High Quality Content by WIKIPEDIA articles! Aetna Health Inc. v. Davila, 542 U.S. 200 (2004) United States Supreme Court case that limited the scope of the Texas Healthcare Liability Act. The effective result of this decision was that the "Texas Healthcare Liability Act" (THCLA) that held utilization review decisions by Managed Care entities to a legal duty of care according to the laws of Medical practice in Texas, could not be enforced in the case of Health Benefit plans provided through private employers, because the Texas statute allowed compensatory or punitive damages to redress losses or deter future transgressions, which were not available under ERISA § 1132. The ruling still allows Texas to enforce the THCLA in the case of government-sponsored, church-sponsored, or individual health plan policies, which are saved from preemption by ERISA.

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