Report: Limiting medical lawsuits could save $41B
WASHINGTON — Limits on medical malpractice lawsuits would lead doctors to order up fewer unneeded tests and save taxpayers billions more than previously thought, budget umpires for Congress said Friday in a reversal that puts the issue back in the middle of the health care debate.
The latest analysis from the nonpartisan Congressional Budget Office estimates that government health care programs could save $41 billion over ten years if nationwide limits on jury awards for pain and suffering and other similar curbs were enacted. Those savings are nearly ten times greater than CBO estimated just last year.
“Recent research has provided additional evidence that lowering the cost of medical malpractice tends to reduce the use of health care services,” CBO Director Douglas Elmendorf wrote lawmakers, explaining the agency’s shift. Previously, CBO had ruled that any savings would be limited to lower malpractice insurance premiums for doctors, saying there wasn’t clear evidence physicians would also change their approach to treatment.
On Friday, Elmendorf essentially acknowledged what doctors have been arguing for years: fear of being sued leads them to practice defensive medicine. Some doctors will order a $1,500 MRI for a patient with back pain instead of a simple, $250 X-ray, just to cover themselves against the unlikely chance they’ll be accused later of having missed a cancerous tumor.
Republicans immediately called for liability limits to be incorporated in the health care overhaul legislation advancing in Congress. The Senate Finance Committee bill now gives a nod of recognition to doctors’ concerns, but little more. Heeding a call from President Barack Obama, the legislation calls for promoting state experiments with programs to resolve cases before they go to court.
“The more federal health care programs spend on unnecessary tests, the less money is available for necessary patient care,” said Sen. Charles Grassley of Iowa, the ranking Republican on the Finance Committee. “Cutting medical liability costs would help preserve patients’ access to care. “
Tens of billions of dollars in savings is “not chump change,” added Grassley. “It’s a no-brainer to include tort reform in any health care legislation.”
However, Republicans were unable to pass malpractice limits when they controlled Congress and the White House, and it’s unlikely that Democrats would do so now.
For one thing, trial lawyers who file malpractice lawsuits have traditionally been heavy contributors to Democratic politicians.
But also, patient advocates argue that fixed limits on jury awards as in California and some states are unfair to those who have suffered the most harm because of a doctor’s negligence. A patient who was given the wrong drug and had to spend several days in the hospital recovering from a bad reaction would likely be able to collect adequate compensation. But a family whose youngster was left brain damaged by an anesthesiologist’s mistake probably would not be able to offset all the costs of lifelong care.
Obama has tried to straddle the argument, siding with the doctors on defensive medicine and agreeing with the lawyers who say limits on jury awards are the wrong remedy. He wants to promote alternatives to litigation; studies have shown anger over cover-ups by doctors is a principal reason that families sue.
Trial lawyers said Friday the projected malpractice savings have to be viewed in the context of the $2.5 trillion a year the U.S. spends on health care.
“Medical malpractice claims have almost no effect on overall health care spending,” said Anthony Tarricone, president of American Association for Justice, which lobbies for lawyers. “The vast majority of empirical evidence suggests that there are only minuscule savings to be found in reforming our nations civil justice system.”
But the CBO report means the malpractice issue will stay alive as the health care debate in Congress builds to a climax this year. The budget scorekeepers estimated the total effect of malpractice curbs could reduce the federal deficit by $54 billion over 10 years, once $13 billion in new tax revenues from economic ripple effects are taken into account.
Even in the health care debate, that’s real money.
On the Net: www.cbo.gov
Related News
Health care issues: Calculating the price tagSeptember 17th, 2009 Health care issues: Calculating the price tagA look at key issues in the health care debate:
THE ISSUE: Is the Congressional Budget Office doing an accurate job of calculating how much the health care overhaul will cost?
THE POLITICS: Democrats pushing for overhaul of the nation's health care system face a dilemma — they want to cover as many people as generously as possible, while limiting the cost to deflect Republican accusations that they are addicted to spending and tax increases. That makes every dollar count.
Obama opens the door to compromise on alternatives to malpractice litigationSeptember 11th, 2009 Health negotiators look at malpractice changesWASHINGTON — Following President Barack Obama's offer of compromise on an issue that has long divided Washington, congressional health care negotiators are considering proposals to foster alternatives to medical malpractice lawsuits. The possibility that malpractice changes could be part of health care legislation that suddenly seems to have better chances of passing has sent doctors and trial lawyers scrambling.
Obama says 'defensive medicine' could be bringing higher medical costsSeptember 9th, 2009 Obama to look at medical malpractice changesWASHINGTON — In his appeal to Congress for health care reform, President Barack Obama isn't ignoring calls for changes in medical malpractice laws. Obama told lawmakers and a national TV audience Wednesday night that he wants to look at a "range of ideas" to "put patient safety first and let doctors focus on practicing medicine."
Obama says some in Congress believe medical malpractice reform can help bring down health care costs.
A look at the main points of Obama's health care speechSeptember 9th, 2009 A look at the points in Obama's speechA look at key points in Obama's health care speech:
—Individuals would be required to carry basic health insurance. Those who can't afford it would get a hardship waiver.
Colo. budget cuts call for plan to release 15 percent of state's prison populationSeptember 1st, 2009 Budget cuts accelerate prison reform in ColoradoDENVER — Colorado officials plan to release roughly 15 percent of the state's 23,000 prisoners early to help slash millions of dollars from the state budget. Department of Corrections spokeswoman Katherine Sanguinetti says budget cuts that took effect Tuesday call for the release of 3,500 inmates in Colorado prisons during the next two years.
White House, Congress both predict $1.6 trillion deficit, differ on longer-term shortfallAugust 25th, 2009 Congress projects smaller deficit than White HouseWASHINGTON — Congressional budget analysts project a cumulative $7 trillion deficit from 2010-2019, a figure roughly $2 trillion less than the one projected by the White House budget office. The nonpartisan Congressional Budget Office, in a report that came out on the same day as the White House midyear budget review, said the deficit this year will total $1.6 trillion and that putting the nation on a sustainable fiscal course will require a mix of lower spending and higher tax revenues than the amounts now projected.
Countrywide loses effort to have dispute over investor lawsuits heard in NY's federal courtAugust 20th, 2009 NYC judge returns investor lawsuits to state courtNEW YORK — A judge has rejected mortgage lender Countrywide Financial's effort to have some investor lawsuits heard in federal court. Judge Richard Holwell in Manhattan concluded in a decision released Tuesday that Congress did not intend for a federal court to hear a dispute over the mortgage lender's promise to buy back modified loans from investors.
DC faces sanctions over handling of evidence in IMF-World Bank protesters' lawsuitsJuly 30th, 2009 Judge criticizes DC lawyers over IMF protest caseWASHINGTON — A judge says he's shocked by how attorneys for the District of Columbia have handled evidence in lawsuits from hundreds of protesters arrested during a demonstration at the International Monetary Fund and World Bank. U.S. District Judge Emmet G.
Legislative leaders, Gov. Schwarzenegger set to discuss final details on California's budgetJuly 19th, 2009 Calif. lawmakers, Schwarzenegger to discuss budgetSACRAMENTO, Calif. — California officials are set for talks they hope will iron out the final details to closing the state's $26.3 billion budget deficit.
Obama tries to win doctors' support of health-care overhaul, disappoints them on malpracticeJune 15th, 2009 Obama presses doctors to back health care overhaulCHICAGO — President Barack Obama bluntly told doctors Monday he opposes their highest legislative priority — limiting malpractice awards — and got a smattering of boos from an audience he was here to court for his health care overhaul plan. Vigorously defending the plan to reshape the nation's health care system and extend coverage to millions who don't have it, he also took on "naysayers," ''fear-mongers" and other critics who he said are falsely portraying his effort as a big step toward a national government program.
Obama budget proposes $58 billion in tax measures to offset errors in revenue projectionsMay 11th, 2009 Obama wants $58 billion in taxes to offset errorsWASHINGTON — The Obama administration on Monday proposed $58 billion in additional taxes to offset budgeting errors that overstated revenues in the president's plan to finance health care reform. The tax measures target a host of activities, including people who for tax purposes aggressively reduce the value of property received as gifts or in estates.
Obama's Day: Budget remarks, education meeting, Russian foreign minister visit on ThursdayMay 9th, 2009 Obama's Day: Budget, education, Russian relationsWASHINGTON — President Barack Obama this morning will talk about how much of the taxpayers' money he plans not to spend in the first budget of his young administration. The president has signed off on 121 cuts totaling $17 billion in his 2010 budget.
US Congress approves Obama's 2010 budget outlineApril 30th, 2009 WASHINGTON - The US Congress Wednesday approved President Barack Obama's $3.56-billion budget prescriptions for 2010 along strictly party lines. The Senate voted 53-43 and the House of Representative 233-193 for the non-binding resolution, which sets out the framework for Congress to consider Obama's legislative priorities, including tax cuts for the middle class and an expansion of social spending in health care, energy and education.
Federal workers, have any good ideas to tighten federal belt? Obama wants to hear from youApril 25th, 2009 Obama: Give me ideas on tightening federal beltWASHINGTON — Think you can do better than your federal boss? President Barack Obama wants to know how. Obama on Saturday announced a plan for federal workers to propose ways to improve their agencies' and departments' budgets.
Budget maintains 'constitutional propriety': CongressFebruary 15th, 2009 NEW DELHI - External Affairs Minister Pranab Mukherjee did not present a populist budget as the United Progressive Alliance (UPA) government had done a 'tremendous job' and does not need to play to the gallery, the ruling Congress maintained Monday. Mukherjee observed 'constitutional propriety' while presenting the interim budget, Congress spokesperson Manish Tewari said.
Loading ...