Michel
2009-10-10 17:04:38 UTC
news.google.com
http://www.washingtontimes.com/news/2009/oct/10/health-care-tort-reform-a-savings/
Report: Reining in lawsuits would cut deficit
More savings found in health care reform
Jennifer Haberkorn
Bolstering what's likely to be a key health care reform argument from
Republicans, Congress' budget scorekeeper ruled that limiting medical
malpractice lawsuits would reduce the federal deficit by $54 billion
over 10 years.
The Congressional Budget Office - in an analysis that projects a
nearly10-fold increase in savings over its findings last year - said
tort reform would cut costs by limiting the use of diagnostic tests
and other services health care providers and doctors use to reduce
exposure to lawsuits.
In explaining the increase in savings, CBO Director Douglas Elmendorf
told lawmakers "recent research has provided additional evidence that
lowering the cost of medical malpractice tends to reduce the use of
health care services."
Tort reform has been one of Republicans' top health care reform
proposals, but it hasn't been embraced by congressional Democrats.
President Obama, in his address to a joint session of Congress last
month, said he would consider tort reform legislation as part of his
health care plan.
"I think that this is an important step in the right direction and
these numbers show that this problem deserves more than lip service
from policymakers," said Sen. Orrin G. Hatch, Utah Republican, who
requested the analysis.
"Unfortunately, up to now, that has been all the president and his
Democratic allies in Congress have been willing to provide on these
issues."
The analysis was not tied to specific legislation, but cited reform
ideas such as limiting pain-and-suffering awards to $250,000, limiting
punitive damage awards at $500,000, limiting attorneys fees or
implementing a one- to three-year statute of limitation.
Such proposals would reduce national health care spending by about 0.5
percent, or $11 billion in 2009. That includes the reduction in
malpractice premiums as well as a 0.3 percent reduction in health care
services spending from providers ordering procedures out of concern
for being sued.
The group found that this year, health care providers will spend about
$35 billion on malpractice liability, including premiums and awards.
The American Association for Justice, a trial lawyers trade group,
said the news from CBO shows that there is limited financial gain and
much health risk at reforming medical malpractice laws.
The "findings reiterate what we've always known, that medical
malpractice claims have almost no effect on overall health care
spending," association President Anthony Tarricone said Friday. "Along
with the CBO's numbers and countless other academic assessments, the
vast majority of empirical evidence suggests that there are only
minuscule savings to be found in reforming our nation's civil justice
system."
The CBO said there was not enough evidence to determine whether
reforming medical malpractice laws, designed to let patients sue for
damages resulting from negligent care, would have a negative impact on
health outcomes. The group cited studies that showed mix results.
Republicans praised the $54 billion in potential savings.
"Doctors often order tests just to protect themselves from lawsuits,
not to treat patients," said Sen. Charles E. Grassley of Iowa, the top-
ranking Republican on the Finance Committee. "The more federal health
care programs spend on unnecessary tests, the less money is available
for necessary patient care."
Mr. Grassley also criticized Democrats for not including tort reform
in their health reform bills, though any substantial tort plan would
likely have to go through the Judiciary Committee, which doesn't have
jurisdiction over health care reform.
"It makes no sense that congressional Democrats have taken malpractice
reform off the table," he said, citing the $54 billion figure. "That's
not chump change. It's a no-brainer to include tort reform in any
health care reform legislation."
Finance Committee Chairman Max Baucus denied a Republican amendment to
add tort reform to his health care plan during his markup session,
arguing that it wasn't in the committee's jurisdiction.
Previously, CBO focused its analysis on similar tort reform measures
on malpractice insurance premiums. This was the first time CBO based
its analysis on how tort reform would affect doctors' use of health
care services, based on recent research.
http://www.washingtontimes.com/news/2009/oct/10/health-care-tort-reform-a-savings/
Report: Reining in lawsuits would cut deficit
More savings found in health care reform
Jennifer Haberkorn
Bolstering what's likely to be a key health care reform argument from
Republicans, Congress' budget scorekeeper ruled that limiting medical
malpractice lawsuits would reduce the federal deficit by $54 billion
over 10 years.
The Congressional Budget Office - in an analysis that projects a
nearly10-fold increase in savings over its findings last year - said
tort reform would cut costs by limiting the use of diagnostic tests
and other services health care providers and doctors use to reduce
exposure to lawsuits.
In explaining the increase in savings, CBO Director Douglas Elmendorf
told lawmakers "recent research has provided additional evidence that
lowering the cost of medical malpractice tends to reduce the use of
health care services."
Tort reform has been one of Republicans' top health care reform
proposals, but it hasn't been embraced by congressional Democrats.
President Obama, in his address to a joint session of Congress last
month, said he would consider tort reform legislation as part of his
health care plan.
"I think that this is an important step in the right direction and
these numbers show that this problem deserves more than lip service
from policymakers," said Sen. Orrin G. Hatch, Utah Republican, who
requested the analysis.
"Unfortunately, up to now, that has been all the president and his
Democratic allies in Congress have been willing to provide on these
issues."
The analysis was not tied to specific legislation, but cited reform
ideas such as limiting pain-and-suffering awards to $250,000, limiting
punitive damage awards at $500,000, limiting attorneys fees or
implementing a one- to three-year statute of limitation.
Such proposals would reduce national health care spending by about 0.5
percent, or $11 billion in 2009. That includes the reduction in
malpractice premiums as well as a 0.3 percent reduction in health care
services spending from providers ordering procedures out of concern
for being sued.
The group found that this year, health care providers will spend about
$35 billion on malpractice liability, including premiums and awards.
The American Association for Justice, a trial lawyers trade group,
said the news from CBO shows that there is limited financial gain and
much health risk at reforming medical malpractice laws.
The "findings reiterate what we've always known, that medical
malpractice claims have almost no effect on overall health care
spending," association President Anthony Tarricone said Friday. "Along
with the CBO's numbers and countless other academic assessments, the
vast majority of empirical evidence suggests that there are only
minuscule savings to be found in reforming our nation's civil justice
system."
The CBO said there was not enough evidence to determine whether
reforming medical malpractice laws, designed to let patients sue for
damages resulting from negligent care, would have a negative impact on
health outcomes. The group cited studies that showed mix results.
Republicans praised the $54 billion in potential savings.
"Doctors often order tests just to protect themselves from lawsuits,
not to treat patients," said Sen. Charles E. Grassley of Iowa, the top-
ranking Republican on the Finance Committee. "The more federal health
care programs spend on unnecessary tests, the less money is available
for necessary patient care."
Mr. Grassley also criticized Democrats for not including tort reform
in their health reform bills, though any substantial tort plan would
likely have to go through the Judiciary Committee, which doesn't have
jurisdiction over health care reform.
"It makes no sense that congressional Democrats have taken malpractice
reform off the table," he said, citing the $54 billion figure. "That's
not chump change. It's a no-brainer to include tort reform in any
health care reform legislation."
Finance Committee Chairman Max Baucus denied a Republican amendment to
add tort reform to his health care plan during his markup session,
arguing that it wasn't in the committee's jurisdiction.
Previously, CBO focused its analysis on similar tort reform measures
on malpractice insurance premiums. This was the first time CBO based
its analysis on how tort reform would affect doctors' use of health
care services, based on recent research.