What Is an HMO Gag Clause?

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    Backlash From Physicians

    • Physicians fought hard against the HMO gag clause, saying it could destroy the trust between them and their patients. They also said the clause could significantly reduce the chances of recovery for a seriously ill patient requiring innovative treatment and full information about his illness.

    Law Barring Gag Clauses

    • In December 1996, President Bill Clinton's administration prohibited the use of the gag clause by HMOs and other health plans that treat Medicaid patients.

    Position of Associations

    • In a 1997 article, the "Wall Street Journal" reported that the American Medical Association had complained about doctors facing disciplinary actions from HMOs for discussing uncovered options. The American Association of Health Plans, which represents the HMO industry, responded by issuing statements against the use of gag clauses.

    Gag Clauses Today

    • HMOs say they no longer use gag clauses. However, contract wording still warns physicians against making disparaging comments against HMOs.

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