For immediate release: May 7, 1998

Contact: Tricia Alvarez
Jan Peterson
202/336-5898

Poll Finds Overwhelming Public Support for Legal Accountability
of All Managed Care Health Plans

Washington, DC -- The American Psychological Association (APA) today
released results of a national public opinion poll, conducted by Penn,
Schoen & Berland, that shows 77 percent of Americans support changing
federal law to allow patients to sue a managed care company when they are
injured by negligent decisions or cost containment actions.

Approximately 125 million individuals are currently prohibited from
suing their managed care plan under the 1974 Employee Retirement Income
Security Act (ERISA), should they be injured as a result of, for example,
a managed care company's decision to delay treatment or deny procedures
recommended by their health care provider.

"In recent years, poll after poll has reflected the public's increasing
concern about the quality of managed health care," says Russ Newman,
Ph.D., J.D., executive director for professional practice at the American
Psychological Association. "In short, the public is losing trust in
managed care. Our poll shows that Americans now want specific solutions
that remedy their concerns."

In fact, the APA poll found that 86 percent of Americans support passing
specific legislation that mandates legal accountability for all managed
care health plans, ensures access to specialists and emergency services
without prior authorization, and allows for access to providers outside
of their plan at a reasonable cost.

The Patient Access to Responsible Care Act (PARCA), introduced by Rep.
Charlie Norwood (R-GA) and Sen. Alfonse D'Amato (R-NY), includes all
these provisions. "And the public is willing to pay more for them,"
added Dr. Newman. The APA poll found that 78 percent of Americans
would still support this legislation even if it means an increase of up
to $4 per month in their health care premiums. Further, 63 percent would
favor the legislation if it were to cost $10 a month. Cost estimates
prepared by Muse & Associates, as well as Coopers & Lybrand for the
Kaiser Family Foundation, showed that implementing the provisions in
PARCA would increase premiums less than $4 per month.

Finally, the survey results showed three quarters of Americans (74
percent) would be less likely to choose to enroll in a managed care plan
if they knew the plan could not be held legally responsible for any
errors it might make in their treatment. "This finding sends a clear
message to the managed health care industry," says Dr. Newman.
"The public wants the assurance of legal accountability from their health
plans, and the managed care industry is not going to regain public trust
by trying to avoid it."

# # #

The American Psychological Association (APA), located in Washington,
D.C., is the largest scientific and professional organization
representing psychology n the United States and is the world's largest
association of psychologists. APA's membership includes more than
155,000 researchers, educators, clinicians, consultants and students.
Through its divisions in 50 subfields of psychology and affiliations with
58 state, territorial and Canadian provincial associations, APA works to
advance psychology as a science, as a profession and as a means of
promoting human welfare.

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