Reference no: EM133962038

Question

An action was filed against the defendant, Managed Care, alleging claims of false advertising in connection with Managed Care's sale, marketing, and rendering of medical services. The plaintiff alleged that he was an enrollee in Managed Care's health plan. He also alleged that through misleading and deceptive material representations and omissions, Managed Care had employed a fraudulent, unfair scheme to induce people to enroll in its plan by misrepresenting that its primary commitment was to maintain and improve the quality of health care. The plaintiff alleged that Managed Care had been aggressively engaged in implementing undisclosed systemic internal policies that were designed to discourage its primary care physicians from delivering medical services and to interfere with the medical judgment of its healthcare providers. The result of these policies, he alleged, was a reduction in the quality of health care that is directly contrary to Managed Care's representations.

The plaintiff claimed that Managed Care's false advertising reduced the quality of medical services available to the enrollees and decreased the monetary value of their health coverage. The plaintiff requested restitution, refund, or reimbursement of monies paid by or on behalf of enrollees that resulted from excessive and ill-gotten monies obtained by Managed Care as a result of its unlawful, fraudulent, and unfair business practices and misleading advertisements.

1. Describe the ethical issues in this case.

2. Describe the value of a corporate compliance program and how it could help prevent false advertising.