Medical Liability Reform Issue Summary

Background
Concerns over the medical liability system have been brewing for years and have now reached crisis levels in many states. An alarming number of insurers have left the medical liability market, resulting in liability premiums that are rising for medical specialties not typically associated with high risk, including cardiology. Suffering most from this liability crisis are patients. Growing medical liability premiums are forcing cardiology practices to make tough decisions that ultimately affect the delivery of care

There are now at least 20 states that are considered to be in a liability crisis and many more are on the verge. These states lack the fundamental reforms that provide for a stable liability system. The scope of the medical liability crisis is such that it requires a federal solution. The problem now touches nearly every American as costs from our current medical litigation system are passed on in other forms of health care costs.

At least one factor is widely believed to be contributing to rising medical liability premiums — litigation costs. A relatively small percentage of medical liability cases filed ever go to trial, but it costs an average of $24,699 just for physicians to defend a claim. At the root of the problem, however, is the unrestrained escalation of jury awards. The legal system has turned our medical liability system into a lawsuit lottery. The number of claims is rising, as is the size of the awards. According the Jury Verdict Research, the median medical liability jury award in medical malpractice cases jumped 176 percent from 1994 to 2001, topping $1 million.

Legislative Action
Federal Legislative Activities
House—On May 12, 2004, the House passed H.R. 4280, the "Help Efficient, Accessible, Low-cost, Timely Health Care (HEALTH) Act," by a vote of 229 to 197, with 15 Democrats joining Republicans in support of the bill. Passage of H.R. 4280 marked the eighth time that medical liability reform legislation has passed the House since 1995. The outcome of the May 12 vote closely mirrored a vote a year ago on an identical bill, H.R. 5, both of which are supported by the ACC.

H.R. 4280, introduced by Rep. Jim Greenwood, R-Pa., includes medical liability reforms that are similar to those remedies that have kept the market stable in California since its enactment of tort reform in 1975, including a cap on non-economic damages and the elimination of joint and several liability.

Senate—The Senate defeated two attempts early in 2004 to pass legislation that would have provided liability protections to select high-risk specialties. On April 7, a Senate vote to bring up S. 2207, the “Pregnancy and Trauma Care Access Protection Act of 2004” failed by a vote of 49 to 48, short of the 60 votes needed to proceed to consideration of the bill. The bill would have provided liability protections, including a $250,000 cap on non-economic damages, for emergency and trauma services and obstetrical and gynecological (ob-gyn) care. On Feb. 24, the Senate defeated S. 2601 that would have applied to ob-gyn services only. The ACC supported both S. 2207 and S. 2061 as an incremental step toward medical liability reform for all patients and all physicians.

The Senate also blocked consideration of a comprehensive medical liability reform bill, the "Patients First Act" (S. 11), last July by a vote of 49-48. Every Democrat, with the exception of three who didn't vote, and two Republicans voted against bringing the bill up for formal consideration on the Senate floor. Those Democrats not voting included Sens. Bob Graham, Fla., John Kerry, and Zell Miller, Ga. The two Republicans voting against the bill were Lindsey Graham, SC, and Richard Shelby, Ala.

ACC Activities
Last year, after partisan politics once again stood in the way of medical liability reform in the U.S. Senate, the ACC and other physician specialty organizations, deciding it was time to mount a hard-hitting campaign, came together and formed Doctors for Medical Liability Reform (DMLR). DMLR includes 10 physician specialty organizations and represents more than 230,000 practicing physicians. In February, DMLR launched its Protect Patients Now campaign. The campaign is designed to educate and inform patients, physicians, business leaders and lawmakers about the destructive effects that the medical liability crisis is having on this country’s health care system, with the ultimate goal of achieving the enactment of federal medical liability reform that includes an effective cap on noneconomic damages. More information about the campaign can be found at www.ProtectPatientsNow.org.

To obtain more information about medical liability reform and the ACC’s involvement, check out the ACC’s Medical Liability Reform Resource Center at 1-800-253-4636, ext. 694.

Outlook
It is possible that the Senate will hold another vote on medical liability legislation before the end of the legislative session, however, achieving enactment of federal medical liability reform will require a sustained, multi-year effort in which the ACC and its members will continue to play a vital role.

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