How bad faith lawsuits can be tailored to fit HMOs.

Abstract

In January 1999, in the case of Goodrich v. Aetna, a California jury returned a record-breaking verdict of $120.5 million damages in favor of a widow as a result of Aetna's failure to act in good faith in the treatment of her terminally ill husband. The following article discusses the history and basis of this kind of lawsuit, major decisions specifically pertaining to HMOs, and the outlook for future liability in this area.