GOP heath care bill would tighten limits on medical malpractice suits
WASHINGTON — Low-income people and older Americans would find it more difficult to win lawsuits for injuries caused by medical malpractice or defective drugs or medical devices under a bill drafted by House Republicans as part of their plan to replace the Affordable Care Act.
The bill would impose new limits on lawsuits involving care covered by Medicare, Medicaid or private health insurance subsidized by the Affordable Care Act. The limits would apply to some product liability claims, as well as to medical malpractice lawsuits involving doctors, hosthat the bill would reduce fedpitals and nursing homes. eral budget deficits by almost
Sean Spicer, the White $50 billion over 10 years. House press secretary, said Under the bill, the budget the bill would limit “frivolous office said, doctors would lawsuits that unnecessarily slightly decrease the use of drive up health care costs.” diagnostic tests and other
But Democrats and plainservices that they perform tiffs’ lawyers said it would to reduce their exposure to take rights away from peolawsuits. Doctors have long ple served by federal health said such “defensive mediprograms. cine” adds to the cost of care.
In renewing their effort to But Rep. Jamie Raskin, devise a replacement for the D-Md., said the bill would deny Affordable Care Act, Repubfull restitution to many victims licans say one chief aim is to of medical malpractice. Rep. slow the growth of health Steve Cohen, D-Tenn., said spending. Rep. Bob Goodthe bill’s restrictions would latte, R-Va., the chairman apply even in cases of “egreof the House Judiciary Comgious medical error,” such mittee, said the malpractice as when a foreign object is limits would reduce health left inside a patient’s body costs, increase access to care or surgery is performed on and save taxpayers billions the wrong body part. of dollars. Kimberly A. Valentine, a law
The nonpartisan Congresyer in Orange County, Calif., sional Budget Office estimates who has represented scores of nursing home residents, said the House bill “would make it much more difficult for victims of elder abuse to seek redress and would eliminate one of the most powerful tools we have to improve care in nursing homes.”
T h e b i l l w o u l d s e t a $250,000 limit on “noneconomic damages,” which include compensation for pain and suffering, though states could set different limits.
California has long had a $250,000 cap on noneconomic damages in medical malpractice cases. But under state law, elder abuse cases are exempt from the limit. The bill would not limit a patient’s ability to recover economic damages for medical expenses or lost earnings. If more than one defendant was responsible for an injury, the jury would award damages against each one in proportion to the share of responsibility.
The bill says a doctor who prescribes a drug or medical device “approved, licensed or cleared by the Food and Drug Administration” may not be named in a product liability lawsuit against the manufacturer or seller of the product. The bill provides similar protection for pharmacists who fill prescriptions. It would restrict contingency fees that lawyers can charge for representing plaintiffs in health care lawsuits.
The measure would limit claims related to coverage provided “via a federal program, subsidy or tax benefit.” Brian K. Atchinson, president of the Physician Insurers Association of America, a trade group for insurers, said that means the House bill would apply to health insurance provided by employers, because the federal government provides a tax break for such coverage. The tax-free treatment of employer-provided health benefits is one of the largest tax breaks in the tax code, costing the government more than $150 billion a year in lost revenue, according to the Congressional Research Service.
The costs of the medical malprac tice system have been hotly debated for years. Studies suggest the costs, including damage awards, legal fees and the effects of defensive medicine, represent 2 percent to 2.5 percent of national health spending.