Under that test, courts look to state law to see if the state intended to preclude federal bankruptcy court jurisdiction. As a result, state legislatures effectively may be able to preclude federal bankruptcy court jurisdictions over health maintenance organizations by adopting preclusive statutory language. The Model HMO Act and the Model Insolvency Act contain language supporting state court jurisdiction. The language added by Georgia certainly promoted state jurisdiction in the Master Health case. Notwithstanding the trend towards state court jurisdiction over insolvencies of health maintenance organizations, health maintenance organizations likely will continue to seek federal bankruptcy protection.
Several commentators advocate federal bankruptcy jurisdiction over health maintenance organizations.
See Resnik, pp. Accordingly, these issues will continue to be subjects of litigation and legislative action. 3343 Peachtree Road . Atlanta, GA . All rights reserved.