[Congressional Record Volume 141, Number 44 (Thursday, March 9, 1995)]
[Extensions of Remarks]
[Page E568]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E568]]
              THE HEALTH CARE LIABILITY REFORM ACT OF 1995

                                 ______


                             HON. BOB STUMP

                               of arizona

                    in the house of representatives

                        Thursday, March 9, 1995
  Mr. STUMP. Mr. Speaker, today I am introducing the Health Care 
Liability Reform Act to establish fundamental tort system reforms.
  This legislation will: set a $250,000 cap on noneconomic and punitive 
damages; limit attorneys fees to 25 percent of the first $100,000 and 
reduce the allowable percentage as the award increases; eliminate the 
collateral source rule that allows for double recovery; abolish joint 
and several liability, so only defendants who are actually at fault are 
liable; require periodic payment of damages over $50,000; establish a 1 
year reasonable discovery rule and 3 year statute of limitation with 
special exceptions for minors; and require pretrial dispute resolution 
to encourage reasonable settlement.
  Our current medical malpractice system is not effective in 
compensating injured individuals or at improving the quality of health 
care. It is a system with powerful incentives for wasteful spending. 
Plaintiffs are allowed to sue even if the facts do not merit a lawsuit 
and cash payments of 3 to 4 times claimants' medical bills are awarded. 
The median verdict in medical liability claims, according to a Jury 
Verdict Research report jumped by almost $200,000 in one year from an 
all time high in 1991 of $450,000 to $646,487 in 1992. The General 
Accounting Office reported that over half of total health care 
liability costs are spent defending against claims that result in no 
payment. A RAND Corp. study found that 57 percent of the money spent in 
health care liability litigation does not reach the injured patient.
  Physicians and hospitals are forced to provide care, not for the 
well-being of the patient, but to protect themselves from lawsuits. Our 
physicians are the best trained and equipped, yet they are also the 
most often sued. Claims against doctors rose form 2-per-100 in the 
1960's to 16-per-100 in the late 1980's. Physicians fearing malpractice 
suits are increasingly opting out of high-risk specialties and medicine 
altogether. Those hurt most are disadvantaged pregnant women, rural 
communities and senior citizens.
  Medical malpractice liability adds at least $15 billion a year to the 
cost of health care, according to a recent study by the Competitiveness 
Center of the Hudson Institute. It is driving up the cost of 
treatments, services, medical devices and pharmaceuticals and inhibits 
the research and development of new products. It is a detriment to 
patients, providers and taxpayers. If we allow this litigation 
explosion to continue unrestrained, any effort to bring down health 
care costs and increase access to care will surely fail.


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