As managed care becomes more prevalent in the United States, concerns
have arisen over the business practices of managed care companies. A p
articular concern is whether patients should be made aware of the fina
ncial incentives and treatment limits of their healthcare plan. At pre
sent, managed care organizations are not legally required to make such
disclosures. However, such disclosures would be advisable for reasons
of ethical fidelity, contractual clarity, and practical prudence. Phy
sicians themselves may also have a fiduciary responsibility to discuss
incentives and limits with their patients. Once the decision to discl
ose has been made, the managed care organization must draft a document
that explains, clearly and honestly, limits of care in the plan and p
hysician incentives that might restrict the care a patient receives.