Document Type


Publication Date



Center for Health Services Research and Policy, School of Public Health and Health Services, The George Washington University


Substance Abuse


This Issue Brief examines managed care corporate failures and the legal process. Managed care organizations are corporate hybrids that possess the features of both insurance and health care. As a result, the question of whether the proper legal forum for addressing a failure is the federal bankruptcy process or state insurance insolvency procedures is a complex one. The answer to this question is more than academic: legal protections for purchasers, members, and health care providers differ significantly depending on which legal system is used.

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