Medical Liability Reform
Medical Liability Reform Legislation Clears House Committee (June 2011)The House Energy and Commerce Committee reported favorably the “Help, Efficient, Accessible, Low-Cost Timely Healthcare Act (HEALTH) of 2011 (H.R. 5) on May 23. The legislation previously cleared the House Judiciary Committee on March 17. H.R. 5 would reform the current medical liability system by creating a $250,000 cap on non-economic damages, establishing a fair share rule, limiting attorney contingency fees and limiting punitive damages, among other things. While H.R. 5 has been approved by both committees of jurisdiction, it remains uncertain when the full House will consider the legislation. A report by the independent Congressional Budget Office (CBO) estimates H.R. 5 would reduce the federal deficit by $62 billion over 10 years. New Survey Shows the Extent of Medical Liability Claims Filed (August 2010)
According to a recent survey by the American Medical Association (AMA), 42 percent of physicians had a medical liability claim filed against them at some point in their careers. The survey, which was conducted in 2007 and 2008, found an average of 95 medical liability claims filed for every 100 physicians. The survey found a variation in claims by age, gender, specialty and practice setting. General surgeons and obstetricians/gynecologists had the highest number of claims filed against them, while pediatricians and psychiatrists experienced the lowest number of claims filed. The survey went on to find that the average defense cost per claim was $40,000, with cases going to trail averaging around $100,000 to defend. Medical Liability Insurance Reform Takes Step Back in Illinois (February 2010)
The Illinois Supreme Court held on February 4 that the state’s statutory limit on noneconomic damages in medical malpractice actions is unconstitutional. The Illinois state law that was struck down created a $500,000 cap on physician medical liability and a $1 million dollar cap on hospital medical liability. The Illinois court handed down a similar ruling in 1997. This decision is significant in that it is unlikely that the current Congress will establish caps on noneconomic damages and represents a significant erosion in advancements that have been made over the past few years. The ACOI will continue to monitor this and other issues that impact efforts to advance tort reform. Medical Liability Reform Legislation Would Save Billions (November 2009)
According to a report recently released by the non-partisan Congressional Budget Office (CBO), enacting federal medical malpractice reforms would save Medicare, Medicaid and other federal programs $41 billion over 10 years. In addition, the report found that enactment of comprehensive medical liability reform would add $13 billion in federal income tax receipts. As a result, the CBO estimates that medical liability reform would reduce the federal deficit by a total of $54 billion. The CBO�s estimates where based on the adoption of a $250,000 cap on noneconomic damages; adoption of a uniform statute of limitations; adoption of a collateral source rule; and adoption of a $500,000 cap on punitive damages, among other things. The CBO estimates that medical malpractice liability costs for providers will reach about $35 billion or about 2 percent of total health care expenditures for 2009. �Trigger� Legislation Introduced with Medical Liability Reform (March 2008)
The �Medicare Funding Warning Response Act of 2008� (H.R. 5480, S. 2662) was introduced recently in the U.S. House of Representative and the U.S. Senate as required by law. Under federal law created by the Medicare Modernization Act (MMA)(Pub. L. 108-173), a formal warning must be issued if two consecutive annual reports show general revenue Medicare funding exceeds 45 percent of Medicare spending. This requirement was �triggered� by 2006 and 2007 funding numbers. Under federal law, the President must propose and Congress must introduce legislation to control Medicare spending. The proposal relies on value-based purchasing, medical liability reform and means-testing for Part D benefits. While both the House and Senate are required by law to consider the legislation, it is not expected to be approved.
Medical Liability Insurance Reform Legislation Introduced (June 2007)
U.S. Representative Phil Gingrey (R-GA) introduced the �Help Efficient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act of 2007� on Wednesday, June 6. The legislation, supported by the ACOI, reforms the current medical liability system by utilizing measures which have been proven over time to control the cost and increase the availability of medical liability insurance coverage. The bill accomplishes this by establishing consistent statutes of limitation; establishing a reasonable limitation on non-economic damages; applying a collateral source rule; limiting attorney contingency fees; and, among other things, allowing for the periodic payment of future damages. The legislation awaits further action. For additional information on medical liability insurance reform you may contact Tim McNichol at tmcnichol@acoi.org or by calling toll-free 1-800-327-5183.
ACOI Joins National Coalition to Address Medical Liability Insurance Reform (July 2006)
The ACOI joined the Health Coalition on Liability and Access (HCLA) to advance efforts to obtain medical liability insurance reform on the federal level. HCLA is a national coalition comprised of groups representing physicians, hospitals, health care insurers, businesses, health care consumers and others. The coalition is dedicated to advancing efforts to enact tort reform at the federal level. HCLA supports establishing caps on non-economic damages, limiting attorney contingency fees, allowing for the periodic payment of future damages, reforming the collateral source rule, establishing a uniform statute of limitations and reforming punitive damages, among other things. As a member of the coalition, the ACOI will be able to work with others to advance advocacy efforts to obtain meaningful tort reform. Further, the ACOI was able to secure a position on the governing board of the coalition, allowing for greater involvement in the direction of the HCLA. For additional information you may contact Tim McNichol at tmcnichol@acoi.org or by calling toll-free 1-800-327.5183.
U.S. Senate Fails to Approve Comprehensive Medical Liability Reform (May 2006)
The U.S. Senate held procedural votes on the �Medical Care Access Protection Act of 2006� (S. 22) and the �Healthy Mothers and Healthy Babies Access to Care Act� (S. 23) on May 8, 2006. Specifically, the Senate considered cloture motions to end debate and prevent filibusters of this important legislation, thus allowing the legislation to be considered for final approval. While 60 votes are required for a cloture motion to succeed, the votes on S. 22 and S. 23 failed by margins of 48 - 42 and 49 � 44 respectively. There was a significant number of senators who missed the vote on the cloture motions. The U.S. House of Representatives has approved comprehensive medical liability reform legislation on numerous occasions. S. 22 would establish a �stacked� cap on non-economic damages similar to legislation enacted in Texas allowing for a total of $750,000 in non-economic damage awards. The legislation would also establish a limitation on attorney contingency fees, provide for a uniform statute of limitations and allow for periodic repayment of future economic damages, among other things. S. 23 is nearly identical legislation to S. 22 but is limited in scope to health care providers who deliver obstetrical and gynecological services. For additional information you may contact Tim McNichol at tmcnichol@acoi.org or by calling toll-free 1-800-327-5183.
Medical Liability Reform Legislation Introduced (February 2007)
United States Senator John Ensign (NV) introduced the �Medical Care Access Protection Act of 2007� (MCAP)(S. 243). The legislation is similar to bills introduced in the past. S. 243 would create limitations on liability for non-economic damages; create a standard statute of limitations for medical liability claims; reform Rule 11 of the Federal Rules of Civil Procedure (FRCP); and, among other things, limit attorney contingency fees. In addition, Senator Judd Gregg (NH) introduced the �Healthy Mothers and Healthy Babies Access to Care Act� (S. 244). S. 244 contains provisions similar to S. 243, but the scope of the bill is limited to obstetrical and gynecological services. Both S. 243 and S. 244 have been referred to the Senate Committee on Health, Education, Labor, and Pensions where no further action has been taken.