Californians can sue managed care organizations.

A new California law gives medical consumers access to second opinions and the right to sue HMOs for punitive damages, according to a recent news release. Almost 90% of California residents use managed care organizations.

Under current California law, consumers who question a physician's diagnosis may file a grievance and wait 60 days for a review. Under the new law, an independent medical panel can conduct the review when the desired treatment has been refused, altered, or hindered, and the appeal costs nothing.

The right to sue is what is raising eyebrows around the country because it sparks concern about the costs to both parties--healthcare organizations as well as patients.

On a federal level, the U.S. House of Representatives approved a managed care bill in October 1999 giving consumers the right to sue their health insurance companies for malpractice, but that legislation will have to be combined with a much narrower HMO bill approved by the U.S. Senate. In addition, this year's docket for the U.S. Supreme Court includes determining the legal liability of managed care organizations accused of cutting costs at the expense of consumers.