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Tort reform and health care

October 12th 2009 23:04
From CNN:

The Congressional Budget Office is now estimating that limits on medical malpractice lawsuits — reforms favored by many Republicans — could save the government as much as $54 billion over the next ten years.

In a recent CNN discussion, Dr. Sanjay Gupta stated that as much as 15% of health care costs come from lawsuits and the subsequent practice of defensive medicine by physicians. It seems to be a no-brainer that you can reduce costs by placing some limits on malpractice lawsuits. Surely, this is included as a provision in the Democrats' health care bills, right?

Wrong.

Why isn't it included? The American Trial Lawyers Association is one of the biggest financial supporters of the Democratic Party. As you can imagine, trial lawyers are adamantly against any limits on malpractice awards. The Democrats wouldn't even consider crossing these wealthy and generous contributors. The result? No limits on malpractice claims.

Until the Democrats are willing to do the right thing and stand up to their own self-serving campaign contributors, we should take their attempts to control health care costs with a grain of salt.

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4 Comments. [ Add A Comment ]

Comment by S.L.

October 12th 2009 23:43
I heard they were planning to vote on it tomorrow and pass it without letting anyone read it. Hopefully that's incorrect. The grain of salt might be attached to dynamite!

Comment by PopulistConservative

October 13th 2009 00:34
It wouldn't surprise me, SL. These bills are like rotten fish -- the longer they sit out, they more they stink.

Comment by Jim Stillman

October 13th 2009 12:52
I respectfully refer you to my post, written a year ago, and call attention to the examples of professional malpractice that are not limited, that by building contractors, lawyers, accountants and others.

Really Long Link

You may want to consider the fact that some states have placed draconian limits on medical malpractice lawsuits (Texas, New York, Florida for examples), and malpractice insurance premiums for physicians have not decreased!

My daughter and son-in-law are physicians in Florida, far more conservative than I. They agree that insurance industry greed is the culprit -- although they don't like lawyers either.

Comment by PopulistConservative

October 13th 2009 17:25
Jim, I agree with you about insurance company greed. I have no love for insurance companies. However, it's a fact that legal expenses contribute significantly to the cost of healthcare. Sanjay Gupta said so. The CBO said so. Probably only lawyers dispute it. Why is that? From what you're saying, it sounds like the insurance companies -- in those cases -- didn't pass along those savings to doctors despite the "draconian" limits on medical malpractice claims. If that's the case, Congress could address that through legislation as well. For example, they could require insurance companies to give a discount to physicians in states where malpractice limits exist. You could call it the "tort reform" discount or whatever. Consider it similar to a safe driving discount with car insurance. If there is a limit on malpractice claims, though, less money IS being spent. We just need to make sure that those savings filter down to consumers like you and me.

NOTE: This may also need to be addressed with doctors to encourage them not to practice defensive medicine and maybe have industry standards on what tests are appropriate in certain types of cases. This would help ensure that the savings from tort reform do actually make it down to consumers. Of course, this whole exercise is a trip through fantasyland since the Dems would never allow any limits on their trial lawyering buddies.

BTW, I haven't heard any suggestions that malpractice by contractors, accountants, and others contribute 15% or more to the cost of health care. If I had, this article would've been about them. I singled out lawyers because they do contribute so much to the cost of health care.

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