CORPORATE HEALTH INS., INC. v. TEXAS DEPT. OF INS.

No. 98-20940.

215 F.3d 526 (2000)

CORPORATE HEALTH INSURANCE, INC.; Aetna Health Plans of Texas, Inc.; Aetna Health Plans of North Texas, Inc.; Aetna Life Insurance Company, Plaintiffs-Appellees-Cross-Appellants, v. The TEXAS DEPARTMENT OF INSURANCE, Defendant-Cross-Appellee, Jose Montemayor, Commissioner of the Texas Department of Insurance; John Cornyn, Attorney General, State of Texas, Defendants-Appellants-Cross-Appellees.

United States Court of Appeals, Fifth Circuit.

June 20, 2000.


Attorney(s) appearing for the Case

John Bruce Shely (argued), Kendall Matthew Gray, Andrews & Kurth, Houston, TX, for Plaintiffs-Appellees-Cross-Appellants.

David Calvin Mattax (argued), Austin, TX, for Montemayor, Cornyn and Texas Dept. of Ins.

David E. Keltner, Jose, Henry, Brantley & Keltner, George Parker Young, Donna Ruth Peery, Friedman, Young, Suder & Cooke, Fort Worth, TX, for Montemayor and Texas Dept. of Ins.

George William Scott (argued), U.S. Dept. of Labor, Office of Solicitor, Washington, DC, for Alexis M. Herman, Amicus Curiae.

Sarah Lenz Lock, Michael Robert Schuster, American Ass'n of Retired Persons, Washington, DC, for American Ass'n of Retired Persons, Amicus Curiae.

Leonard A. Nelson, Michael Lynn Ile, American Medical Ass'n, Chicago, IL, Donald P. Wilcox, Texas Medical Ass'n, Austin, TX, for American Medical Ass'n and Texas Medical Ass'n, Amici Curiae.

Patricia Anne Becker, Akin, Gump, Strauss, Hauer & Feld, Austin, TX, for Texas Ass'n of Health Plans and Health Ins. Ass'n of America, Amici Curiae.

Anthony F. Shelley, Miller & Chevalier, Chartered, Washington, DC, for Blue Cross and Blue Shield Ass'n and Ass'n of Federal Health Organization, Amici Curiae.

James R. Barnett, Gordon & Barnett, Washington, DC, for Ass'n of Federal Health Organization, Amicus Curiae.

Before HIGGINBOTHAM and PARKER, Circuit Judges, and ATLAS, District Judge.


PATRICK E. HIGGINBOTHAM, Circuit Judge:

Large changes in the delivery systems for medical services, including the growth of health maintenance organizations ("HMOs") and managed care organizations ("MCOs"), came as rapid responses to rising costs for medical services and to the growth of medical expense reimbursement for employees. These new entities injected an intermediary between doctor and patient in setting medical care charges and making payments; at the same...

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