[Congressional Record Volume 140, Number 146 (Saturday, October 8, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                 MEDICAL MALPRACTICE REFORM ACT OF 1994

                                 ______


                          HON. CASS BALLENGER

                           of north carolina

                    in the house of representatives

                        Friday, October 7, 1994

  Mr. BALLENGER. Mr. Speaker, I am pleased to introduce the Medical 
Malpractice Reform Act of 1994. This legislation takes a first step 
toward solving one of the major reasons for the high cost of medicine--
malpractice lawsuits and the malpractice insurance that doctors must 
carry to protect themselves from bankruptcy.
  Reports from the Department of Health and Human Services indicate 
that due to the large number of suits filed against physicians, most 
doctors have begun to practice so-called defensive medicine--ordering 
additional tests, consultations, or procedures to protect themselves. 
This defensive medicine is estimated to cost $17 to $21 billion 
annually, raising the cost of health care by that amount. In addition, 
the cost of medical liability insurance is so high in some fields that 
physicians are avoiding high risk specialties, such as obstetrics, 
where between 70 and 80 percent of all practitioners have been sued. In 
addition to raising health care costs, this threatens the mere 
availability of health services.
  I certainly agree that we need to put a stop to the ever increasing 
amount of medical malpractice litigation. While the lawyers get richer, 
doctors and their patients pay the price. A recent Washington Times 
quoted former Health, Education and Welfare Secretary Joseph Califano 
who said:

       Congress dances around the medical malpractice protection 
     racket for fear of alienating the American Trial Lawyers 
     Association * * * In the Beltway bubble, the disgust of the 
     American people with lawyers and the malpractice system isn't 
     heard above the clutter of political contributions.

  The Medical Malpractice Reform Act takes four simple steps toward 
reforming medical malpractice. The first step would be a cap on 
noneconomic and punitive damages. Patients would still be able to 
recover 100 percent of the cost of their medical bills, along with lost 
wages, and other out-of-pocket expenses related to medical malpractice. 
A cap of $250,000 would be placed on noneconomic awards.
  Second, the bill requires disclosure of other financial benefits 
received from other sources so that juries may factor this into the 
total damage award.
  Third, a limit is placed on attorney contingency fees and other costs 
under medical malpractice claims. This way, patients, not attorney's 
receive the majority of the awards. Currently, around 40 percent of 
every dollar spent on medical liability litigation actually reaches the 
patients.
  Fourth, the bill allows for periodic payments of the claim. This 
payment would be guaranteed, but spread out over a period of time to 
preserve funds for medical treatment and future income needs.

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