House Panels Pass Medical
Malpractice Legislation
March 7, 2003 - Legislation that would reform the
medical liability system moved closer to final passage in
the House this week as the Energy and Commerce and Judiciary
committees passed the AAMC-supported "Help Efficient,
Accessible, Low Cost, Timely Health Care (HEALTH) Act"
(H.R.
5). The Energy and Commerce Health Subcommittee March
4 approved the bill by voice vote. The Judiciary Committee
March 5 approved the bill along party lines by a vote of 15-13.
The full Energy and Commerce Committee approved the bill by
voice vote on March 6.
The HEALTH Act was introduced by Reps. Jim Greenwood (R-Pa.)
and Christopher Cox (R-Calif.) in response to rapidly rising
malpractice premiums nationwide. The HEALTH Act would cap
awards for non-economic damages ("pain and suffering")
at $250,000 and limit punitive damage awards to the greater
of $250,000 or twice the economic damages award. The bill
would also limit an attorney's contingency fees, establish
a statute of limitations, and hold defendants responsible
only for their "fair share" of damages. It would
allow periodic payment of awards for certain providers and
prohibit double-recovery of damages.
Simultaneous to the mark-ups, the Health Care Liability Alliance
(HCLA), American Medical Association (AMA), and Bush Administration
released reports reiterating the need for medical liability
reform. The AAMC is a member of HCLA and is collaborating
with the AMA in advocating for passage of H.R. 5. The Bush
Administration has been a vocal supporter of the provisions
in the bill.
The AMA report
indicates that the liability crisis had expanded to include
six more states (Arkansas, Connecticut, Illinois, Kentucky,
and Missouri). In June 2002, the AMA had identified Florida,
Georgia, Mississippi, New Jersey, Nevada, New York, Ohio,
Oregon, Pennsylvania, Texas, Washington, and Virginia as states
"in crisis." According to data released by HCLA,
over 8 in 10 Americans believe the liability crisis is limiting
access to care. Approximately 71 percent of those surveyed
identified medical liability lawsuits as one of the primary
forces behind increases in healthcare costs. According to
the survey, which was conducted by Wirthlin Worldwide, Americans
would support legislation that reasonably limits awards for
non-economic damages, and they would favor limits on lawyers'
contingency fees.
A March 3 HHS report
on the need for medical liability reform ("Addressing
the New Health Care Crisis") reiterated the Administration's
concern about rising malpractice premiums and their support
for the reforms outlined in H.R. 5. Blaming the "excesses
of the litigation system," HHS reports that the liability
crisis "has only worsened" since their last report
on the issue (July 2002). Ways and Means Committee Chairman
Bill Thomas (R-Calif.) echoed the Administration's concerns
in a March 3 letter to the General Accounting Office (GAO).
Chairman Thomas and Ways and Means Health Subcommittee Chairwoman
Nancy Johnson (R-Conn.) have asked the GAO to study the cost
of "defensive medicine" in the Medicare program.
Among the other information they requested is an analysis
of whether Medicare physician reimbursement adequately accounts
for the cost of malpractice premiums.
Information:
Christiane Mitchell, Senior Legislative Affairs Manager
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526
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