CONTACT: Andrew Pontious 310-392-0522 x308

                         California HMO Patients Limited to
                         Pre-Dispute, Binding Arbitration
                         Launch "HMO Arbitration Abuse
                         Report" Campaign

                         New Story & Picture Faxed Daily To Every Legislator

                         The Foundation for Taxpayer and Consumer Rights today
                         launched an "HMO Arbitration Abuse Report" campaign to
                         reveal daily the stories of patients harmed by their HMOs, yet
                         forced to have their disputes settled in private, HMO-controlled
                         arbitration hearings. Patients can be forced into mandatory,
                         binding arbitration as a condition of joining an HMO or managed
                         care health plan prior to any dispute arising.

                         The picture and story of another arbitration abuse victim will be
                         faxed and delivered daily to every member of the California
                         Assembly and Senate and to opinion leaders.

                         California Assembly Bill 1751 (Kuehl), sponsored by FTCR,
                         guarantees that HMO arbitration be voluntarily entered into only
                         after a dispute arises. This follows the 1998 recommendations of
                         a commission of the American Arbitration Association,
                         American Bar Association and American Medical Association.
                         Under state HMO liability legislation, passed in 1999 and to
                         take effect in 2001, patients will be able to recover damages
                         from an HMO that interferes with the quality of their care. But an
                         HMO enrollment contract can still force patients into a private
                         arbitration system controlled by private lawyers, rather than by a
                         judge and jury.

                         "Patients deserve the day in court that HMO liability legislation
                         promised them," said Andrew Pontious, a patient advocate for
                         FTCR, who researched and wrote the arbitration abuse reports.
                         "Just because a patient joins an HMO should not mean that they
                         have the courthouse doors closed to them. The right to sue an
                         HMO should mean the right to trial."

                         Forced arbitration can be lengthy, costly, unfair, and
                         conceals quality of care violations from public scrutiny.
                         * Arbitrators often depend on repeat business from HMO
                         corporations and are more likely to rule in their favor.
                         * Patients complain of abuse and delays by attorneys who are
                         not subject to discipline by judges.
                         * Arbitrators generally charge $100-$400 per hour, compared
                         to $350 per day generally for court costs.
                         * None of the abuses or documents uncovered in the process
                         are public record.
                         * There is no media scrutiny, publicly accountable judge, or jury
                         of one's peers.
                         * There is judicial review only in cases of outright fraud, not
                         judicial error.

                         The first "HMO Arbitration Abuse Report" is Peter Berman of
                         Los Angeles whose wife died of cancer due to HMO
                         cost-cutting. Berman did not know until his wife Renee's medical
                         problems developed that his HMO, Health Net, would claim the
                         family had signed away their right to trial
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