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ANDERSON v. HUMANA, INC.

No. 93-2283.

24 F.3d 889 (1994)

Vernita L. ANDERSON, Plaintiff-Appellant, v. HUMANA, INC., et al., Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided May 11, 1994.

Attorney(s) appearing for the Case

Joseph R. Curcio, David A. Novoselsky (argued), Novoselsky & Associates, Chicago, IL, Steven B. Levy, Naperville, IL, for plaintiff-appellant.

Jeffrey P. Lennard, Gary Senner, Lorie A. Chaiten (argued), Donna J. Vobornik, Sonnenschein, Nath & Rosenthal, Chicago, IL, for defendants-appellees.

Before CUDAHY, EASTERBROOK, and KANNE, Circuit Judges.

EASTERBROOK, Circuit Judge.

A health maintenance organization (HMO) offers, for a fixed fee, as much medical care as the patient needs. Providers using traditional fee-for-service methods, by contrast, charge for each procedure. Each method creates an unfortunate incentive: a physician receiving a fee for each service has an incentive to run up the bill by furnishing unnecessary care, and an HMO has an incentive to skimp on care (once patients have signed up and paid...

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