The June 21, 2004 Supreme Court decision ruling that state efforts to enforce “patient rights,” with the subsequent right to sue health plans in state court, were unconstitutional. This Policy Highlight discusses the finding and the implications for state legislatures that have passed patient rights legislation. This decision could potentially affect the 130 million HMO participants receiving coverage from employees. The Court further ruled that patients could sue their health plans over coverage decisions only in federal court, and damages would be limited to the cost of the denied coverage. Some speculate that this decision may revive the “national patients’ rights movement.”
