision because of cost-containment, or otherwise restricts the treating doctors' full medical discretion, the plan sponsor and the HMO shall be jointly and severally liable for compensatory and consequential proximate damages, and at the court's discretion, punitive damages.
• Remedies under this paragraph are in addition to remedies otherwise provided under ERISA, ie: equitable remedies for denial of benefits.
• State courts shall have concurrent jurisdiction over such actions.
• The plan must also indemnify providers for any liability resulting from failure to provide a benefit as a direct result of plan restrictions on doctor/patient communication.
• Such actions by any managed care plan will also result in adverse tax consequences for the plan.