June 22, 2004

Supreme Court unanimously rejects efforts by states to give patients in managed care ability to sue managed-care companies for damages for refusing to cover doctor-ordered medical treatment, a right that Congress has so far declined to provide; rules that laws of Texas and nine other states are pre-empted by federal law known as Erisa, which applies to employment-based health care plans that cover 140 million people; it allows patients to sue for reimbursement of denied benefits, but not for damages stemming from denial; as such, it bars conventional medical malpracice suit against typical health maintenance organization or managed-care company; ruling returns issue to Congress, which for years has wrestled with but failed to pass national 'patients' bill of rights'; Bush administration joined two managed-care companies in their appeal of lower court ruling that had upheld Texas law (M)

MGM Mirage plans to build and manage casino in Macau, Chinese territory that is letting Western companies compete in its gambling market; says property will be jointly owned and managed by Shun Tak Holdings official Pansy Ho Chiu-King (S)

Gov John G Rowland of Connecticut, facing impeachment inquiry and federal corruption investigation, announces his resignation from office effective July 1; in short address, he evokes both his promising rise in politics and his tangled descent as he becomes first governor of his state to resign under pressure; he mentions his 'poor judgment' in one sentence; his personal relationships with people doing business with state is one subject of federal inquiry; aides insist that his resignation was driven by realization that at time when polls show two-thirds of state's residents want him to resign, even fellow Republican lawmakers would be loath to defend him against impeachment in their election year; resignation ends impeachment proceedings, but he still faces federal investigation; Lt Gov M Jodi Rell, Republican who was elected with him in 1994, will be sworn in as state's 87th governor, serving out remainder of Rowland's term; Kevin B Sullivan, Senate President pro tem and a Democrat, will succeed her as lieutenant governor; photo (M)

In Shift, Bush May Name a New Intelligence Chief The White House is said to be actively debating whether to select a permanent successor to George J. Tenet as director of central intelligence instead of leaving an acting director in place until the election. PAGE A8 Attacks Near Chechnya Heavy fighting erupted in a southern Russian region bordering Chechnya, as insurgents attacked security buildings in several cities. PAGE A4

Treasury decides to keep Under Sec Brian C Roseboro, who voted against $1.6 billion in federal loan guarantees for United Airlines, as its Air Transportation Stabilization Board member, dimming chances for carrier's new bid; United reportedly weighs seeking smaller guarantee for shorter period, while seeking more private financing; Treasury and air board officials say United is down to last bid and must seriously address repayment plans to win approval (M)