[Congressional Record Volume 149, Number 100 (Wednesday, July 9, 2003)]
[Senate]
[Pages S9061-S9083]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PATIENTS FIRST ACT OF 2003--MOTION TO PROCEED
The PRESIDING OFFICER. Under the previous order, the Senate will
resume consideration on the motion to proceed to the consideration of
S. 11. Under the previous order, the time until 11:30 a.m. will be
equally divided between the majority leader and the minority leader or
their designees.
Mr. McCONNELL. Mr. President, the measure we are hoping to proceed
to, the Patients First Act of 2003, seeks to
[[Page S9062]]
address a major national crisis that confronts us in health care. Two
weeks ago, or right before the recess, the Senate and the House acted
on a major new health care proposal to modernize and preserve Medicare
and to add a prescription drug benefit for our seniors. Now the Senate
seeks to address another part of America's health care crisis--one the
House of Representatives has already dealt with--which is the question
of the rising cost of medical liability premiums, forcing physicians
out of certain specialties or, in the case of young physicians,
choosing not to go into such high-risk specialties as obstetrics
because they know they won't be able to afford the medical malpractice
premiums and still perform the service for which they have been
trained.
Last year, when we dealt with this issue, there were about 11 or 12
States that were in crisis. Now there are 19. There are only 6 of our
50 States that have no problem at all. All the rest are on the way to
having a major national crisis.
The underlying bill that we are seeking to get permission to go to--
the principal sponsor is Senator Ensign of Nevada, who is here to my
right and has been an active and major player in the legislation--is
very similar to the measure that passed the House. It is also supported
by the President of the United States. So we know that if we were to go
forward with a bill similar to this, it could get a Presidential
signature and we would be well on our way to dealing with this enormous
problem that is beginning to deny patients care all across our country.
So when the Senate has an opportunity to vote, I hope Members will
vote to invoke cloture on the motion to proceed so we can go to the
bill and begin to address this incredibly serious national problem.
I commend Senator Ensign for his leadership on this issue. His State
has certainly been one of those that has had an enormous crisis and
they are trying to deal with it at the State level. He can address
that. But the point is that this is a national problem that needs to be
dealt with by the National Government.
That is what we are seeking to do today: to get an opportunity to get
on to the bill and deal with this extraordinary health care crisis that
we have in the country.
I will have more to say later in the morning and particularly just
prior to the vote.
I yield the floor.
The PRESIDING OFFICER. The Senator from Nevada.
Mr. ENSIGN. Mr. President, I appreciate the words of the majority
whip. I rise today to speak on behalf of the bill that I have
introduced, the Patients First Act. The reason we call it the Patients
First Act is because it really does put patients first.
In our health care system today, we have too many patients who are
either close to being denied care or have been denied care simply
because physicians cannot afford the medical liability premiums they
are facing today.
My State, as the Senator from Kentucky mentioned, is one of those
States that is in crisis. Our State has a level I trauma center which
serves a four-State region, and last year that trauma center closed for
10 days. The closure of that trauma center was the only event in my
state of Nevada that brought the people who were against reforming our
medical liability system and our overall tort system and the proponents
of that reform together. This crisis allowed a special session of the
legislature to be called so they could try to deal with this situation.
I commend our Governor and State legislators for their efforts to deal
with the situation.
The problem in Nevada, as with other States that have enacted reform,
is it will take 6 to 10 years, depending on the length of the appeals
and the challenges to the law, before we know whether the bill will
actually take effect and have the result of lowering the costs for
medical liability insurance.
In the meantime, Nevada and many other States are losing doctors in
droves. Nevada is the fastest growing State in the country, and we
cannot afford the migration of doctors from our state to continue.
Speciality fields are the most severely affected by this crisis, and
of those, obstetrics and gynocology are of the most severely affected.
In southern Nevada, we have 5,000 to 6,000 new people a month moving
in. This increase in our population during this time of crisis has
resulted in three things happening.
One is we are losing doctors; two is new doctors are not coming to
replace them; and three is, the few ob/gyns who actually are staying,
when they were delivering 250 to 300 babies a year previously, they
have cut that number down to 125; 125 babies from 250 to 300. One can
do the math. It does not add up.
Additionally, many doctors who previously delivered babies in high-
risk pregnancies no longer can deliver them because their insurance
company will not cover them for that procedure. We are in a situation
where some of our best doctors are not able to give the care they are
are capable of giving.
I see my friend from Wyoming just arrived in the Chamber. Mr.
President, I say to him, I am going to take a couple more minutes and
then I will yield the floor.
This is not just a Nevada issue. As the Senator from Kentucky
mentioned, 19 other States are in crisis, and all but 6 States are
showing signs of heading into a crisis. In every State that is in
crisis or heading into a crisis, we hear the same kind of stories from
patients. It is a real problem, a problem the Senate must address. The
House has already dealt with it. Now the Senate must deal with it.
This crisis is a national problem. For Medicare, Medicaid, veterans,
60 percent of all the medical bills are paid through the Congress.
Because of that, it is a national issue and it requires the House of
Representatives and the United States Senate to act in concert to send
a bill to the President. The House has done its job. Now it is up to
the Senate.
I will share one or two quick anecdotes to illustrate real people who
have been touched by this issue.
During the closure of the level I trauma center in my home State of
Nevada, a woman and her father, Mr. Lawson, were in Las Vegas visiting
when this level I trauma center closed. The father had to be
transferred to a different emergency room, and on his way there,
unfortunately, this gentleman passed away.
Level I trauma centers are staffed with the most talented,
specialized people in the medical profession. We have trauma centers
specifically staffed by the best because they must save lives that are
in jeopardy every day. That trauma center closed because the
specialists could not afford the insurance, and they could not afford
the liability from the exposure of potential high-risk surgeries to
save lives.
The only way the legislature was able to open that trauma center
again is they covered the people who worked there under the umbrella of
the State.
By the way, when we talk about caps, my home state of Nevada has a
cap of $50,000 total for economic, non-economic and medical. It is a
total $50,000 cap, obviously much more severe than we would even think
to consider in this body. In the bill before the Senate today we have a
$250,000 cap on pain and suffering, but an unlimited amount on economic
damages and medical expenses, and if there is gross negligence, there
are punitive damages in this bill as well.
We think we have taken a balanced approach so that patients
throughout this country are not denied care, such as when the trauma
center in Nevada was forced to close, do not have to go through that
experience again. We have to ask the fundamental questions: How many
more people have to be denied care who really need it? How many more
people have to die in this country before this body will take action?
That is really the bottom line today. People are being denied care, and
more and more people will be denied the care they really need. That is
why this institution needs to act.
Mr. President, I yield the floor so the Senator from Wyoming may
speak.
The PRESIDING OFFICER. The Senator from Wyoming is recognized.
Mr. ENZI. Mr. President, I thank the Senator from Nevada. I always
appreciate his comments. He has one of the fastest growing States in
the Nation. I come from the most sparsely populated State in the
Nation. We have some very common problems.
[[Page S9063]]
In the last couple of days, we have heard a lot of discussion about
insurance companies. We have heard that medical liability insurers are
the source of the problem; that they are gouging doctors to make up for
investment losses.
Well, the Nasdaq index yesterday closed at its highest level since
April 2002. The Nasdaq is up more than 30 percent since the beginning
of the year. For that matter, the Dow Jones Industrial Average is up
more than 10 percent in 2003. Under the logic we have heard this week,
the stock market rebound ought to be leading to a sharp reduction in
medical liability premiums. So why aren't we seeing any relief?
We are not seeing any relief because insurance companies are paying
out more in losses than they are receiving in premiums. It is that
simple. It does not take an accountant to figure that out. For every
premium dollar collected in 2001, medical liability insurers
experienced $1.53 in losses. Ten years earlier, for every premium
dollar collected, insurers lost $1.03.
Regardless of investment gains or losses, the fact is that payments
for medical litigation judgments and settlements are rising much faster
than the incoming premium payments, even though premiums are escalating
dramatically. Insurance companies cannot make up the gap between the $1
they take in and the $1.53 they pay out without raising premiums. That
is why we are not seeing reductions in medical liability premiums,
despite the stock market's advance in 2003.
It all comes back to our legal system. It is simply out of control.
People who are truly injured by health care errors ought to receive
fair compensation. The problem is that our medical justice system is
completely out of whack. Doctors and hospitals live in constant fear of
litigation. They order unnecessary tests out of legal fear.
Doctors look at their patients as potential lawsuits, not people in
need of their help, because of this legal fear. They are forced to move
their practices to States that have reformed their legal systems. All
of this because of legal fear.
Some of my colleagues may have read a book that came out several
years ago, in 1995. The book was called ``The Death of Common Sense.''
The book was written by Philip Howard, a lawyer by training. His
premise was that American law and regulation are stifling human
judgment and good sense.
Well, Mr. Howard just published a new book, and I encourage my
colleagues to read it. It is called ``The Collapse of the Common
Good.'' In the book, he describes how law and regulation in America
create a warped sense of individual rights. In America today, people
use the concept of individual rights to bully other members of society,
using the threat of legal action as a weapon.
Some of what Mr. Howard has written is pertinent to this debate. For
instance, some of my colleagues believe that this legislation would
limit a patient's right to sue a doctor. We all believe that patients
who are truly injured deserve fair compensation. The problem is that
some personal injury lawyers are taking advantage of this belief to
bring all sorts of claims against doctors, whether the doctors are at
fault or not.
Let me share a passage from Mr. Howard's book. He writes on pages 22
and 23:
Like ancient Mayans accepting human sacrifice or Catholics
in the Middle Ages buying indulgences, Americans today accept
that being sued is the price of freedom, and that diving for
cover is the natural response to reasonable daily choices.
Our faith in individual rights keeps us from pausing even to
question this conception of justice. But should individual
rights include the right to go to court over a sandbox
disagreement involving 3-year-olds, or to milk the system
whenever there is a freak accident, or to scare towns and
school systems out of seesaws and peanut butter? The idea of
individual rights derives its moral force from the rhetoric
of liberty. But is this what our founders had in mind when
they organized a society around the freedom of each
individual?
Actually, no. Our founding fathers would be shocked. There
is no ``right'' to bring claims for whatever you want against
someone else.
Suing is a use of state power. A lawsuit seeks to use
government's compulsory powers to coerce someone else to do
something. Asserting individual rights sounds benign, like
praying in the church or synagogue of your choice. Sticking a
legal gun in someone's ribs, however, is not a feature of
what our founders intended as an individual right. The point
of freedom is almost exactly the opposite: We can live our
lives without being cowed by use of legal power. The
individual rights our founders gave us were defensive, to
protect our liberty. Liberty, we somehow forgot, does not
include taking away someone else's liberty. . . .
Courts are not supposed to be commercial establishments
where, for the price of a lawyer, anyone can buy a chance on
a raffle. Courts supposedly represent the wisdom of law,
overseeing when those powers can be used against others in a
free society. There's no right to sue except as the state
permits.
I can practically feel your confusion. How else can we
organize justice? People obviously have the ability to go to
court. But by what rules and standards? Our modern
consciousness is so focused on individual rights we can't
conceive of another way to ensure fairness. But if lawsuits
are recognized as an exercise of state power, perhaps the
state should make conscious judgments of who can sue for
what. That's what legal rules and interpretations are for.
That is what this debate is about. That is what this legislation
intends to do--make conscious judgments about who can sue and for what,
and the rules and limits under which medical lawsuits can go forward.
Is this bill a perfect bill? No. I have yet to see a perfect bill,
and I am in my seventh year in the Senate, following 10 years in the
Wyoming Legislature. But we ought to vote to begin this debate and move
on to the consideration of this bill, and the amendments to the bill,
so that we can address this medical liability crisis before it further
compromises the liberties of the people in Wyoming and the other
States, and especially their access to medical care.
We are debating whether to proceed to debate, whether to proceed to
begin the amendments which can even be whole substitutes to this bill.
So if my colleagues have a better idea, a way to solve this, they
should vote to proceed, then bring their amendments.
Our Declaration of Independence speaks to our unalienable rights, as
granted to us by our Creator, and that among these rights are life,
liberty, and the pursuit of happiness.
Well, it is pretty hard for an expectant mother in Wyoming to pursue
her happiness when she has to pursue her doctor for one more well-baby
check-up before he closes his practice and leaves for a State where
insurance premiums are lower.
There is another passage in Mr. Howard's book that is pertinent to
our discussion about limits on pain-and-suffering awards. The
statistics show that insurance premiums are lower in States with such
limits, but I have heard Members on the other side of the aisle argue
that the limit in this bill is too low, that it is unfair to someone
who is severely injured, despite the fact that the bill does not limit
in any way that person's right to recover every cent of the economic
damages that result from that injury.
Well, if the limit on pain-and-suffering awards in this bill is too
low, then what is the right amount?
I quote another passage from Mr. Howard's book, and I hope everybody
will read at least the first chapter of this book.
A great thing about bringing lawsuits in modern America is
that it is so easy to threaten the adversary's entire
livelihood. One stroke of the finger on the lawyer's word
processor, and damages go from $100,000 to $1,000,000. Three
more key strokes, and we're suing for a billion dollars. This
is fun.
What kind of justice system is it that allows someone to
make up an amount of money to demand? Is that a fact to be
``found'' by a jury? It doesn't even qualify as a value
judgment, which at least is a conclusion based on facts.
Damages claimed today are completely arbitrary. Just stick
your finger in the air and threaten someone with any number
that comes to mind.
Judges treat damage claims almost as if they are property,
and only with greatest reluctance intercede. In 1987, five-
year-old Gregory Strothkamp climbed up several shelves to the
top of the linen closet, got an unopened box of Q-Tips, and,
while trying to use them, punctured his eardrum. His parents
sued the maker of Q-Tips for, among other things, $20 million
in punitive damages. Whatever the merits of the argument that
Q-Tips should come in childproof packaging (which would raise
everyone's cost), most people probably agree that making Q-
Tips is not an evil act.
When the jury awarded young Gregory $20 million in punitive
damages, the judge did what was obvious from the beginning
and overturned the award. The claim ended sensibly, but is
this how justice should work? Sweating through trial and
verdict to get to obvious justice, while the judge is sitting
there the whole time, doesn't exactly instill confidence in
the system.
Do judges enjoy watching the Q-Tip companies, or a Little
League coach, or a doctor squirm at the end of a
multimillion-dollar hook?
[[Page S9064]]
Lying dormant along the side of society is another
important legal principle: that a person injured should be
``made whole'' by damages. Traditionally, this meant out-of-
pocket losses, like lost wages or medical bills. In an
unusual case, like a homemaker with no wages, claims were
permitted in categories not actually calculable, like ``pain
and suffering.'' In cases of genuine evil, punitive damages
were possible.
Today, the exceptions have engulfed the rule, with all
kinds of side effects. Juries are regularly asked ``to assume
the baffling task of trying to place a monetary value on pain
and suffering,'' Dean Bok observed, ``although the
predictable result [is] to encourage a rise in litigation and
the growth of the most unsavory and deceptive practices.''
Judges might concede the principle but can't imagine how to
apply it. They need some objective legal post to hang on to.
If $1.35 billion is too much, what is the right amount? The
``exercise of judicial power is not legitimate,'' as one
scholar put it, ``if it is based on a judge's personal
preference rather than law.'' So what do the judges do? They
abdicate. Judges look up at the allegorical figure of Justice
and interpret her blindfold as impotence.
But Justice is also holding balanced scales. How does
Justice achieve balance but through the values and wisdom of
judges? Proportion is critical to justice. Equals should be
treated alike, Aristotle believed, and unequals
proportionally to their relative differences: ``the unjust is
what violates the proportion.'' These distinctions, Aristotle
observed, can only be made with human wisdom.
Dead people can be so smart. ``[T]o speak somewhat
paradoxically,'' Cardozo observed, there are times ``when
nothing less than a subjective measure will satisfy an
objective standard.'' Justice Potter Stewart had it right
after all. Judges have to know it when they see it. One
billion dollars for a wrongful dismissal case is absurd.
Everyone knows it. The case should be dismissed unless the
plaintiff comes back with some amount he can plausibly
justify.
I wonder if judges ever ask themselves why it is that
damage claims have escalated to a level where they are like a
parody of a dysfunctional system of justice. The answer
couldn't be more obvious. Judges sit on their hands and
tolerate claims that make lotteries seem like small change.
The reason people bring huge claims is not hard to divine:
It's a form of extortion. Why else sue for such ridiculous
amounts? Being sued for, say, $5 million for a regular
accident may not cause you to fold your hand, but the
possibility of ruin never strays far from your consciousness.
Most million-dollar claims end up settling for thousands or
less. But not all. All that it takes is for a jury to get
mad. . . .
The point I am making is that there is an imbalance. I think that
everybody recognizes there is an imbalance. We want to have a just
system. What we need to do is approve this cloture petition, end the
debate of whether to proceed to the debate, and bring in substitute
bills. And I have heard of some pretty good ones floating around. We
can debate the issue and come up with something that will make doctors
still accessible in States such as Nevada and Wyoming and the other
ones that we have had on the chart of states in crisis. There are only
about five that are not in crisis. Then there are varying degrees of
crisis among the rest of them.
The problem we are facing today is that multimillion-dollar awards
for pain and suffering are contributing to dramatic increases for
insurance premiums for doctors. When this forces doctors to leave their
practices, it hurts innocent patients who lose their access to medical
care. Do we not have an obligation to say enough is enough, and set
some limits on lawsuits?
As Mr. Howard points out in his book, if lawsuits are an exercise of
State power, perhaps the State should make conscious judgments of who
can sue for what.
When I spoke on this bill yesterday, I said the current medical
liability crisis and the shortcomings of our medical litigation system
make it clear it is time for a major change. I also said that
regardless of how we vote on this legislation, we ought to start
working toward replacing the current medical tort litigation scheme
with a more reliable and predictable and faster system of medical
justice.
I have heard Members on the other side of the aisle say they want to
work with Republicans to find a better way to solve this problem, to
find reasonable good-faith alternatives to this legislation. If we vote
not to proceed on this bill, I hope this process will begin sooner
rather than later. I hope we proceed so Members can bring their ideas
out and suggest amendments; then we can vote up or down. The people of
Wyoming and other States in crisis cannot afford to lose any more
doctors. We cannot afford to lose any more time.
If we do not proceed on this bill today, I pledge to continue working
to find solutions to this million-dollar liability crisis. I hope
Members on both sides of the aisle will also take this pledge to keep
working on this.
I yield the floor.
The PRESIDING OFFICER (Mr. Graham of South Carolina). The Senator
from the State of New York.
Nomination of Victor Wolski
Mr. SCHUMER. Mr. President, I will talk today about the nomination of
Victor Wolski to the Court of Federal Claims. This nomination
admittedly has not gotten much attention from our colleagues because
the Court of Federal Claims does not handle the breadth or the number
of cases that the courts of appeals do or even Federal district courts.
However, I remind my colleagues that in one area these courts are
extremely important--they are important in many areas, but in one area
where we have our usual ideological discussions and battles, the area
of the environment. The Court of Federal Claims is the place where
claims of takings reside. Takings have been the way many have opposed
the advances we have made in the environment. They make their arguments
this is a government taking from you your right to use your property as
you see fit.
When the Government says you cannot pollute the water on the land you
own or you cannot pollute the air on the land above which you own, some
have come up with the theory that the Government is taking something
from you. It is sort of denying the theory of compact that we all live
together and we all have to be responsible for our land and our water.
I argue that the vast majority of Americans do not agree with this
argument. However, there is a small group of people who tend to be
propertied, tend to be quite well off in society, who are very much for
this argument.
The nominee to the Court of Federal Claims, Victor Wolski, if we
nominate him, if we approve him, we are approving somebody who has led
the charge in this area--not somebody who sees some merit to the taking
argument and sees the other side but somebody who is a committed
ideologue, not somebody who would have the balance we need on the
courts.
If anyone does not believe me, I take Mr. Wolski's own words to the
National Journal:
Every single job that I have taken since college has been
ideologically oriented trying to further my principles.
He then goes on to describe his principles as ``a libertarian belief
in property rights and limited government.''
This man is a self-described ideologue. I thought we had been making
some progress in this body, that while some would propose more
conservative nominees and some would propose more liberal nominees,
that it was a bad idea to put ideologues on the bench, ideologues of
the left or the right.
Mr. Wolski is clearly an ideologue and does not belong on this
sensitive court. For that reason, he is opposed by 13 national
environmental groups. When he was counsel for the Pacific Legal
Foundation, Mr. Wolski consistently furthered his ideology through
sweeping arguments that would have dramatically undermined the Nation's
environmental laws.
My guess is he preferred an America of the 1890s or the 1930s where
our air was much dirtier, our water was much filthier. Whether you are
a Democrat or Republican, if you believe at all in preserving the
environment, it would seem to me it would make a good deal of sense not
to further this nomination. We can find people who might be more
consistent with the President's views, with many views on the other
side in terms of not extending environmental laws or making sure that
the excesses of environmental laws are limited. Mr. Wolski is just not
that. He is so committed to this ideological view that the Government
has virtually no right to tell you you cannot pollute the air or the
water, that if he had his way, we would turn the clock back
dramatically in the environmental area. As a result, as I mentioned, 13
national environmental groups oppose his nomination.
In addition, a broad coalition of groups, civil rights, women's
rights,
[[Page S9065]]
human rights organizations, including the Leadership Conference on
Civil Rights, the National Fair Housing Alliance, and the National
Women's Law Center have expressed serious concerns with Wolski's
``extreme views on governmental power and his troubling record in race
and sex discrimination cases.''
Admittedly, this court does not handle race and sex discrimination
cases, but it does handle the takings cases that relate to our
environment.
In addition, I argue to my colleagues, Mr. Wolski does not really
have the judicial temperament to be a Federal judge. He argued a case
where there were ponds that were providing habitat for migratory birds.
I know from my own experience that some would think every piece of
water, every pond and every lake is a wetlands and cannot be touched,
and sometimes the advocates, I would be the first to say, go overboard.
However, in this case, Mr. Wolski called ponds ``puddles,'' and he
belittled the possibility that there might be any interest in
protecting migratory birds. ``Jurisdiction over puddles was justified
by the Ninth Circuit on the basis that birds might frolic in these
puddles.''
He wrote:
Will one fewer puddle for the birds to bathe in have some
impact on the market for these birds?
In the argument he is making--I don't know, the facts of the case
might be right--the language does not show the temperament, a fair and
balanced temperament, that we seek in nominations to the bench, whether
they be Democrat or Republican.
In a letter to the San Francisco Chronicle, Wolski derided what he
called ``a rogue Congress'' and referred to the Members of Congress as
``bums.'' Again, many of our constituents have hard words about
Congress Members, but I don't think a lawyer, a trained advocate, ought
to be using that kind of language. Again, it shows the kind of
temperament Mr. Wolski has.
On the merits of his views, he is way over to the extreme. On his
judicial temperament he has used incendiary language that is
inappropriate for a lawyer or a judge. Mr. Wolski should not be put on
the bench.
I make one other argument in this regard. The Federal Court of Claims
has some vacancies. It has 16 slots. It now has 13 senior judges in
addition to the 11 regular judges. This court does not have much of a
caseload. The average number of cases the United States District Court
judge handles is 355 cases; the number of cases a current judge of the
Court of Federal Claims handles is 24. If we add the new nominees, each
will handle 19 cases.
Let's say you don't agree with Chuck Schumer on the environment.
Let's say you even agree with Victor Wolski, but you are a fiscal
conservative. Why are we adding more judges to a bench that does not
need any help?
The Washington Post editorial--and, as you know, the Washington Post
on the issue of judges has not agreed with many of us on this side--
called the CFC:
. . . a court of extravagance and an unnecessary waste of
judicial resources that should be abolished.
Each of these judges costs a million dollars. I would say to my
colleagues, those on the other side of the aisle did not allow nominees
to the Court of Federal Claims when President Clinton was in office
because, they said, the caseload was too low. Today the caseload is
even lower, and there is a rush to nominate. This should not be
dispositive.
If Wolski were a good man, if the caseload were growing, I would
support him no matter what was done between 1995 and 2000. But I have
to tell my colleagues on the other side, it is extremely galling to us
that the very arguments that have been used in the past now seem
irrelevant, now that there is a new President making different
appointments. If the Court of Federal Claims should not have had
appointees under the Clinton administration and the Republican-
controlled Senate did not allow any because the caseload was too low--
24--why are we now nominating 4 and bringing the caseload down to 19?
It is just not right. It is not fair. There ought to be some
consistency to the argument. There is not. There absolutely is not.
So for these grounds, I urge Mr. Wolski's defeat. No. 1, he is a good
man--he may be a good man, I don't know him personally, but when I said
``a good man'' before, I did not mean in terms of his views for this
court. He is an extremist. By his own words, he is an ideologue. He
does not believe in the progress we have made on the environment.
If the President wishes, as our great process unfolds, to nominate
somebody who would cut back a little bit on the environmental laws, or
not make decisions that move them forward, that is a fair and
legitimate argument. To nominate an ideologue--a self-admitted
ideologue who has made it his career to say that anytime the Clean
Water Act or Clean Air Act has effect, it often means it is a taking--
is really not what the American people want. My guess is maybe half of
the people on this side of the aisle, on the Republican side of the
aisle, do not agree with these views at all--in terms of their voting
record.
His temperament is poor. He uses inflammatory and derogatory
language. That makes sense, in a certain sense--that when you nominate
ideologues, they are not dispassionate. They are not going to interpret
the law, which is what the Founding Fathers wanted; they are going to
make law. I have rejected nominees from the left in my own judicial
panel because they are ideologues, too, and they want to make law. We
want judges to interpret the law. Those far right and those far left
tend to want to make law. On temperament and ideological grounds, he is
not the right man for the job.
One other argument to boot. Even if you think he is the right person
for the job--and I argue, I plead with you to think otherwise--this
court has no caseload. This court could handle many more cases without
an additional new judge. This is a total boondoggle. This is a waste of
the taxpayers' money. If it was right that this court did not have the
caseload under the Clinton administration so we would fill the
vacancies, with the caseload even lower today, why are we doing that?
I respectfully urge my colleagues to vote no on Victor Wolski.
Mr. President, how much time do I have remaining?
The PRESIDING OFFICER. The Senator has 12 minutes.
Mr. SCHUMER. I yield the remainder of my time to my colleague, the
Senator from Illinois.
The PRESIDING OFFICER. The Senator from Illinois.
Mr. DURBIN. Mr. President, how much time is remaining for each side
for debate before the vote?
The PRESIDING OFFICER. There remain 34 minutes on the Democratic
side; 19 minutes remain on the majority side. The order indicates the
Democratic leader will be recognized at 11:10.
Mr. SCHUMER. Mr. President, before my colleague speaks, I didn't
realize when I yielded all the time, there was at least one other of my
colleagues who wanted to speak on Mr. Wolski. Could we, if he should
come, just leave 5 minutes to continue the debate? I just reserve 5
minutes of the time to discuss the Wolski nomination, and I will yield
the remainder--whatever is left after reserving those 5 minutes--to my
colleague who I know wants to speak on both issues.
The PRESIDING OFFICER. The Senator from Illinois.
Mr. DURBIN. I hope I understand what just happened. I have 29 minutes
remaining? Is that mistaken? Five minutes will be given to some
Democrat to speak on the Wolski nomination, and then the remaining 13
minutes, is that correct, are on the Republican side, majority side?
The PRESIDING OFFICER. There are 19 minutes remaining on the
Republican side.
Mr. DURBIN. I think I have it, or at least close to it.
Thank you, Mr. President, for your cooperation and I thank my
colleague from New York for yielding this time.
In the last 2 days we have been engaged in a debate on the floor
which affects every American family and business, and the question is,
What are we going to do about the dramatic increase in the cost of
medical malpractice insurance that we see among some specialties in
some parts of the country? It doesn't affect every State. It doesn't
affect every doctor. But those doctors who are hardest hit, I believe--
and I think everyone here shares that belief--need relief. They need
some help.
What do we have offered to us today? S. 11. This is the bill brought
to us by
[[Page S9066]]
the Senator from Nevada, Mr. Ensign, and Senator McConnell and a number
of other Republican Senators. This suggests that the best way to limit
the medical malpractice premiums being charged to doctors is to limit
the amount of recovery that a person who has been a victim of medical
malpractice can receive. It is a decision which says we will no longer
trust a jury of 12 people from your community, your city, and your
State to decide what is fair compensation for your injury caused by
another person. That decision will be made by a jury of 100 Senators,
who will decide today, with S. 11, that regardless of what has happened
to you or your child, regardless of the severity of the injury,
regardless of how many years you are going to go through constant pain
or suffering, we will decide today, in the Senate, that if your State
has not come up with another number, the maximum amount you can receive
is $250,000 for pain and suffering.
Some may say that is a pretty substantial sum of money. I have heard
that said on the floor here. How can the critics of this bill be coming
to you and saying $250,000 is not that much money?
I concede, if you bought a lottery ticket today and were paid
$250,000 tomorrow, you would be a happy person. But if you had a
medical injury today which incapacitated you for the rest of your life,
which left you in a wheelchair, quadriplegic for the rest of your life,
which left you in a state dependent on others for the rest of your
life, which left you permanently scarred and disfigured for the rest of
your life, and you were told that your compensation was $250,000, I
think it would put it in a much different perspective.
I think that is what is missing in this debate. I cannot get over how
Senators come to this floor and dismiss all of these victims of medical
malpractice and say, basically: It is a shame, but they just don't get
it. We have a bigger problem here. We have a malpractice insurance
problem.
I have listened to the debate. I have listened to those who suggest
that this bill, S. 11, is the answer to the problem. I say it isn't.
The problem is national. The problem is serious. The problem will not
be answered by this legislation.
There is a belief that if you limit the amount that a victim can
recover malpractice insurance premiums will go down. Let me tell you
that facts don't bear that out.
Take a look at these States. Some of them have State laws that cap
liability. Others don't. Of the States without caps where a victim of
malpractice can receive whatever a jury thinks is fair in the period
1991-2002, four of those--Arizona, New York, Georgia, and Washington--
saw modest increases in malpractice insurance premiums. Here are four
States with caps on what a victim can receive. The malpractice
insurance premiums have shot up dramatically. There is no direct link
between limiting a victim's recovery and the malpractice insurance
premiums that are charged. Yesterday, Senator Ensign of Nevada, I think
in a very candid moment, conceded that fact. He brought out a chart. He
said you can't compare States with caps that have only been in place
for a short time. In the words of Senator Ensign, as the Congressional
Record reflects, it will take 8, 10, 12, or maybe 15 years before these
caps on victims in terms of what they can recover for their serious
injuries really do have a measurable impact on malpractice insurance
premiums.
I would say to the doctors in Illinois and in Nevada and in any State
in the Union, is this a reasonable answer to today's malpractice
insurance crisis to suggest that limiting a victim's recovery will
ultimately reduce malpractice insurance premiums 8, 10, 12, or 15 years
from now? Trust me. In some of these specialties, OB/GYN and
neurosurgery, these doctors can't wait for that period of time. Sadly,
even if you bought the premise of this bill that limiting a victim's
recovery will help a doctor's malpractice premiums, the sponsor of the
bill came to the floor yesterday and conceded that it won't happen for
8 to 15 years.
Where does that leave us? It leaves us in a situation where we have a
bill that is fundamentally unfair to the victims of medical malpractice
premiums.
I listened to the rhetoric on the other side. I have been a
practicing attorney, a trial lawyer, both a defense attorney and a
plaintiff's attorney. I guess I understand that my profession has been
the butt of a lot of jokes and a lot of derision. I have heard Members
come to the floor and talk about those greedy lawyers. I will have to
tell you that there are an awful lot of men and women practicing law
across the United States who I think are doing a service to their
clients and to America. They have people come into their law offices
who are seriously hurt or who have lost a loved one and who have no
money to their name and are looking for justice. They want an
opportunity to go to court. They can't pay for it. They can't pay for
an attorney on an hourly basis and be charged $10,000, $20,000,
$30,000, or $40,000 for their day in court. Some of them can't even pay
the court costs or the filing fees or the necessary expenses for a
deposition asking questions preparing for a lawsuit.
Lawyers who represent these people say: I will take it on a
contingent basis. If you succeed, if you win, I will be paid. If you do
not succeed, if you lose, I will lose with you. That will be the gamble
we will take together. We believe we have a good lawsuit. Let us go
forward. Some of these lawyers say on a personal basis this is what my
recovery will be.
I don't think there is anything unfair or insidious about this any
more than it is unfair or insidious that those who are defending the
person accused of wrongdoing are generally represented by insurance
company lawyers who pay unlimited amounts of money for the defense of a
lawsuit. That is just the nature of our judicial system.
On this floor the people who take contingency fee cases are referred
to as greedy and selfish, exploiting the plaintiff, exploiting the
claimant, and exploiting the victims. I am sure it has happened. I am
sure it will continue to happen--I hope in as few cases as possible.
There is nothing unfair or unjust about a contingency fee system. In
fact, it gives people an opening in the court they would never be able
to afford. I have seen it. I represented people under those
circumstances. I have run that risk. Sometimes I didn't succeed for the
client or myself. Sometimes I did. That is the nature of the system.
Then a Senator came to the floor yesterday. He is a friend of mine. I
respect him. But he used a term which troubles me greatly. He said he
wants to end this ``jackpot justice.'' That was his phrase--``jackpot
justice.'' I guess the idea is that if someone goes into a courtroom
with a flimsy case and ends up with millions of dollars, hit the
jackpot. I guess that can happen, too. Maybe it has.
But I want to talk to you a little bit about ``jackpot justice'' in
the world of medical malpractice. I would like to point, as exhibit No.
1, to Alan Cronin, a 42-year-old man from the State of California. Alan
Cronin is a man who has three children. He went in for a simple surgery
of a hernia repair. After the surgery, two doctors failed to diagnose
an acute infection. They treated him as if he had the flu. But he had a
very serious infection instead. He became septic and suffered toxic
shock. Once the doctors realized that, and they had to reopen the
surgery site where they repaired the hernia. They found a horrendous
infection underway. They told his family that he had a 98-percent
chance of dying as a result of this infection. Gangrene had set in. As
a consequence of a simple hernia operation and the malpractice that
occurred afterwards, this gangrene claimed all four of Alan Cronin's
limbs--both of his legs, both of his arms.
He used to be a customer service representative for a medical
equipment manufacturer and workers compensation paid for all of his
medical expenses, including some of his future expenses. He also had a
private disability policy that he used to help keep his family
together, offsetting future damages.
The reason this case is important is I guess there are some in the
Chamber who would say if Alan Cronin goes to a courtroom and asks the
jury for a verdict against the doctor who made the mistake which led to
his infection, which led to gangrene and which led to this man losing
both arms and both legs and asks for a verdict against that
[[Page S9067]]
negligent doctor and he is given several million dollars to try to keep
his family and life together for the rest of his natural life, in the
words of some of my colleagues, Alan Cronin would ``hit the jackpot.''
What a jackpot--several million dollars for both arms and both legs?
How many volunteers would sign up for that jackpot? How many people
want to buy a ticket on that jackpot lottery? None of us would. None of
us would ever trade places with what this man has gone through and will
go through every minute of every hour of every day of every week of
every month and every year for the rest of his life. This is a jackpot?
You should have been in the room yesterday when Senator Graham and I
met four victims of medical malpractice who came in to see us.
Colin Gouley, a young man from Nebraska, came to us. As a result of
medical malpractice, when he was born he had serious problems and
disabilities and is going to be confined to a wheelchair. He must sleep
at night with a cast. He has a limited ability to respond and learn and
speak. He won't go through the ordinary human events of experiences
that we take for granted.
He has a twin brother. This is a picture of Colin and his twin
brother Conner. You can see Colin on the left and his twin brother, who
is healthy, happy, and an active young man. That will be the fate and
future for Colin.
They took the case to a jury in Nebraska and said for the rest of his
life and with all of the pain and suffering that he will endure, what
is it worth? That jury said: We calculate it to be about $5.6 million.
But because of Nebraska's State law that limits the amount that can be
awarded in cases of medical malpractice, the family will receive a
fraction of that amount. It will mean that his mother and father and
his two sisters and brother will be tending to his care for the rest of
his life, as they would naturally, but they will have to do it much
more because of his situation. It also means that ultimately the
doctors and hospital that may have been responsible for this wrongdoing
will not be held accountable but it will be the responsibility of the
government to pay more and more of his medical expenses. That is not
what the family wants, but look at the situation they face.
Do you believe the Gouley family hit the jackpot? This is jackpot
justice? I can tell you what this bill would say. If your State does
not have a limitation on recovery, this bill would say to Colin Gouley
and his family: We are sorry this happened to you, we are sorry you
were a victim of malpractice, but the pain and suffering you will
endure for the rest of your natural life is worth $250,000. The verdict
rendered by the jury of the Senate is $250,000 and not one penny more.
That isn't fair to the Gouley family, but, frankly, that is our idea
of how to deal with the medical malpractice insurance crisis. At least
that is what has been proposed.
We have to put a human face on this issue. We have to make sure
people understand it isn't just doctors who face malpractice premiums,
it isn't just people who are looking for care but cannot find it
because doctors cannot practice in some areas because it is more
expensive. The solution being offered by the Senator from Nevada and
others is to limit the recovery of medical malpractice victims and
their families, to limit the amount of money that would be paid to
children who are the victims of medical malpractice.
There is no argument here about who is at fault. The fault was
established by the jury. But this bill would say: The Federal
Government will decide how much the Gouley family can receive. The
Federal Government will decide how much Alan Cronin will receive for
pain and suffering in those States that do not have a different
limitation.
I guess what troubles me, too, is this bill does not go to the root
issue that is before us. We were told by this administration, the Bush
administration, through Dr. Clancy of the Department of Health and
Human Services, that medical errors and medical malpractice have
reached epidemic proportions in this country. Instead of dealing with
medical malpractice at an epidemic proportion, what we are saying is
the real way to control this problem is to make sure Colin Gouley and
his family are not adequately compensated for the injuries and damages
they have suffered.
That is so shortsighted and it is so fundamentally unfair.
If these malpractice premiums are unfair to doctors, I can tell you
S. 11 is fundamentally unfair to Colin Gouley and his family and people
like them across America.
Mr. President, 100,000 Americans will lose their lives this year
because of medical malpractice, not because of their disease or illness
but because of mistakes that are made--100,000 people. And that figure
comes from the Bush administration Department of Health and Human
Services.
Of those who could file a malpractice claim in any given year, 1 out
of 50 actually do go to a lawyer and seek compensation; 2 percent, 1
out of 50. If we do not go to the root cause of this problem, this bow
wave of malpractice that is about to swamp us in this country, then,
frankly, we are not addressing the root problem. Instead, what we are
doing is penalizing the Gouley family and others like them and
rewarding insurance companies.
Do not be surprised by that. We do that on a weekly basis in the
Senate. We find ways to take a special interest group, such as
insurance companies, and give them more profitability, less
accountability, whether it is HMOs, which, incidentally, are protected
and rewarded by this same bill, or other insurance companies. That is
the nature of the philosophy that drives the majority opinion in the
Senate.
But families across America see it differently, and they should. This
law we are considering, S. 11, unfairly is going to insulate from
liability HMO insurance companies, managed care insurance companies, as
well as drug companies and medical device manufacturers.
One last point I would like to make at this moment is they have a
provision in this bill which says if your drug, for example, or medical
device has been approved by the Food and Drug Administration, it
virtually insulates you from liability for punitive damages. I asked my
staff to prepare a list of the various drugs that have been marketed
which have been found to be dangerous and deadly to people across
America. Frankly, there are too many for me to list in the record at
this point. I will submit them at a later time.
Why in the world would we want to put in this bill an insulation for
those who make medical devices which end up killing people? Why in the
world, in a bill that is supposed to be helping struggling doctors, are
we talking about insulating from liability pharmaceutical companies
that sell dangerous drugs?
Oh, the argument is, if it is approved by the FDA, that should be
enough. We know better. Those of us who have been involved on Capitol
Hill know we do not fund the Food and Drug Administration adequately.
There are not enough people there doing the important work that should
be done. We know they do their best, and we know that 9 times out of
10, maybe 99 times out of 100, they are going to make certain drugs are
safe and efficacious, but we also know quite well that there are not
enough people there doing the job that needs to be done.
Much like the tobacco companies hid behind the warning label on their
packages when they were sued for cancer and heart disease, these drug
companies, under S. 11, want to hide behind an FDA approval and say: We
can't be held accountable for what we might have known or what we might
have done if, in fact, somewhere along the way the FDA gave us a stamp
of approval. That should insulate us from liability.
Think about what we are doing here, and think, for a moment, about
the victims. If you love the companies, if you love the insurance
companies, couldn't you have some love in your heart for these victims,
some compassion for what they are going to go through? I think that
should be an important part of the debate.
I reserve the remainder of my time, Mr. President.
The PRESIDING OFFICER. Who yields time?
Mr. ENSIGN. Mr. President, how much time is on each side?
The PRESIDING OFFICER. Nineteen minutes on the majority side, 13
minutes on the minority side.
Mr. ENSIGN. Mr. President, I yield myself 5 minutes.
[[Page S9068]]
The PRESIDING OFFICER. The Senator from Nevada.
Mr. ENSIGN. Mr. President, first of all, let's make sure one thing is
clear. What we are debating today is whether to proceed to the bill. We
are trying to get on the bill. If people have certain problems with the
bill, they can offer amendments, but only if they allow us to proceed
to the bill. That is what the vote is on today, whether or not we are
going even consider that we might address a crisis that is happening in
the United States.
There have been a few things that have been talked about from the
other side of the aisle today that I would like to address. I want to
read from a report because they have been quoting this study. The Weiss
study, which has been referenced repeatedly by the other side of the
aisle, supposedly took numbers from this publication called the Medical
Liability Monitor.
Mr. President, I ask unanimous consent that a portion of this report
be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From the Medical Liability Monitor, Oct. 2002]
2002 Rate Survey Finds Malpractice Premiums Are Soaring
hard market wallops physicians; average rate increases more than double
those in 2001
A nationwide survey of rates for physicians' medical
professional liability insurance confirms that not only has a
hard market for this necessary coverage arrived, but from all
indications, it is settling in to stay for awhile.
For the past 12 years Medical Liability Monitor has
conducted an annual study of malpractice insurance rates.
Reports come in from carriers in all 50 states who represent
approximately 65% to 70% of the entire market. This year,
that percentage may be even larger, now that former insureds
of St. Paul and other companies who have quit the business
must obtain replacement coverage and are moving to carriers
remaining in the traditional market when possible.
For many physicians, whose incomes are held down by rigid
government and health plan reimbursement schedules, coming up
with funds to pay fast-rising insurance costs poses real
problems. Here is a closer look at how malpractice insurance
rates have risen in many places in the past year.
The chart below shows that the average cost of malpractice
insurance for internists rose by 24.7% from July 1, 2001 to
July 1, 2002. In 2001 the percent of increase was 10.1%.
General surgeons' rates went up similarly, increasing by an
average 25% in 2002 from 10.3% in 2001. The average increase
in rates for obstetricians/gynecologists climbed from 9.2%
last year to 19.6% this year.
For internists and general surgeons the average percent of
increase in the 12-month 2001-2002 period was a staggering
145% and 143%. Increases for OB/Gyns, whose rates typically
are much higher than those of their internal medicine and
surgical colleagues, went up on average by 113%.
The effects of the rate increases were uneven, falling most
heavily in certain states and metropolitan areas, like New
York, Chicago, Detroit, Cleveland and Miami. Unlikely spots
for exploding premiums were Las Vegas, West Virginia, and the
Rio Grande Valley in Texas. Even though there were rate hikes
in most states, they sometimes were more modest. Two states,
Alabama and Alaska, had no increases at all. Insurers in
several states raised rates only modestly. There were even a
few, but very few, downward adjustments in rates for certain
specialists in specific territories in a handful of states.
One company in Alabama cut rates for general surgeons by 6%.
A company in California pared rates for internists in certain
areas by 4% and 7% and for obstetricians in other areas by 1%
and 3%. An Illinois company lowered rates for general
surgeons, except in Cook and two other counties by 4% to
8.6%. There were some modest reductions for certain type of
physicians in two or three other states, but these were by
far the exceptions, not the rule.
The size of increases in some areas in which malpractice
problems with claims and claims severity have exploded was
mind-boggling. Increases of 40%, 50%, 60%, 80% were not
uncommon. In Arkansas one carrier boosted rates by 90.1% to
112.7%.
basement to through-the-roof variations
The differences in premiums for specialists in various
states and areas are widespread. Base rates for internists in
South Dakota provided by one insurer, were $2,906, while the
highest rate reported for these physicians was $56,154 in
Dade County, Miami.
The extremes in base rates for general surgeons are even
greater. In Minnesota one company's manual rate was $8,717,
but in Miami the highest number quoted by a carrier for this
specialty was $174,268. The wide swings were also typical for
OB/Gyns. One company's rate for these physicians was $13,317
in South Dakota, but once again, the highest rate was
$210,576 in Miami.
Mr. ENSIGN. Mr. President, the editor of this report has basically
said the Weiss study they quote is completely misusing their numbers. I
refer you to a portion of the report entitled ``Survey Finds Wide
Swings in Premiums'' because my colleagues on the other side of the
aisle state that there have not been these wide swings in premiums. The
report says:
The size of increases in some areas in which malpractice
problems with claims and claims severity have exploded was
mind-boggling. Increases of 40 percent, 50 percent, 60
percent, 80 percent were not uncommon. In Arkansas one
carrier boosted rates by 90.1 percent to 112.7 percent.
Notice what it said here. It said, ``malpractice problems with claims
and claims severity have exploded.'' The premium increases have been
``mind-boggling.''
The Senator from Illinois has put up pictures of victims of
malpractice. I want to show a picture of one of the victims, because
there are victims on both sides of this issue.
Picture this gentleman shown here.
This was a gentleman, Mr. Lawson, who was visiting the city in which
I live, Las Vegas, Nevada with his family. Unfortunately, the time they
visited was the week the trauma center closed because of the crisis we
have in the State of Nevada. The trauma center closed, and this
gentleman, unfortunately, could not get care. In this picture he looks
healthy. Unfortunately, he is no longer with us.
There are a lot of people the other side have shown as victims. Those
people, if we do not do something, will not even have doctors to go to
because doctors are leaving the profession, and new doctors are not
coming in to replace them.
We have a crisis in this country in 19 States. All but six States are
showing serious problems. The Senator from Illinois quoted my words
yesterday, that it takes years to find out whether legislation in the
States that have enacted reform will be effective. The reason for that
isn't that they aren't necessarily good pieces of legislation, it is
that they are being challenged in court and then appealed and appealed
and appealed. A lot of the State courts are striking down these laws,
because of some technicality in their constitution or a particular
problem in their piece of legislation. Because of that, there is
uncertainty even when States pass legislation if this crisis will
remain out of control. The insurance companies don't know whether the
laws are going to be upheld, so they can't lower rates because they may
end up with a huge liability down the road if the law is struck down.
That is the problem.
We must act now while we still have some time. How bad does the
situation have to get in the future? I would love to add into this
bill, as we did with campaign finance reform legislation in the year
2001, an expeditious judiciary review of the law so that we can find
out whether it is going to be held constitutional or not. But we can't
do any of that because the other side of the aisle will not even allow
us to proceed to the bill. We can't debate the legislation and we can't
offer any amendments unless we can at least agree to proceed to the
bill.
If the opponents don't like the legislation, if they think there are
ways to fix it, they should allow us to at least proceed to the bill so
that we can have amendments offered, have a full debate, bring out all
the pictures of the victims you want to bring out, amend the bill, and
come up with legislation that is going to actually fix the problem in
the United States. It really is a crisis and you can be sure that
debating on the motion to proceed, and not agreeing to take up the bill
will not fix the problem.
I wish to again illustrate the differences in the premiums across the
country by the use of this chart. In white are the two States with
cities represented that have had medical liability reforms in place for
some time.
I yield myself an additional minute.
The ones in gray have not.
Let's go to obstetrics and gynecology. Los Angeles, CA, the bill
before us today mirrors the law they have there. There is a $54,000
medical liability premium in Los Angeles. In Denver, where they have
had it since 1988, it is $30,000. New York, Las Vegas, Chicago, Miami
are much higher: $89,000, $108,000, $102,000, over $200,000 in Miami.
That illustrates the difference in the premiums in States that don't
have the reform. These numbers are continuing
[[Page S9069]]
to go up at a rapid rate. The numbers reflected here are actually a
couple years old, and they are continuing to skyrocket in States
without reform. That is why we need to act. It is a national priority,
and we must act now.
I reserve the remainder of our time.
The PRESIDING OFFICER. The Senator from Illinois.
Mr. DURBIN. I yield myself 5 minutes.
My question is, Why do we need to consider a bill of this magnitude
without taking it through the ordinary committee process? The Senator
from Nevada said yesterday, we just know we would never get it out of
committee. I am a little bit surprised at that because, if I am not
mistaken, it is the party of the Senator from Nevada that is the
majority in every committee that would consider this bill. If they are
truly looking for a bill that is fair and one that compromises where
necessary and negotiates a good-faith outcome, then it would come out
of committee. And certainly with the direction of the majority leader,
Senator Frist, who has spoken in favor of it, there would be an urgency
to it.
That is not the way this bill is being considered. This bill is
coming to the floor without committee hearing. They haven't had a
chance to hear the witnesses, not the four malpractice victims and
their families we met yesterday, not the doctors on both sides of the
issue, not the practicing attorneys, not representatives of the
insurance companies, none of them, no hearings from them, no statements
from them, no suggestions from them. I don't know where this bill came
from.
I can tell you the people who want it: Not only the American Medical
Association but clearly those who represent HMOs and managed care
companies that are insulated from liability under this bill, those who
represent prescription drug companies that are insulated from liability
under the bill, as well as medical device manufacturers. They put this
bill together.
Mr. ENSIGN. Will the Senator yield for a question?
Mr. DURBIN. On the Senator's time I am happy to yield.
Mr. ENSIGN. Is the Senator aware, last year, when his party was in
control, 115 bills bypassed the committee process, including the
economic growth package, No Child Left Behind, the Patients' Bill of
Rights, a Medicare prescription drug bill, the energy bill, and the
Trade Promotion Act? All were brought directly to the floor and
bypassed the committee process. Is the Senator aware his party did
that?
Mr. DURBIN. I am aware of that. I also have quotes from Republican
Senators who screamed in outrage every time that happened.
S. 11 is too important for us to consider without deliberation. It is
too important for us to ignore that this bill is an historic precedent.
It will take away from States across America the power they have had
from the beginning of this Republic to establish standards for
procedure and recovery in civil lawsuits.
That is something that, honestly, we do very rarely around here. If
we do it, if we consider it, as we are right now, for example, on the
asbestos issue, it is with a long and deliberative process. Not so when
it comes to medical malpractice. This is being brought to the floor on
a take-it-or-leave-it basis. When you say take it or leave it, I hope
my colleagues will leave it because the thought that we would limit
recovery to $250,000 for pain and suffering for every case defies
logic, common sense, and compassion. If you are looking for
compassionate conservatives, you won't find them in those supporting
this bill.
Let me give one illustration. This poor lady is from the city of
Chicago. She had two moles on the side of her face. She went to an
outstanding hospital to have the moles removed. She is about 50 years
of age. During the course of the simple surgery, she was receiving
oxygen. They were using a cauterizing gun, which you are not supposed
to do. As a consequence, there was an explosion with the oxygen. Her
face was literally burned off because of the fire which happened.
Her nose was so burned and scarred, she went through several
successive surgeries and, even after those surgeries, has to rely on
oxygen tubes to breathe 23 hours a day. It is anticipated she will go
through more surgeries to deal with the scarring and disfigurement and
problems she has had. She is in her fifties. She went in for simple
surgery. She came out disfigured for life.
According to this bill, the hospital and doctor responsible for it
should both come together and pay her medical bills. I certainly hope
so. If she bought health insurance to cover her own medical bills, that
would be brought up in the courtroom, so that the jury might not
believe she receives quite as much money because her payment of health
insurance, frankly, would be used against her. She would receive lost
wages for time off the job. That is reasonable. But when it comes to
the pain and suffering she will endure and has endured from the moment
this occurred until the day she dies, the jury of the Senate has
reached a verdict through this bill: She is entitled to recover not one
penny more than $250,000 for a lifetime of disfigurement.
She wrote an article in the Chicago Sun-Times and said: How many of
you would trade what I went through for $250,000? The answer,
obviously, is no one. No one would.
For those who come before us today and say this is the only way we
can deal with the medical malpractice insurance crisis is to ignore
what happened to this woman who went in for routine surgery and saw her
life tragically changed. That is what is wrong with the bill.
What we need to do is to be honest about addressing malpractice. I
have not heard one word from the other side of the aisle on how we can
reduce medical errors. What can we do about HMO insurance companies
making medical decisions when in fact doctors know better? It is
happening. This bill does nothing about that.
What can we do about the nursing shortage which accounts for 20
percent of the deaths in hospitals each year for malpractice? Nurses
overworked. They can't keep up with the caseload, the patients coming.
This bill does nothing about that.
The PRESIDING OFFICER. The Senator has consumed 5 minutes.
Mr. DURBIN. I yield myself an additional 1 minute.
This legislation addresses the issue from one perspective only. To
deny to this person and other victims an opportunity for their day in
court, to say we don't trust a jury in America, in any State in the
Union, to make a decision on the death penalty in a criminal case, or
we cannot trust a jury in Chicago to make a decision on what she is
entitled to receive because of the injuries she endured in that one
tragic moment in the hospital, that just defies logic.
It says to me that this bill is being brought to us by insurance
companies, by drug companies, by HMOs, by medical device manufacturers,
and it is not being brought to us with an eye toward solving a serious
national problem of bringing down malpractice insurance rates.
I am going to reserve the remainder of my time. When I return, I will
talk about an alternative bill that Senator Graham of South Carolina
and I are offering, which addresses this in a more responsible and
timely fashion. I reserve the remainder of my time.
Mr. ENSIGN. Mr. President, I think we have 12 minutes 20 seconds on
our time. How much time is on theirs?
The PRESIDING OFFICER. Six and a half.
Mr. ENSIGN. Two Senators have just come into the Chamber. As soon as
they are ready, I would like to yield them 10 minutes and reserve 2
minutes on our side and we can close up. At 11:10, the Democratic
leader will be recognized. So I will yield 10 minutes to the Senator
from Missouri, Mr. Bond.
The PRESIDING OFFICER. The Senator from Missouri is recognized.
Mr. BOND. Mr. President, I rise to speak about the Patients First Act
of 2003. Going to the doctor for a checkup is hard enough these days.
You have to juggle your family and work schedules. A few of us get all
the checkups and screenings we need, but making matters a lot worse is
the fact that more and more doctors are closing their practices or
limiting the services they offer. They are doing so because they cannot
afford the increasing costs of their medical malpractice insurance,
which they are required to carry.
[[Page S9070]]
According to the American Medical Association, 19 States are in a
full-blown medical liability crisis, including, regrettably, my home
State of Missouri.
In Missouri, physicians' average premium increases for 2002 were 61.2
percent. This was on top of increases in 2001 of 22.4 percent. As a
result, over 31 percent--almost one-third--of all physicians surveyed
by the Missouri State Medical Association said they are considering
leaving their practices altogether. Let me repeat that. Almost one in
three physicians in Missouri are considering leaving their practices
altogether because they simply can no longer afford to practice because
of exorbitant medical malpractice insurance rates.
In some cases, medical liability insurance rates are tripling in
Missouri, forcing older doctors into retirement and younger physicians
into other fields.
What is the cause of that? The cause, quite frankly, is the
unrestrained plaintiffs' legal actions asserting all kinds of
noneconomic and economic damages, which are paid, ultimately, by the
consumers who must compensate the doctors or lose their doctor services
because of the rates of malpractice insurance. Those judgments go
against doctors, and they have to be paid by insurance companies. But
the insurance companies raise their rates and drive good and bad
doctors out of practice.
According to the Missouri State Medical Association, 32 insurance
companies are licensed to write professional liability insurance for
Missouri physicians. Currently, only three of them are willing, or
able, to write new business. Three companies, which accounted for
almost one-third of Missouri's markets in 2001, have left the State of
Missouri altogether. The result: doctors who have practiced for years
in Missouri are closing their doors, moving their practices and
families across State lines, or limiting the care and services they
provide. It is happening in my State and it is happening across the
country.
But this is not just a problem for doctors. They are well educated,
and they can move elsewhere and resume their practice, as difficult and
unfair as that is. The real damage and pain is being felt by the
patients, or people who would be their patients if they had the choice.
Look at what is happening in Kansas City, MO, for example. Twelve
doctors at the Kansas City Women's Clinic, founded in 1953, used to
serve women in Missouri and Kansas. Because of rising medical liability
rates, the clinic could not find a single company that would offer them
a single medical malpractice insurance policy that they need to keep
their office open in Missouri. The result: On December 31, 2002, they
closed their doors to Missouri patients. They closed their doors.
There were over 6,600 visits a year in the Missouri office. Now women
in Kansas City, MO, tell me that when they are expecting a child, in
order to go in for a checkup, they have to go to Kansas--drive across
the State line to Kansas. They either travel to Kansas to see an
obstetrician/gynecologist or try to find a new doctor elsewhere in
Missouri.
In a recent letter, Dr. Anthon Heit, president of the Kansas City
Women's Clinic, said:
Our loyal patients from Kansas City, Missouri, and many
surrounding Missouri communities, lost large, well-respected
groups of OB/GYN physicians as a source of their maternity
care. This type of action is going to continue to occur in
the Kansas City area, and in many other specialties, if the
trend does not reverse.
Sadly, that is not an isolated case. Also in Kansas City, the Midwest
Women's Health Network suffered a 170 percent increase in the cost of
its medical malpractice insurance. It used to pay $200,000 a year for
liability coverage. Now it pays $543,000.
Two Kansas City inner-city OB/GYNs, who serve low-income, high-risk
patients, had to sell their practices to their hospital in order to
continue to see patients in Missouri. Excessive litigation has created
an environment that forced these two doctors--committed to serving some
of the most vulnerable in Kansas--out of business. They are no longer
in independent practice.
One OB/GYN practice in Missouri is taking out a $1.5 million loan to
pay its medical malpractice insurance for this year. That doesn't even
cover the cost of previous actions over which they might subsequently
be sued. Other doctors in Missouri are considering going without
insurance for those past actions, or the ``tail'' coverage, as it is
called, because they cannot afford the premiums.
In Missouri, this year alone, we have already lost 33 obstetricians
and it is only July. If this trend continues, potentially 3,564
pregnant women in Missouri will be forced to find new physicians
annually to provide their obstetric care--probably outside of the
State--thus, interrupting continuity of care and long-established
physician-patient relationships upon which so many women have come to
rely.
Patients cannot get the care they need. The communities are losing
their trusted doctors. We have a health care system that is in crisis
in Missouri.
Mr. President, I yield such time as he may require to my friend and
colleague from Kansas.
The PRESIDING OFFICER. The Senator from Kansas is recognized.
Mr. ROBERTS. Mr. President, may I inquire as to how much time remains
that was yielded by the Senator from Nevada to the Senator from
Missouri.
The PRESIDING OFFICER. Four minutes 45 seconds.
Mr. ROBERTS. I thank the Chair.
As his neighbor to the west, I share Senator Bond's concern for our
health care providers and patients. But it seems that we have a ``tale
of two cities'' between Kansas City, KS, and Kansas City, MO.
Just across the State line, we in Kansas have problems and
challenges. But we don't have the same severe problems Missouri doctors
and patients are facing. That is because, in the 1980s, Kansas enacted
sweeping medical liability reform legislation that does create a hard
cap of $250,000 on noneconomic damages.
By contrast, that same cap in Missouri is $557,000 and can go even
higher under certain circumstances. As the Senator from Missouri said,
you won't find it surprising that nonsurgical specialists in Missouri
are now seeing very dramatic liability premium increases that have
been, until now, limited to surgical specialties. One pulmonary
practice's quote for traditional insurance went from $35,000 to
$125,000 per year. Another pulmonary specialist quit practicing at
North Kansas City Hospital because he couldn't afford the premium on
his Missouri practice. Now, as the Senator knows, he practices in
Kansas.
Here is another example.
We have learned that both neurosurgeons in Independence are moving
out of Missouri this summer leaving eastern Jackson County with no
neurosurgeon. There is no trauma care basically between the Kansas
State line and Columbia, 2 hours to the east.
According to the Kansas Medical Society, the two largest companies in
Kansas that provide medical liability insurance, Kansas Medical Mutual
Insurance Company and Medical Protective, had increases that were not
nearly as excessive as the increases in Missouri. Kansas Medical
Mutual, the largest insurer in Kansas, took rate increases of 16.2
percent last year and 8.5 percent this year. Medical Protective took a
13-percent increase last year.
Premiums for the standard policy in Kansas that have been available
for the last 15 to 20 years were actually lower in 2002 than they were
in 1991.
As I have stated, premiums for the standard policy in Kansas are
actually lower than they were in 1991. I simply want to make the point
in the short time I have that we have a tale of two cities. We have a
Kansas law in which we have 15 percent more doctors in Kansas than in
the past. Their premiums are not excessive. People are leaving Kansas
City, MO, to practice in Kansas. It is a tale of two cities. That is
why I think we should support the bill that has been authored by the
Senator from Nevada, S. 11.
A study by Weiss Ratings on medical malpractice caps was mentioned
yesterday evening. The study found that States with caps experienced
higher premium increases than those States without. I cannot speak for
other States but I can speak for Kansas, and the reports conclusions
were untrue.
First, as I have stated, premiums for the standard policy in Kansas
are actually lower now than they were in 1991.
[[Page S9071]]
Secondly, the point needs to be made that all caps are not the same.
The Weiss report lists the 19 States with caps, but only 5 States,
including Kansas, have $250,000 caps on noneconomic damages. The rest
are significantly higher, thus reducing the cap's impact on payouts and
premiums.
There is no question that the cap on noneconomic damages has had an
impact on premiums. It has created an unparalleled period of premium
stability for Kansas physicians and hospitals. Yes, premiums are
increasing in Kansas but at a much lower rate that other States.
Case in point: a family physician who delivers babies paid $13,790 in
1991 . . . . in 2001, that same physician paid $12,575--an 8.8 percent
reduction. Similar reductions exist for virtually every specialty. In
the aggregate, physicians paid $75.3 million in premiums in 1991 and
$60 million in 2002.
Finally, I wish to point out that there are probably about 15 percent
more physicians practicing in Kansas today than there were 12 years
ago, and the total premium is still lower.
Senator Bond and I have shared with our colleagues what good medical
liability reform can do.
Our Kansas City doctors have provided an outstanding example of how
medical liability affects doctors and patients on different sides of
the State line.
I urge my colleagues in the Senate to take a closer look at the
differences between our two States and the positive impact medical
liability reforms have had in Kansas. I hope that the Senate will
support S. 11 so that States like Missouri which are struggling to
retain doctors and offer the best patient care are not left out in the
cold.
I yield back the remainder of my time.
The PRESIDING OFFICER. The Senator from Illinois.
Mr. DURBIN. Mr. President, how much time do I have remaining?
The PRESIDING OFFICER. Six and a half minutes.
Mr. DURBIN. I thank the Chair.
Mr. BOND. Mr. President, I wish to reclaim the remaining time. How
much time is remaining?
The PRESIDING OFFICER. The Senator will have 1 minute 30 seconds
left, but the Senator from Illinois has been recognized.
Mr. DURBIN. Mr. President, I yield to the Senator from Missouri.
Mr. BOND. Mr. President, I thank my colleague and fellow Cardinal
rooter from Illinois for allowing me to finish.
It is important, as I hope the Senator from Kansas and I have pointed
out, that we must do something on a national basis. Missouri patients
cannot continue to lose their trusted doctors to the State of Kansas.
We cannot see people driven out of the practice of medicine--well-
educated, good practitioners who cannot afford the premiums. Unless we
act today, retaining and recruiting doctors in Missouri will continue
to be a difficult task.
I urge my colleagues to consider the experience of patients in Kansas
City and across Missouri and support the essential medical liability
reforms in S. 11.
Mr. President, I ask unanimous consent that an editorial in today's
Wall Street Journal entitled ``Political Malpractice'' be printed in
the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From the Wall Street Journal]
Political Malpractice
Democrats are expected to muster the 41 votes needed to
kill medical liability reform in the Senate today, so why are
Republicans smiling? Perhaps because they know they're teeing
up what promises to be one of their better issues going into
2004.
Democrats have long made the Senate the graveyard of any
and all legal reform. The news is that they're having a
harder time getting away with it. The scandal of asbestos
litigation has forced them at least to bargain on that issue,
while momentum is also building to limit class-action suits.
It says something about Tom Daschle's devotion to the trial
bar that he's willing to ask his Members to walk the plank
even on medical liability, just as voters are discovering the
damage it is doing to health care across the country.
No fewer than 19 states are in ``malpractice'' crisis;
Doctors have protested or walked our from Nevada to New
Jersey, while pregnant women have had to cross state lines to
find an obstetrician. One New Jersey doctor has held seminars
to train toll-booth operators in emergency delivery, since
more live births are likely to occur in transit to a distant
hospital.
Before Texas passed a recent reform, 14 of 17 medical
insurers had left in the past two years. In Arkansas, doctors
who treat nursing-home patients face a 1,000% premium
increased on renewals. In West Virginia, trauma centers
closed and doctors went on strike before Democratic Governor
Bob Wise led a successful reform effort. Because they
contribute to the practice of ``defensive'' medicine--or
unnecessary procedures just to be sure--liability suits are
also a major cause of rising health-care costs.
All of this prompted the House to limit medical damages by
a vote of 299-196 in March. But Senate Democrats continue to
just say no. California's Dianne Feinstein dallied with
support for a while, before the lawyers and Mr. Daschle
yanked her back into line.
The irony is that the proposed Senate bill is modeled after
California's own successful 1975 reform that limited pain and
suffering damages to $250,000. Victims of genuine malpractice
still get compensated for economic harm, but they are no
longer able to win the lottery of a huge jury award. In the
past 25 years premiums across the U.S. have risen three times
more than in California.
Even if reform fails in Congress, the national battle has
helped to trigger a wave of change in the states. Ten states
have passed some liability reform in the past year, and
another 17 have debated it. Nearly all of these reforms
include some limit on non-economic damages, the kind that
drive insurance rates out of sight and are unconnected to
genuine harm.
Still more state reforms are on tap this year. Florida
Governor Jeb Bush is calling his legislature back for an
unprecedented second session starting today to address the
problem. Connecticut, where obstetricians will seen an 85%
increase in premiums for next year, may also have a special
summer session.
As federalists, we think this wave of state reform is
probably better than a single national law. Unlike class
actions, which damage commerce nationwide, medical liability
affects health care in individual states. If a state's
political-legal class is driving doctors away, then its
voters can throw the political bums out. That may be what
eventually happens in Missouri, for example, where Democratic
Governor Bob Holden is promising to veto reforms passed by
the GOP-run legislature. There's also a danger that a
national reform might override even better state laws, such
as California's.
The argument for national reform is that the crisis is too
acute to wait for 50-state trench warfare, especially against
a trial bar grown so rich on tobacco and asbestos shakedowns
that it can buy entire legislatures. Some states in crisis,
notably Pennsylvania, also have constitutional obstacles to
capping non-economic damages. And yet reform's recent success
shows that is can be done.
The vote in Congress will help this along by educating
Americans about the problem and who refuses to solve it.
Among Republicans, we'll be watching Pennsylvania's Arlen
Specter in particular. He's typically a pal of the trial
lawyers (his son is a medical liability lawyer), but he also
faces a primary challenge next year from a reform proponent,
Congressman Pat Toomey.
But the main result of today's vote will be to get the
Democrats on record for killing reform one more time. They
will then have handed President Bush and most Republicans an
issue that is both good policy and good politics for next
year. In a debate between lawyers and patients, we know where
the voters will come down.
Mr. BOND. The Wall Street Journal says:
As federalists, we think this wave of state reform is
probably better than a single national law. Unlike class
actions, which damage commerce nationwide, medical liability
affects health care in individual states.
It goes on:
The argument for national reform is that the crisis is too
acute to wait for a 50-State trench warfare, especially
against a trial bar grown so rich on tobacco and asbestos
shakedowns that it can buy entire legislatures.
I yield the remainder of my time. I thank the Chair.
The PRESIDING OFFICER. The Senator from Illinois.
Mr. DURBIN. Mr. President, let me say at the outset, we have talked a
lot about the Patients First Act that is before us, S. 11. As far as I
can tell, this is ``patients last.'' It says, regardless of the injury
you sustained because of medical errors, medical negligence, medical
malpractice, we are going to limit you to $250,000 that you can recover
for your pain and suffering no matter how many years you have to
endure.
This is a photograph of Sharon Keller whom I met yesterday, a proud
registered Republican, as she announced in our press conference. After
a hysterectomy, she went into the doctor's office for an exam.
Unfortunately, the surgeon, as she examined her, made a move and
removed a suture and bleeding started. When the bleeding became
excessive, the doctor left the room and left Sherry on the examining
table as she went out to find someone
[[Page S9072]]
who could respond to the need and, at the same time, went to see some
other patients while Sherry was bleeding on the examining table.
Unfortunately, after a period of time, she went into shock and fell
off the examining table, as she was left unattended in the examining
room. When she fell off the table, she hit the counter as she fell and
damaged her spinal cord, rendering her an incomplete quadriplegic.
In this state of bleeding and virtually paralyzed, she dragged
herself out into the hallway to beg for help. The doctor called an
ambulance to take her to the emergency room but said: Just transport
her; you do not need to treat her on the way. She waited several hours
at the emergency room before they eventually treated her. She will
never walk again. She is a housewife and mother who had no lost
wages because of this and, frankly, because of this bill, she would be
limited to recover $250,000.
Is that jackpot justice? Has Sherry Keller made out like a bandit--
$250,000--for what she is going to go through for the rest of her life?
Is she being treated first as a patient? She is being treated last, and
that is unfortunate and unfair.
There is a medical malpractice insurance problem in America. We
should address it in a responsible way and not at the expense of
victims such as Sherry Keller.
Senator Graham of South Carolina and I have introduced a bill as an
alternative to this which we believe is a constructive first step
toward dealing with this.
First, to increase patient safety efforts across the United States to
reduce malpractice.
Second, to provide an immediate tax credit for doctors and hospitals
for their malpractice premiums. Doctors and hospitals cannot afford to
wait 8 to 15 years, as the sponsor of this legislation says it will
take, before limiting the recovery of victims results in lowers
premiums.
Incidentally, there are people in the insurance industry who will not
even say it will result in any reduction in premiums over a period of
time.
We also repeal the antitrust exemption given to the insurance
industry, which is totally unfair, which will end collusion among those
companies in setting rates.
We reduce frivolous lawsuits in saying to attorneys, those few bad
actors: If you do it, we not only will fine you, but ultimately we will
prohibit you from filing this type of lawsuit.
We give grants to hard-hit areas described in Missouri, Kansas,
Illinois, and North Carolina, so they can deal with losing doctors and
hospitals. We say that punitive damages are going to be allowed in only
the most egregious cases, serious intentional situations. But if a
doctor has been involved in helping his or her community through
Medicare and Medicaid, they would be immune from punitive damages in
medical malpractice cases.
We do not provide this great protection for the drug companies and
the medical device manufacturers who decided to jump on this medical
malpractice bandwagon for the ride and limit their own liability.
We do not preempt State laws. Individual States can still make
decisions they made historically, and we do provide statute of
limitations be decided by each State.
This is going to result in lower premiums and better situations for
people across America. It is a better way to go. I, frankly, think we
have to look at the root causes of the malpractice insurance problem.
First is the incidence of malpractice of epidemic proportions,
according to the Bush administration. That is the root cause.
Secondly, the malpractice insurance companies, when they made
investments during the Clinton era, as the stock market was booming--
and we all remember that--they did quite well. When the bottom fell out
a couple years ago in the stock market, so did their investments.
What does an insurance company do when their investments start to
lose ground? They raise the premiums on the doctors. That is what is
going on here. We are being asked to penalize patients and victims of
medical malpractice because of the investment practices of insurance
companies. We are riding to the rescue of insurance companies at the
expense of children whose lives are forever damaged and changed because
of medical malpractice. We are putting limitations on recovery for
people who are innocent victims so we can help the bottom line and
profitability of insurance companies.
Time and again, this Senate races to protect special interest groups
and forgets the families, children, and elderly people across America
who are the victims of this wrongdoing. That is not fair to them. It
certainly is not fair to this country.
I end by saying to doctors and hospitals across this country, after
we defeat this bad bill, let us come together for a reasonable solution
to reduce medical malpractice, to bring in the insurance companies and
hold them accountable and say to the legal profession they must
guarantee to us as well that there will be responsible conduct on their
part.
I reserve the remainder of my time.
The PRESIDING OFFICER. The Senator's time has expired. All time has
expired.
Mr. ENSIGN. I have 2 minutes and 20 seconds remaining.
The PRESIDING OFFICER. There is no time remaining.
Mr. ENSIGN. I yielded to the Senator from Missouri and reserved 2
minutes and 20 seconds for myself.
The PRESIDING OFFICER. It is my understanding the Senator from
Missouri used that time.
Mr. DURBIN. If I might, I am happy to yield 2 minutes to the Senator
from Nevada. I ask unanimous consent that the Senator from Nevada have
2 minutes.
Mr. PRESIDING OFFICER. There is no time to be yielded.
Mr. SCHUMER. Mr. President, as I understand it, I have 10 minutes.
The PRESIDING OFFICER. Under the previous order, at 11:10, the
Democratic leader will be recognized for 10 minutes. At 11:20, the
majority leader will be recognized for 10 minutes.
Mr. SCHUMER. I designate myself as the Democrat to control those 10
minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. SCHUMER. I am happy to yield 2 of those 10 minutes to the Senator
from Nevada, and I will then take the next 8 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Nevada.
Mr. ENSIGN. Mr. President, I thank my colleague for the time.
I will make a couple of quick points. First, we have seen a lot of
pictures from the Senator from Illinois. He talked about the $250,000
cap on damages included in this bill. Let's get one thing straight. It
is a $250,000 cap on pain and suffering.
He put up a picture of a young child. I will read some of the totals.
California has comprehensive medical liability reform in place that
this bill I have presented today is modeled after. These are the
following awards, and these are almost all economic damages or medical
damages that were awarded to these infants: $43,500,000 in May 2002;
July 1999, $30,800,000; April 1999 in Orange County, almost $7 million;
January 1999 in Los Angeles County, almost $22 million; December 2002,
$84 million. So for pictures to be put up and to say, what is this
child going to get, this child can get a lot. Most of these awards are
in economic damages or in medical expenses. Those damages are not
capped in this bill.
The next picture we have to put up is a woman with her child. Because
there was no OB/GYN available, she had to deliver this child on the
side of a road by herself. Unfortunately, the patient did have
complications, and the mother had to provide CPR to the baby on the
side of the road in the middle of the Arizona desert. Thankfully, the
baby survived. But she could have had serious consequences, and then
they would not have been able to get compensation from anybody. And
this is because there was no care available at the community hospital
that she had to bypass because the doctors could no longer afford the
premiums because of the frivolous and outrageous lawsuits that are
destroying our court system.
I yield the floor.
Nomination of Victor J. Wolski
The PRESIDING OFFICER. The Senator from New York.
[[Page S9073]]
Mr. SCHUMER. Mr. President, I ask that I be given 4 minutes of the
remaining 8 and the Senator from Illinois be given 4.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. SCHUMER. Mr. President, I want to repeat the arguments against
Mr. Wolski. Something new has happened since I spoke an hour ago. The
AFL-CIO has come out against him, which is understandable, because of
his ideology.
Mr. Wolski should be defeated for two reasons. First, he is an
ideolog. This important court, when it comes to the environment, does
not deal with much else we would care about, other than just claims
issues, and we should not have somebody who is a self-described
ideolog. Let me repeat that Victor Wolski, in his own words, said every
single job he has taken since college has been ideologically oriented,
trying to further his principles, which he describes as a libertarian
belief in property rights and limited government.
I do not think the Founding Fathers intended judges to be ideologs.
That is why they have us advise and consent, so that if a President, as
this President does, sees judges through an ideological prism and does
not nominate moderates--I do not like judges far right or far left--
when he nominates them, we can be the check. We have used that power
judiciously. We have defeated or filibustered only two of the 134
nominees the President has made.
This man deserves to be defeated. He is an ideolog, way over. If my
colleagues believe we have made advances in clean water and clean air,
his theory is that any type of environmental law is a taking, which
denies the compact on which we all live: That if someone lives upstream
on a river from somebody else, they do not have the right to dirty that
river and foul the water of the person who lives downstream. If someone
lives 100 miles east and they own a factory where the winds blow in
that direction, they do not have a right to spew SO2 and NO2 in the air
and foul the lungs of people who live downwind.
Mr. Wolski does not believe in that. He says if someone has the money
and can build the plant, go build it. That is the core of his beliefs
in terms of takings. So he is an ideolog. He does not have the
temperament for the bench, as mentioned. He said that Members of
Congress were, and this is his word, bums. If he does not like us, he
has a right to denounce us, but that is not the kind of word of a
person we want to see as a judge.
Just as importantly, whatever one's views on Wolski, this is a
boondoggle, a waste of money. The average number of cases a court of
appeals judge handles is 355. The Court of Federal Claims handles 24.
If we add these judges, it will go down to 19--a million-dollar
boondoggle.
The Washington Post, in an editorial, called it the ``Court of
Extravagance.'' When President Clinton was President, Members of the
other side refused to fill these vacancies, stating there were too few
cases and too small a workload. Well, the workload is even smaller and
we are nominating four judges. We do not have money for all of what we
are talking about--prescription drugs health care, education--and we
are doing this. It is wrong. It is hypocritical of those who have said
in the past that this court should not be filled, because it has such a
low caseload, to fill it now.
I urge Mr. Wolski's nomination be defeated.
Mr. SANTORUM. Mr. President, I rise in support of proceeding to the
consideration of S. 11, the Patients First Act. The issue of medical
liability reform has been studied extensively, and clearly Federal
policymakers have an obligation to address the explosion in litigation
across the country and jackpot-sized awards that are having a severe
impact on doctors, hospitals and patients' access to care.
This is a national crisis that requires a Federal solution. The
crisis is not confined within State lines, as patients are losing
access to physicians within their State and are having to cross State
lines merely to get access to care. Similarly, physicians are being
forced to leave their practices due to high insurance rates, and
relocate to a State that has enacted some type of reasonable reform
that has remained on its books through judicial review.
In Pennsylvania and many other States, health care providers are
facing enormous increases in their medical liability insurance premiums
or are unable to obtain coverage at all due to a significant rise in
scarce resources being drained from our health care system because of
sporadic and sometimes frivolous health care litigation. As a result,
real patients are being denied access to care and losing their family
doctors because of exorbitant medical liability costs.
In some States including Pennsylvania, some ob-gyns have been forced
to stop delivering babies, trauma centers have closed, and physicians
are grappling with how they can continue to provide other high-risk
procedures. South Philadelphia now has no operating maternity wards. In
Fayette County, a practice of three obstetricians that delivers half of
the babies born in the area stopped delivering babies when faced with a
premium increase from $150,000 in 2002 to $400,000 in 2003. And
according to the Pennsylvania Medical Society, 72 percent of doctors in
our State have deferred the purchase of new equipment or the hiring of
new staff due to increased medical liability costs.
To be sure, Mr. President, the health care profession is not free of
error. And I fully support a person's right to seek just compensation
when they are harmed by negligent or improper medical care. And I also
fully support initiatives referenced over the past couple of days that
would help to root our and prevent medical errors. But escalating jury
awards and the high cost of defending against lawsuits--even frivolous
ones--are driving up liability premium increases, with devastating
results for patients.
According to Jury Verdict Research, the median jury award increased
43 percent in just one year, 1999-2000. More than half of all jury
awards today top $1 million, and the average jury award has increased
to $3.5 million. And the vast majority of medical liability claims do
not result in any payments to patients.
And so how does this impact patients? Quite simply, medical
professionals are fleeing from areas where medical liability premiums
are escalating at a rapid pace. We have heard of many horror stories
over the past couple of days and in Congressional testimony about
patient access to care being adversely affected. The Wilkes-Barre Times
Leader, on October 23, 2002, reported the experiences of one of my
constituents in Northeastern Pennsylvania who suffers from two
herniated disks, having to travel an entire day because high insurance
premiums have decreased the number of neurosurgeons.
The truth is--every American pays the price for this country's
liability crisis, and Congress and the President have a responsibility
to fix this very serious problem.
Pennsylvania's own Representative Jim Greenwood has been a strong
leader on this issue and has introduced the bipartisan HEALTH Act,
legislation which would put in place new Federal minimum standards for
liability reform, based on measures that have been proven to be
effective in States like California with its proven MICRA reforms, to
help prevent excessive awards that are driving up health care costs,
encouraging frivolous lawsuits, and promoting time-consuming legal
proceedings.
The Patients First Act we are seeking to consider here in the Senate
is largely based on the House-passed HEALTH Act, and includes many
commonsense provisions which can serve as a bipartisan model for
medical liability reform. It would establish a reasonable Federal fall-
back cap on non-economic and punitive damages, but would allow States
the flexibility to set levels higher and lower if they choose. It would
allow for unlimited economic damages, and would ensure fair allocation
of damages, in proportion to a party's degree of fault. It would also
ensure that more of the awards from meritorious cases are paid to the
patient instead of trial lawyers.
Far from limiting the opportunities of patients to seek redress in
the courts, S. 11 would ensure full and unlimited recovery of economic
damages, of medical expenses, of rehabilitation costs, childcare
expenses, all current and future wage earnings that are lost, including
employer-based benefits, and any other economic losses.
[[Page S9074]]
We have heard a lot from the other side of the aisle about how this
legislation would somehow limit patient access to the courts by forcing
a Federal mandate to limit non-economic damages to $250,000. This is
completely false, and the other side of the aisle knows it. S. 11 would
give States the flexibility to establish or maintain their own laws on
damage awards, whether higher or lower than those provided for in this
bill.
And the experience of California shows that injured patients have not
only maintained access to the courts, but in many cases have received
multi-million dollar awards in economic damages, including minors and
non-working spouses.
The opponents of moving to consideration of this bill have also tried
to move the spotlight away from the underlying issues of cost and
access and suggest that the answer lies in insurance reform. This is a
flawed argument that takes needed attention away from the real
problems.
Suggestions that liability rates are high because insurance companies
are trying to recover past losses are, quite simply, factually wrong.
As a matter of law, medical liability rates are determined by estimates
of future losses from claims. State regulators are already required by
law to reject liability insurance rates that are excessive. Changing
insurance laws will do nothing to change the underlying reason for
rising premiums--an increase in meritless litigation and skyrocketing
jury awards.
President Bush is committed to passing balanced bipartisan
legislation that will put reasonable limits on liability lawsuits while
allowing compensation for patients truly harmed by medical malpractice.
Such reforms can save the Federal government and our health care system
tens of billions of dollars in rooting out frivolous lawsuits and
reducing defensive medicine.
We can and should create a medical liability system that more
equitably and rapidly compensates patients who have received
substandard care, but which at the same time limits frivolous lawsuits
and increases access to health care by reducing the excessive costs of
the system.
Mr. President, we have an obligation to at least move to
consideration of this bill, to have the opportunity to offer
amendments, and to show the American public that Congress is capable of
working toward real solutions on this growing health care crisis.
Mrs. DOLE. Mr. President, today the Senate must make a decision that
will affect the entire state of our health care system. For years,
America has enjoyed world-class health care. We have led the way in
cures and treatments, we have developed the latest and the best
technologies, and we have ensured that our doctors are trained in
ground-breaking procedures. Indeed, our Nation has accomplished much in
the area of health care.
But today the future of our world-renowned health care system sits in
the balance as this Senate mulls two very important choices. Will we
succumb to some trial lawyers who have nearly crippled the system by
filing hundreds of frivolous lawsuits each year? Or will we do the
right thing and place limits on these lawsuits and the big-money fees
lawyers earn off of them, so that our doctors can have the peace of
mind they need to do the job they love? I challenge my colleagues to do
the latter.
America is in the midst of a crisis. Those who need health care, the
most vulnerable and sickest among us, are the real victims. We have all
heard their stories. Too many of our patients can't get doctors, can't
get specialists, can't get health care. In North Carolina, rural
residents have been among the hardest hit. Patients tell stories of
driving miles just to find a doctor to treat an illness. There have
been reports of women driving for miles and miles just to find someone
to deliver their baby. This is beyond unacceptable. No one in this
country should have to struggle like this for health care. The America
I know is better than that.
I have heard from doctors in my State. And this crisis is having a
detrimental effect on our medical providers. Too many of them can't
afford rising malpractice insurance rates. They have had to curb their
medical practices, stop taking some patients, move to another State and
perhaps the most painful, leave the profession altogether. Dr. Jack
Schmitt says his insurance premiums went from $18,000 to $45,000 a
year. He eventually decided to leave his practice and teach at the
University of Virginia Medical School.
Doctors who decide to remain are forced to practice defensive
medicine and order an excessive amount of tests and procedures to
protect themselves from lawsuits. Dr. Steve Turner of Garner estimates
that internists like him prescribe close to $5,000 a day in defensive
medical practices or $1.2 million a year per doctor. This cannot
continue.
North Carolina is included on a list of 18 States that the American
Medical Association says is suffering from a medical liability crisis.
According to the AMA, some North Carolina hospitals have seen their
liability insurance premiums rise three- and five-fold in the last few
years. Specialists--like our obstetricians, emergency doctors, and
anesthesiologists--are seeing even higher increases.
Consider this: Novant Health, the corporate parent of Presbyterian
Hospital in Charlotte, saw its malpractice insurance increase by 114
percent between the years 2000 and 2003. They are now paying $4.5
million in malpractice insurance.
In Catawba County, doctors participating under the Network of Primary
Care practices have been told that because of rising premiums, charity
care will no longer be purchased for them under their policy. This
means if doctors want to volunteer their medical services at a soup
kitchen, homeless shelter, or some other charity, they are going to
have to first buy separate, costly insurance coverage themselves.
Even our Level III trauma center in Cabarrus County is in danger of
closing after premiums increased 88 percent. The list, the stories, and
the pain are endless.
The legislation before us is a solution that we know works. It is
modeled after California's MICRA law which has been in place since 1975
and has kept insurance premiums down in that State. This legislation
does not cap damages. Victims who suffer from a doctor's malpractice
will be able to recover every penny of their actual economic damages.
It does limit noneconomic damages, like pain and suffering. Punitive
damages would be limited and so would attorneys' fees. But the
legislation allows patients to collect for medical bills, funeral
expenses and other costs. And States would still have the option of
setting higher or lower caps than what is in the bill.
This really is one of those issues where the Senate cannot sit idly
by. The House has passed a bill. It is time for the Senate to do the
same.
We have a choice. We can vote with some trial lawyers who file
endless lawsuits and watch our health care system spiral into decay, or
we can put an end to this debate and protect our health care system by
casting a vote for our patients and the medical professionals who so
tirelessly care for them. I urge my colleagues to vote in favor of
cloture. Let's pass the bill for our patients who need it most.
Mr. NELSON of Florida. Mr. President, while I recognize that medical
malpractice insurance premiums have increased at an alarming rate in
many States, I rise today in opposition of the Patients First Act of
2003, S. 11. This bill does not put patients first, and fails to
address major parts of the problem.
Any legislation aimed at reducing premiums for medical malpractice
insurance must include reforms to the industry, and should be done by
experts at the State level. Insurance regulation and tort law are
traditional State issues.
The Senate is moving forward on this bill even though it has not been
vetted through the appropriate committees. To date, there have been no
hearings in Judiciary or a markup of S. 11.
In addition to foregoing the appropriate legislative process, I am
also concerned that this proposal, as introduced, fails to do what it
promises to do--ensure patients' access to doctors and decrease
malpractice insurance rates for physicians.
As a former insurance commissioner, I learned first hand that
insurance is best regulated at the State level. That level or
regulatory oversight over the industry ensures that residents of a
particular State are all afforded the
[[Page S9075]]
same protections and guarantees. A one-size-fits-all approach like S.
11 is not the best policy.
In addition, one of the cornerstones of the McCarran-Ferguson Act in
1945 was that in exchange for exemption to Federal antitrust laws, the
regulation of the business of insurance would be carried out at the
State level.
In the late 1980s and early 1990s insurers flocked to the medical
malpractice insurance market because of increased cashflow and rising
interest rates. These insurers pursued as much business as they could
and as competition increased, prices dropped. This competition created
an environment of underpricing the actual risks of the insurance.
As the economy worsened and investment income dried up, insurance
companies increased premiums to recover investment as well as insurance
losses. The Senate should not ignore the business practices of the
insurance industry in the so-called ``medical malpractice crisis.''
In a recent report by the Institute of Medicine it was estimated that
98,000 people die each year due to preventable medical errors. That is
268 each day. Why then instead of solely focusing on the tort system
are we not also addressing this issue? After all these errors are the
reasons most people seek compensation.
The Senate's proposal fails to improve overall patient safety and the
reporting of medical errors. Patients should have access to this
information and be allowed to make informed decisions about their
physicians.
Proponents of this legislation argue that by limiting the risk of
insurance companies through caps on damages, that by protecting their
interests, we will then lower medical malpractice insurance premiums
and ensure access to health care providers. I do not believe this is
accurate.
In the State of California, which already limits non-economic damages
to $250,000, the average actual premium is $27,570, 8 percent higher
than the average of all States that have no caps on non-economic
damages. Clearly a cap did not keep these premiums from rising.
In Florida, as in the Nation, we have had some sad malpractice cases.
If patients had access to information about their doctors then perhaps
Willie King may not have had the wrong foot amputated in 1995.
Mr. King was admitted to University Community Hospital in Tampa,
Florida, for the removal of his right foot. Imagine his surprise when
he woke up to find that Dr. Rolando Sanchez had removed the left one
instead. As it turns out 2 years earlier, Dr. Sanchez had settled a
claim from a man who agreed to one type of hernia operation but instead
had another, State records show.
Still, Mr. King--who was already collecting disability--still had to
have his other foot removed and was unable to remain independent as he
had been prior to the operation.
To cap damages, without regard to the extent of an injury is
shortsighted and unfair. Caps just do not fix the problem. It is far
more complicated than that.
In California, which is often touted as the example of how effective
caps are, medical malpractice premiums increased by 190 percent during
the first 12 years following enactment of the $250,000 MICRA cap. It
was not until California's Proposition 103 was enacted that malpractice
premiums were lowered and stabilized.
In Florida, where this issue is being hotly debated, insurers have
made no guarantees to lower their premiums. Even after the Governor
sought to get that assurance by further protecting them from lawsuits,
the industry still refused to guarantee any sort of decrease in rates.
In addition to caps not reducing malpractice insurance premiums, they
are also unfair. Take the case of Janet Pandrea from Coconut Creek.
In January 2002, at the age of 65, Mrs. Pandrea was diagnosed with
cancer in her chest. Janet had been married for 46 years, she had been
a healthy and active mother and grandmother. She was told to begin
chemotherapy treatments, and died from complications after only 2
months.
The doctors did not tell her family why she died so suddenly, so they
requested an autopsy. The autopsy showed that she never had cancer.
Janet should never have been subjected to the chemotherapy that killed
her.
The economic damages for a 65-year-old woman would cover only her
medical bills. Her family would not be able to recover more than
$250,000 for the loss of their wife, mother, and grandmother.
Mr. President, I rise in opposition to this legislation, not because
I do not think that there is a serious problem with the medical
malpractice insurance in this country, but I do not support this bill
because it will not reduce premiums or enhance a physician's ability to
provide care.
Mr. FEINGOLD. Mr. President, I recognize that we have a problem in
this country with malpractice insurance premiums. I would like very
much for Congress to address that problem. It is my judgment that S. 11
will not solve that problem, and it will harm innocent Americans who
have suffered horrible and permanent injury at the hands of negligent
medical practitioners. I will therefore vote no on the cloture motion.
Mr. President, there are many provisions of S. 11 with which I have
serious disagreement. Let me just mention a few. In a provision called
the fair share rule, the bill eliminates joint and several liability in
medical malpractice cases. What that means is that if one responsible
defendant is insolvent and has no insurance coverage, the victim of
malpractice ends up without a full recovery of his or her damages. This
is not fair. Most State laws provide that the risk of one defendant
being insolvent or judgment-proof is borne by the other responsible
defendants. There is no reason to change this longstanding principle of
law.
Another problem with this bill is the new statute of limitations that
the bill imposes on medical malpractice claims. Shorter statutes of
limitation don't discourage frivolous claims, they encourage them.
Lawyers facing a looming statute of limitations have to file lawsuits
to protect their clients' options. Imposing a statute of limitations of
as little as 1 year, as this bill does, does not allow adequate time to
investigate a claim and determine if it is really worth filing.
I am also concerned that this bill has been drafted to protect not
only doctors but medical device manufacturers and drug companies from
liability claims. There is no evidence that suits against these
defendants are contributing to rising medical malpractice insurance
premiums. So this bill is not just a medical malpractice bill, it is a
product liability bill.
But the most ill-advised provision in this bill is the cap on
noneconomic damages of $250,000. At the one hearing held on this issue
this year, the Judiciary and HELP Committees heard from Linda McDougal,
a 46-year-old Navy veteran from Woodville, WI. Last year, Ms. McDougal
underwent a double mastectomy after her biopsy results were switched
with those of another patient. She didn't have cancer, she never had
cancer. We can be thankful for that. But her life, and her family's
life, will never be the same.
I hope everyone in the Senate will read Linda McDougal's testimony
and learn about her experience. It is a powerful cautionary tale for
those of us who are charged with voting on legislation concerning
medical malpractice.
I find it hard to believe that anyone in this body can look Linda
McDougal or any of the thousands of victims of catastrophic medical
malpractice in the eye and say, ``$250,000 is all your pain and
suffering are worth.'' Would any of us be able to tell our mothers or
our wives or our daughters that their damages should be limited to
$250,000 if they were the victims of the unspeakable pain and lifelong
sadness that Linda McDougal will endure? Remember, Linda McDougal
didn't have extraordinary medical bills or lost wages. Her damages are
noneconomic. But her loss is real, it is permanent, it is unfathomable.
There is no question that we have a problem in this country over the
cost of malpractice insurance. But the solution cannot be to penalize
innocent victims like Linda McDougal, to prolong and extend this
suffering by denying them adequate compensation.
We have virtually no evidence that caps on economic damages will
actually lower insurance rates. Indeed, as Senator Durbin noted in this
debate, in
[[Page S9076]]
States that have caps on noneconomic damages, insurance premiums
increased 48 percent from 1991 to 2002. But in States without caps, the
insurance has been only 36 percent. So the case has just not been made
that the caps in this bill will lower malpractice premiums. But more
importantly, the case has not been made, and in my view cannot be made,
that these caps are fair to victims like Linda McDougal.
There very well may be solutions that we in the Senate can develop to
addrsess the cost of medical malpractice insurance in this country and
the effect on patient care that rising premiums are causing. And there
certainly are things we can do to address the disturbing problem of
medical error in this country. The Institute of Medicine estimates that
between 44,000 and 98,000 adverse medical events occur in hospitals
every year.
If we want to reduce malpractice insurance premiums we must address
these problems as well as looking closely at the business practices of
the insurance companies. What we shouldn't do is limit the recovery of
victims of horrible injury to an arbitrarily low sum.
This is obviously a complicated issue. This is the kind of issue that
needs to be explored in depth in our committees so that a consensus can
emerge. It is not the kind of issue that should be brought directly to
the floor with such a great gulf between supporters and opponents. So I
will vote ``no'' on cloture today, and I hope that the bill will go
through the HELP Committee and/or the Judiciary Committee before we
begin floor consideration of this important topic.
Mr. ALEXANDER. Mr. President, I come to the floor today to express my
concern with the rising cost of medical liability insurance. I have
heard from doctors and hospitals from one end of Tennessee to the
other, all concerned with the sky rocketing cost of medical liability
premiums. The increasing cost of medical liability insurance is
creating a patient access crisis because doctors are leaving the
practice of medicine.
At Hardin County General Hospital in Savannah, TN, both an
orthopedist and an OB/GYN have left the hospital to go practice in
other States because their insurance premiums were too high. High
medical liability insurance is one more reason it is difficult to
recruit specialists to rural areas.
At the University of Tennessee Health Sciences Center in Memphis,
young people just entering the profession are being sued at a
horrifying rate, discouraging them from continuing with the practice of
medicine. Since 1990, one third of all residents in training have been
served with a malpractice suit. Some specialties, such as OB/GYN and
Neurosurgery, are being sued so frequently that students are not
pursuing these specialties. This will soon cause a crisis in access to
specialty care.
Tennessee hospitals experienced liability insurance premium increases
of 75 percent to 400 percent last year. Baptist Memorial Health Care
Corporation in Memphis, TN, had liability coverage of $2.7 million for
2002. For 2003, Baptist was quoted $8.3 million for liability coverage.
This is an increase of $6 million in 1 year.
In 2002, the medical liability premium for an OB/GYN in Tennessee was
$62,000. In 2003, the premium more than doubled to $160,000, and in
2004, it is estimated to more than double again to $285,000. This sort
of increased cost is not sustainable. I am worried about who will
deliver babies in my State. Other physicians are also feeling the
squeeze. In 2002, the medical liability premium for a family practice
physician was $44,000. In 2003, the premium increased to $117,000.
Again, this sort of increased cost is not sustainable.
I believe that S. 11, the Patients First Act, is a great step in the
right direction. The Patients First Act will reduce the effects of
excessive liability costs by placing a sensible cap on non-economic
damages. The bill will still allow unlimited economic damages. If a
patient is injured, they will have unlimited access to economic damages
to pay for their recovery.
S. 11 will help stem the tide of rising medical liability premiums
before patients lose access to medical care. I hope we reach cloture on
the motion to proceed so that we can consider this very important
legislation.
Mrs. MURRAY. Mr. President, there is a health care crisis in this
country. Millions of Americans have no health insurance. Insurance
companies continue to increase their premiums and doctors and patients
are the ones who are paying.
In my home State of Washington, our health care system is in trouble.
Some doctors are closing their practices, retiring early, or moving to
other States. We have a shortage of nurses and other medical
professionals. And one in nine Washington State residents do not even
have health insurance.
Doctors in my State are seeing their malpractice insurance premiums
increase by 100 and even 200 percent. At the same time, Medicare,
Medicaid, and private insurance companies are reducing their
reimbursement amounts. These multiple forces have created a perfect
storm for doctors and patients.
In some specialties, like OB GYN, the malpractice insurance market is
out of control. Insurance companies keep jacking up their premiums.
These insurance company increases are simply not sustainable.
I strongly support legislation to correct these problems and to get
skyrocketing insurance premiums back under control. We must help to
stabilize our health care system by making sure that doctors are not
forced out of business by rising insurance rates.
Unfortunately, the proposal before us is not the answer. There are
major flaws with both the process and the substance of the proposal.
First, this bill would preempt State patient rights laws, and give
more protection to HMOs and insurance companies at the expense of real
people who are hurt.
Second, caps on noneconomic malpractice awards have not been
effective at reducing insurance rates in States where they have been
tried; and
Third, this bill is being used as a political club, instead of a real
attempt to find a meaningful solution.
I am deeply disappointed that some Senators would rather play
political games with our Nation's health care instead of trying to find
a real solution.
One problem is that this proposal preempts State patients' right laws
and protects HMOs and insurance companies rather than doctors and
patients.
For the past 3 days Senators have talked about the impact of the
medical malpractice crisis on doctors and patients across the country.
And those who have been following this debate might assume that this
legislation would only provide protection to doctors and hospitals. But
this bill goes much further.
S. 11 also extends additional protections to nursing homes, HMOs,
drug and medical device manufacturers.
Not only does S. 11 provide liability relief for these groups. In
some cases it preempts State patient bills of rights laws and
protections--protections that patients and doctors have fought hard to
achieve.
Since 1997, I have worked to secure passage of a Federal Patient's
Bill of rights to protect patients and to ensure that insurance
companies make decisions based on sound medicine, not profit margins.
Working with doctors and hospitals we have twice tried in the U.S.
Senate to enact a comprehensive Patients' Bill of Rights, but were
defeated by special interests. The foundation of any patients' bill of
rights legislation is holding HMOs accountable for making medical
decisions. Unfortunately, S. 11 would take us in the opposite
direction.
Many States, like my home State of Washington, did not wait for
Federal action to protect patients and doctors. In March 2000,
Washington state enacted a strong Patients' Bill of Rights law that
held HMOs and insurance companies accountable and liable for harm
caused when insurance plans denied or delayed access to recommended
health care services.
The State law also provides a 3-year statute of limitation from the
completion of the independent external review process. But, S. 11 would
preempt this law. It would impose a Federal noneconomic limitation of
$250,000 and would reduce the state of limitation to 1 year.
This is the wrong approach. The Senate leadership is proposing to
substitute the judgment of the Federal
[[Page S9077]]
Government in Washington, DC for the judgment of the State legislature
in Washing State. As insurance has historically been a State, not a
Federal, issue, Congress must be careful about this Federal expansion.
The second problem with this proposal is that caps on malpractice
awards do not necessarily reduce insurance rates.
I have heard my colleagues refer to California's experience as a
model for Federal action, since California has enacted caps. However,
recent data shows that average actual premium rates in California are
actually higher than States that have no such caps, according to the
Medical Liability Monitor.
Across the country, States that have imposed caps on noneconomic
damages, are now seeing similar increases in insurance premiums as
those States without caps. If the goal is to help insurance companies
with their profit margins, then this bill might help. But if the goal
is to help doctors afford to pay for insurance, then this bill will not
help.
Even if caps did force insurance companies to reduce their rates, are
caps fair to patients who were harmed?
We know that as many as 90,000 people a year die from medical errors.
Not all of these errors constitute malpractice, but limiting fair and
just compensation for even a fraction of these individuals and their
families is a major change in our judicial system--and a huge price to
pay in the name of reform.
If this legislation had gone through the appropriate committee
process, Congress might have gotten some answers to these questions,
and the legislation before us might have been helped doctors and
patients.
Unfortunately, this bill was brought forward for purely political
reasons. This is the greatest tragedy of all for doctors and patients.
Some colleagues would use this bill to help their follow partisans
rather than the physicians who need it.
This bill did not go through the standard committee process. There
were no public hearings to get expert testimony to help shape the
legislation. There was no committee markup for the legislation for
Senators to weigh in on the issue.
In fact, there are a number of reports indicating that malpractice
claims are not necessarily responsible for higher insurance premiums.
These reports suggest that it is not the growing number of cases or
even the size awards that are driving premium increases, but rather the
decline in the value of investments for insurance companies.
Without the opportunity to fully understand the problem--with
hearings and markups-Congress cannot develop a real, workable solution.
Instead, some Republicans are exploiting this legislation, according
to the Washington Post, ``as an issue for next year's election.''
In fact, even Republicans have acknowledged that this is not a
serious proposal, but instead is a ``political document.''
A Republican Senator was quoted in the New York Times this morning
discussing this bill. He said the Senate leadership is ``bringing this
bill up to get most of my Democratic friends to vote against it, a
handful of Republicans to vote against it, and they're going to take it
on the campaign trail.''
This is outrageous. Patients are losing their doctors. Doctors are
going out of business. And rather than address a critical problem, the
Senate leadership is playing political games.
So what is the answer?
Clearly, the medical malpractice insurance rates doctors are facing
are untenable. They are a real problem for doctors, for patients, and
for our entire health care community. Every week, I hear from doctors
throughout Washington State about the challenges that soaring
malpractice insurance premiums are causing.
That is why I support the Durbin-Graham proposal to provide immediate
relief to doctors.
When insurance markets are dysfunctional--as they certainly are in
malpractice--the Federal Government has a tradition of providing needed
support. We did that with flood insurance a few years ago, and we did
it again with terrorism insurance in 2001. When an insurance market
fails, there is certainly precedent for Federal corrective actions.
If we can provide relief for terrorism and flood insurance, we should
be able to provide relief for high-risk, critical practices like trauma
and OB GYN services.
While we need to examine every way that we might address this crisis,
as I look at this idea, I am also realistic. Noneconomic damages are
not the only factor impacting insurance premiums. It is not clear to me
that capping just noneconomic damages will really solve the problem. In
addition, malpractice insurance is traditionally a state issue. If the
Federal Government is going to insert itself so dramatically in a State
matter, we need to be sure this approach is going to work.
There are still too many unanswered questions to proceed with this
bill. We know that the status quo is not sustainable, but we need to
recognize that this is a complicated problem and there can be no quick
fixes.
It is time to stop playing politics and start working together to
find solutions and heal our ailing system.
Mr. EDWARDS. Mr. President, I speak out for ordinary people.
We all recognize that we need to do something about the medical
malpractice problem in this country. Premium rates are too high and, in
some cases, drive away the medical care these people need. I have
spoken out loud and clear about this issue and recently published an
op-ed piece in the Washington Post calling for common sense provisions
included in our bill, which I am proud to cosponsor.
The PRESIDING OFFICER. I ask unanimous consent to have that printed
following my remarks. Without objection, it is so ordered.
Mr. EDWARDS. We have to do something about this problem. But the
answer is not to slap down the victims, which is exactly what the
Republican plan will do.
This is nothing new. Time and again, we have seen this administration
and the Republican majority stand up for corporate interests with
little regard for the people who will be harmed by this rush to protect
big business. This time it is the malpractice insurance companies who
are being protected at the expense of ordinary people.
S. 11 comes right off the insurance companies' wish list. It might as
well have been written by the insurance companies. It drastically
limits the compensation these companies have to pay children and
parents who have been blinded, paralyzed or otherwise severely injured.
The victims who make the least money will suffer the most under this
plan. The harm to the kinds of families I represented as a lawyer for
nearly 20 years will be enormous. We need to stand up for these people.
We need to fight for people like little Tristan Lewis, who lives in
my State of North Carolina. Tristan was born 3 months premature, but
her early signs were good. She was breathing on her own and had scored
eight out of 10 on the APGAR tests, used to rate newborn babies.
Unfortunately, nurses attempted to warm Tristan with heated IV saline
bags that burned the tiny girl. They heated the bags in a microwave
without doctor approval; they failed to check the temperature of the
bags, and then left Tristan on the boiling hot bags for over 10
minutes, even though she was crying loudly.
Black burns covered much of Tristan's back. The third-degree burns
had penetrated her skin. Nine days after she was born, Tristan was sent
to another hospital for a surgery, commonly needed by premature babies,
to close a blood vessel near her heart. The doctors there discovered a
dangerous infection. Tristan had meningitis, which likely entered her
little body through the burn wounds. Tristan spent most of her first
year in the hospital and she had more than a dozen surgeries.
The pain and complications of the burns increased Tristan's blood
pressure and caused or aggravated bleeding inside her brain. The
bacteria that led to her meningitis probably entered her body through
the burn wounds, where the skin's ability to serve as a barrier against
infection had been weakened.
[[Page S9078]]
Tristan, who is now 7, is legally blind. Her eyes bring in images,
but her brain cannot process them. She is fed through a tube.
Antiseizure medications make her groggy, so she spends most days
sleeping. Tristan has no purposeful movement and cannot communicate.
The hospital's insurance company agreed to settle the case. Now
Tristan's mother knows that her little girl will always have what she
needs.
But if the administration had its way, the hospital would have been
less likely to settle the case and Tristan would have been limited to
$250,000 for her ``noneconomic'' suffering. That is just not right. It
is wrong to try to protect the profits of big insurance companies at
the expense of victims like little Tristan.
But every time we point out these inequities, we are shouted down
with cries of ``class warfare!'' Well, the American people need to hear
the truth. We are engaging in class warfare. What we have here is a
fight for fairness.
The Republican plan is just plain, flat out unfair. And it won't
work. It penalizes the worst injured people but it doesn't do a thing
to solve the problem. It doesn't do anything to punish the bad lawyers
while rewarding the good. It doesn't do anything to make doctors
accountable for bad behavior. All this plan does is save insurance
companies money by slamming the courthouse door in the face of innocent
victims who have nowhere else to turn. But it doesn't require them to
pass along one cent of this savings to doctors. So victims lose,
doctors get nothing, and the insurance companies get richer. How can
anyone claim that is fair?
Our plan is fair and it will work. It will work because it cracks
down on price gouging by the insurance industry and takes aggressive
action against lawyers who bring frivolous lawsuits that don't belong
in court.
We have got to reform the insurance industry, something the
Republican plan completely sidesteps. Today insurance companies use
slow and burdensome processes to discourage both doctors and patients
from filing legitimate claims. Worse still, these companies can fix
prices and divvy up the country in order to drive up their profits.
Even when companies don't explicitly collude, they set their rates
based on a trade-group loss calculation that they know other companies
will follow. In any other industry, this kind of conduct would be
subject to scrutiny under the antitrust laws. But an obscure 1945 law
gives insurance companies a broad antitrust exemption. Because of the
insurance lobby's influence, Congress has even blocked the Federal
Trade Commission from investigating insurance company rip-offs. These
special privileges have go to go and our plan does just that.
Next, we need to prevent and punish frivolous lawsuits. The vast
majority of lawyers are responsible advocates for their clients, but
the few who aren't hurt the real victims, make a bad name for the good
lawyers and clog up our courts. But for all his talk about frivolous
lawsuits, President Bush does nothing to address them. He has got it
backward--instead of cracking down on irresponsible behavior and
baseless cases, he is targeting serious victims who win in court and
are believed by juries.
Our plan requires that before a lawyer can bring a medical
malpractice case to court, he or she must file an affidavit from a
qualified health specialist verifying that real malpractice has
occurred. Lawyers who file frivolous cases will face tough, mandatory
sanctions. Lawyers who file three frivolous cases will be punished
severely--in other words, three strikes and they are out.
And, while it is important to clamp down on frivolous lawsuits, we
also must do everything we can to prevent malpractice in the first
place. That is why our plan includes measures that will help patients
avoid doctors with bad track records.
And, finally, our plan enhances patient access to quality health care
by easing the burdens imposed on doctors by out-of-control insurance
companies. First, it repeals the special interest antitrust exemption
that allows insurance companies to collude and jack up premium rates
with impunity. Second, it provides a tax credit for malpractice
premiums paid, based upon the nature of risk in their areas of
practice. And, third, our plan will help stem the tide of health care
providers being driven out of certain geographic areas by out-of-
control insurance rates by, among other things, providing grants and
tax credits to areas experiencing shortages.
Our plan is fair, it is reasonable, and it will work. The Republican
plan is not only mean-spirited, but it won't do a thing to solve the
problem it is supposed to address. Their plan doesn't do a thing but
build more wealth for big insurance companies on the backs of ordinary
people who have already suffered too much. And I won't stand by and let
that happen. None of us should. That is why I urge all of my colleagues
to stand up for what is right and fight for fairness by voting no on S.
11.
[From the Washington Post, May 20, 2003]
Let's Keep Doctors in Business
(By John Edwards)
The rising cost of malpractice insurance for doctors is
getting in the way of good health care. In rural areas, some
specialists can no longer afford to practice, and patients
can't get the care they need. We need to fix this problem
now, and we need to fix it in a way that is consistent with
the doctors' own Hippocratic Oath: First, do no harm.
Unfortunately, President Bush's proposed prescription comes
straight off the insurance companies' wish list: a sharp
limit on the compensation these companies have to pay
children and parents who have been blinded, paralyzed or
otherwise severely injured. The victims who make the least
money will suffer the most under this plan. The harm to the
kinds of families I represented as a lawyer for nearly 20
years will be enormous.
What the president's proposal won't do is work. Insurance
premiums have spiked recently because of insurance companies'
losses on their investments, not their losses to victims. In
fact, about half the states already have some limits on
victim compensation, yet premiums in states with caps average
about the same as premiums in states without caps. California
finally controlled rates not by attacking victims--that
didn't work--but by reforming the insurance industry and
rolling back premium increases.
We need a real solution that frees doctors from crippling
insurance costs--without preventing the most badly injured
victims from receiving the compensation they deserve.
That real solution has three elements. Most important, we
need to crack down on price gouging by the industry. We also
need aggressive action against frivolous lawsuits that don't
belong in court--not against the serious lawsuits that bring
help to the most badly injured. And finally, we need to
reduce the number of medical errors, many made by a very
small fraction of the medical profession.
The most critical step is reforming the insurance industry.
Today insurance companies use slow and burdensome processes
to discourage both doctors and patients from filing
legitimate claims. Worse still, these companies can fix
prices and divvy up the country in order to drive up their
profits. Even when companies don't explicitly collude, they
set their rates based on a trade-group loss calculation that
they know other companies will follow. In any other industry,
this kind of conduct would be subject to scrutiny under the
antitrust laws. But an obscure 1945 law gives insurance
companies a broad antitrust exemption. Because of the
insurance lobby's influence, Congress has even blocked the
Federal Trade Commission from investigating insurance company
rip-offs. These special privileges must go.
Next, we need to prevent and punish frivolous lawsuits.
Most lawyers are responsible advocates for their clients, but
the few who aren't hurt the real victims, undercutting the
credibility of the legal system and clogging our courts. For
all his talk about frivolous lawsuits, President Bush does
nothing to address them. He's got it backward--instead of
cracking down on irresponsible behavior and baseless cases,
he's targeting serious victims who win in court and are
believed by juries.
Before a lawyer can bring a medical malpractice case to
court, we should require that he or she swear that an expert
doctor is ready to testify that real malpractice has
occurred. Lawyers who file frivolous cases should face tough,
mandatory sanctions. Lawyers who file three frivolous cases
should be forbidden to bring another suit for the next 10
years--in other words, three strikes and you're out.
Finally, we can reduce malpractice premiums by helping to
reduce malpractice. The Institute of Medicine found that at
least 44,000 people die from preventable medical errors every
year. In medicine, as in law, a few people cause the most
problems: Only 5 percent of doctors have paid malpractice
claims more than once since 1990. This same 5 percent are
responsible for more than half of all claims paid. One part
of the problem is state medical boards whose discipline is as
lax as state bar associations'. We need to provide resources
and incentives for boards to adopt real standards on the
``three strikes'' model. At the same time, we need to
encourage doctors to report more medical errors voluntarily,
so we can learn more about systemic problems.
Together these measures will give relief to most doctors
who are suffering under the
[[Page S9079]]
staggering weight of insurance premiums. But where premiums
still cause shortages of medical care, Washington must
provide a temporary subsidy so good doctors can continue
their essential work. We shouldn't be padding insurers'
profits and hurting people who have already suffered
immensely, as the president proposes. But we should be
protecting good doctors and the patients who depend on them.
The writer, a Democratic senator from North Carolina, is
seeking his party's nomination for president.
Mr. JOHNSON. Mr. President, I support the bipartisan medical
malpractice alternative legislation, a bill that is more comprehensive
than the bill previously being considered on the floor, S. 11, called
the Patient First Act. I want to thank Senators Durbin and Lindsey
Graham for their leadership and hard work on this issue, and I am proud
to be a cosponsor of the alternative, which really begins to address
the root of the medical malpractice premium problem, rather than just
attempt a quick fix as does the approach found in Senator Ensign's
legislation.
In South Dakota, we already have a cap on noneconomic damages at
$500,000, which has been in effect since 1997. While some are claiming
that caps are supposed to reduce premiums doctors pay, this issue is
not that cut and dried. The Medical Liability Monitor found that in
South Dakota, prior to 1997, medical malpractice premiums charged by
some insurers were being maintained or on the decline, while for others
rates were going up. And these rates varied across specialty. For
example, in 1996 the premium rate went up for general surgery across
two insurers, while one company increased premiums for internal
medicine and OB/GYN and another insurer reduced rates for those exact
same specialties. Since the implementation of caps in my State, rates
initially declined, but in 2002 rates jumped as high as 20 percent over
the previous year. This would indicate that caps are not the quick fix
that Republicans would like you to believe is needed.
Generally, my feeling is that caps are really a State issue and that
we should spend our time focusing on how to prevent the need for
malpractice in the first place, through measures to reduce medical
errors and improve patient safety. Beyond my overall view of this
issue, I am disappointed that our Republican colleagues have taken the
issue of medical malpractice, which touches the core of these important
patient care issues, and are using it for politically motivated
purposes. This legislation has not had any hearings in the Health,
Education, Labor and Pensions or Judiciary Committee. It has not been
given careful consideration in a bipartisan way prior to the majority
leader bringing it to the floor. This is not the way we get things done
in the Senate and this is one of the reasons why I cannot support S.
11.
I also cannot support S. 11 because it is crafted in such a way that
has broad implications across the health care continuum. This bill's
supporters will try and tell you that it is only about doctors'
abilities to continue to provide care to patients. While I do recognize
that this is of significant concern and support measures to bring down
the cost of medical malpractice premiums, this bill goes far beyond
that. S. 11 represents a broad, sweeping initiative that would apply
not only to lawsuits against doctors, but to all health care lawsuits,
thereby shielding HMOs, drug companies, nursing homes, hospitals, and
medical device manufacturers who injure patients.
And what is equally disturbing is that this so-called fix is not even
considered the solution by all doctors, some who have conceded that
this legislation would not reduce their malpractice premiums for 3 or 4
years. This legislation also discriminates against the most vulnerable:
the aged, children and low-income. By placing a cap on noneconomic
damages, it says to those with lesser earning potential--``your lives
mean less and a small pot of money for the rest of your life is enough,
irrespective of how much of your quality of life has been taken from
you.'' I cannot support this mindset and would prefer to approach this
issue more comprehensively and without discriminatory practices.
As mentioned, we have learned that caps do not necessarily translate
to lower premium rates. Studies have examined this issue and results
are found on both sides, some finding that caps do reduce malpractice
premiums, while others find the exact opposite. This says to me that we
do not have the sound evidence needed to say that caps are the way to
go. Because of this, we must be looking at other creative ways to
address this issue that is forcing many doctors, especially those in
high-risk specialties, to leave practice. That is why I support the
Durbin/Graham alternative, which takes a critical look at the causes of
high malpractice premiums and seeks to address them.
The Durbin/Graham alternative does provide some relief to doctors
through tax credits for malpractice premium rates. It also provides a
voluntary system to share medical error information through a database
that is immune from legal discovery and will improve patient safety. It
addresses issues related to frivolous lawsuits and provides some
protection from punitive damages for health professionals participating
in federally funded programs. This alternative finally addresses
Federal antitrust exemptions enjoyed very broadly by insurance
companies in an effort to diminish their opportunity to collude and set
rates. These initiatives get at the root of the medical malpractice
problem and are a step in the right direction. I urge my colleagues to
vote against cloture on the motion to proceed to S. 11 and work
together to embrace the Durbin/Graham alternative.
Mr. McCAIN. Mr. President, Americans are fortunate to enjoy some of
the best medical care available in the world. If we do not reform the
current system, however, our good fortune will not last. Medical
malpractice reform looms as one of the most critical factors negatively
impacting our Nation's health care system. In the year 2000, doctors
alone spent $6.3 billion on medical malpractice insurance coverage.
That does not take into consideration coverage paid for by hospitals,
nursing homes, and other groups.
Originally intended to provide patients with security by improving
quality and providing fair and equitable compensation for valid claims,
our Nation's medical malpractice system has only succeeded in adding
billions of dollars a year to the cost of health care, while reducing
patient access to physicians and treatment. The current system is
broken.
Qualified doctors with years of valuable experience are leaving the
medical field in droves. Some are opting for early retirement, while
others are changing fields. Many physicians, particularly those in
high-risk specialties, are moving to States that have implemented
reforms or are opting to scale back their practices. Discouraged by the
current system, many of today's medical students cite medical
malpractice as a major factor in their choice of fields.
Rural areas have been hit particularly hard. In Arizona, our rural
hospitals are struggling to keep qualified doctors. In our border
region, where hospitals already struggle with the high cost of
uncompensated care due to illegal immigrant populations, the Copper
Queen Hospital in Bisbee has been without an obstetrician for over a
year because of the high cost of medical malpractice insurance. Because
of this void, pregnant women in southeastern Arizona have had to drive
extremely long distances to reach the nearest hospital with an
obstetrician.
Earlier this year, the daughter of a hospital board member gave birth
on the side of the highway as she and her husband drove over a mountain
pass to the nearest hospital in Sierra Vista. Fortunately for Bisbee
and the surrounding areas, a local community health center, which is
shielded from high liability costs by Federal law, recently received a
Federal grant to develop a birthing facility. Now, the community will
be able to retain obstetricians and pregnant women will be assured
access to vital prenatal care.
Unfortunately, patients suffer most from the failures of our current
system. Not only are patients losing access to qualified doctors, they
are also losing health care coverage, substantially contributing to the
rising numbers of uninsured Americans, most recently estimated at over
41 million. A recent study by Pricewater-
houseCoopers found that 7 percent of the rise in health care costs are
due to litigation and risk management. Those skyrocketing health care
costs are
[[Page S9080]]
passed from health insurance companies to employers, making it more
difficult for American businesses to provide coverage to employees.
Businesses today pass a larger share of the cost burden on to employees
than ever before, and many, particularly small businesses, have made
the difficult decision to drop employee coverage entirely.
This morning, the Senate voted on the motion to invoke cloture on, S.
11, the Patients First Act of 2003. I voted to invoke cloture on this
bill, not because I believe it is the perfect solution to this crisis,
but because I believe that our Nation's medical malpractice system is
broken and we must begin debating viable solutions. I have long
supported tort reform generally, and medical malpractice in particular,
because the current system is unfair and inefficient.
Unfortunately, the medical malpractice debate has been polarized by
two powerful special interest groups, preventing necessary compromise
and real reform. On one side, the trial lawyers, fearing the loss of
enormous jury awards, have fought tooth and nail against any cap on
non-economic damages. Similarly, the insurance industry and other
medical special interest groups have been equally unwilling to
compromise on the dollar amount of these caps. As long as this body
remains polarized in between these two competing interests, we will not
have real reform and the American people will suffer.
Under the bill considered today, patients would be able to recover
the full cost of medical expenses coupled with past and future wage
losses through unlimited economic damages. To address exorbitant jury
awards for non-economic damages, this bill, caps non-economic damages
at $250,000, while allowing states the flexibility to maintain their
own caps. A federally imposed ceiling would be a tremendous help to
States like Arizona that require State constitutional amendments in
order to implement medical liability reform.
The reality is, we know that caps on damages do successfully reduce
the cost of medical malpractice insurance. Malpractice rates
nationally, have risen three times faster than in California, where
caps have been in place for twenty years. Similarly, a recent study by
the Agency for Healthcare Research and Quality found that states that
enacted limits on non-economic damages have 12 percent more doctors per
capita than states without caps.
Although I support reform efforts, I am concerned that $250,000 may
not be a realistic amount at which to cap non-economic damages. I
recognize that although the state-imposed cap of $250,000 has
functioned well in California, there are also certain medical errors
which are difficult, if not impossible to put a price tag on.
Additionally, I believe any medical malpractice reform legislation
must be coupled with meaningful measures to address the alarming
numbers of medical errors in this country. A 1999 study by the
Institute of Medicine found that upwards of 98,000 people a year die of
medical errors. Congress must address this escalating problem,
particularly in the context of the current debate. Bipartisan
legislation establishing medical error reporting requirements passed
the House and will hopefully pass the Senate later this year, however
much more can and should be done on this issue.
I believe a majority of my colleagues in the Senate agree that there
does exist a serious problem in our Nation, that patients and doctors
are suffering as a result, and something must be done. When the Senate
voted this morning to invoke cloture, this bill did not have the votes
necessary to continue debate. In fact, it did not even garner a
majority vote. If we are truly committed to addressing this important
issue, we must put special interests and partisan politics aside and
work together to craft an equitable compromise.
Mr. LEAHY. Mr. President, I am disappointed that the majority appears
to be playing politics with the medical malpractice insurance debate.
This is a complex issue, and the bill before us would encroach on the
rights of every state and would take away the legal rights of the
American people. Great care is in order as Congress considers such
steps. But instead of introducing a bipartisan bill and sending it
through the committee process to reach consensus, the majority is
rushing a partisan bill directly to the Senate floor. That is highly
unfortunate, because our health care system is in crisis. We have heard
that statement so often that it has begun to lose the force of its
truth, but that truth is one we must confront, and the crisis is one we
must abate.
Dramatically rising medical malpractice insurance rates are forcing
some doctors to abandon their practices or to cross state lines to find
more affordable situations. Patients who need care in high-risk
specialties--like obstetrics--and patients in areas already underserved
by health care providers--like many rural communities--are too often
left without adequate care.
We are the richest and most powerful nation on earth. We should be
able to ensure access to quality health care to all our citizens and to
assure the medical profession that its members will not be driven from
their calling by the manipulations of the malpractice insurance
industry.
The debate about the causes of this latest insurance crisis and the
possible cures grows shrill. I had hoped for a calmer and more
constructive discussion within the Senate Judiciary Committee and on
the Senate floor. My principal concerns are straightforward: That we
ensure that our nation's physicians are able to provide the high
quality of medical care that our citizens deserve and for which the
United States is world-renowned, and that in those instances where a
doctor does harm a patient, that patient should be able to seek
appropriate redress through our court system.
To be sure, different States have different experiences with medical
malpractice insurance, and insurance remains largely a State-regulated
industry. Each State should endeavor to develop its own appropriate
solution to rising medical malpractice insurance rates because each
State has its own unique problems. Some States--such as my own,
Vermont--while experiencing problems, do not face as great a crisis as
others. Vermont's legislature is considering legislation to find the
right answers for our State, and the same process is underway now in
other States.
In contrast, in States such as West Virginia, Pennsylvania, Florida,
and New Jersey, doctors are walking out of work in protest over the
exorbitant rates being extracted from them by their insurance carriers.
Thoughtful solutions to the situation will require creative thinking,
a genuine effort to rectify the problem, and bipartisan consensus to
achieve real reform. Unfortunately, these are not the characteristics
of the bill before us. Indeed, S. 11 is a partisan bill that was
introduced only a few days ago without any committee consideration.
Ignoring the central truth of this crisis--that it is a problem in the
insurance industry, not the tort system--the majority has proposed a
plan that would cap non-economic damages across the nation at $250,000
in medical malpractice cases. The notion that such a one-size-fits-all
scheme is the answer runs counter to the factual experience of the
states.
Most importantly, the majority's proposal does nothing to protect
true victims of medical malpractice and nothing to prevent malpractice
in the first place. A cap of $250,000 would arbitrarily limit
compensation that the most seriously injured patients are able to
receive. The medical malpractice reform debate too often ignores the
men, women and children whose lives have been dramatically--and often
permanently--altered by medical errors. The experience of Linda
McDougall, who testified a few months ago before the Senate Judiciary
Committee, is just one tragic example of such an error. Mrs. McDougal
is recovering from an unnecessary double mastectomy, and her testimony
reminded us all of the real-life consideration of these issues.
Arbitrarily limiting injured patients' remedies under the law without
addressing the system-wide medical errors that result in patient harm
and death is a recipe for failure.
The majority's proposal would prevent individuals like Linda
McDougall--even if they have successfully made their cases in courts of
law--from receiving adequate compensation. We
[[Page S9081]]
are fortunate in this nation to have many highly qualified medical
professionals, and this is especially true in my own home state of
Vermont. Unfortunately, good doctors sometimes make errors. It is also
unfortunate that some not-so-good doctors manage to make their way into
the health care system as well.
While we must do all that we can to support the men and women who
commit their professional lives to caring for others, we must also
ensure that patients have access to adequate remedies should they
receive inadequate care.
High malpractice insurance premiums are not the direct result of
malpractice lawsuit verdicts. They are the result of investment
decisions by the insurance companies and of business models geared
toward ever-increasing profits as well as the cyclical hardening of the
liability insurance market. In cases where an insurer has made a bad
investment, or has experienced the same disappointments from Wall
Street that so many Americans have, it should not be able to recoup its
losses from the doctors it insures.
The insurance company should have to bear the burdens of its own
business model, just as the other businesses in the economy do. And a
nationwide arbitrary capping of awards available to victims--as the
majority has proposed here this week--should not be the first and only
solution turned to in a tough medical malpractice insurance market. The
problem at hand deserves thoughtful and collaborative consideration in
committee to achieve a sensible solution that is fair to patients and
that supports our medical professionals in their ability to practice
quality health care.
One aspect of the insurance industry's business model requires a
legislative correction--its blanket exemption from federal antitrust
laws. Insurers have for years--too many years--enjoyed a benefit that
is novel in our marketplace. The McCarran-Ferguson Act permits
insurance companies to operate without being subject to most of the
federal antitrust laws, and our nation's physicians and their patients
have been the worse off for it.
Using their exemption, insurers can collude to set rates, resulting
in higher premiums than true competition would achieve--and because of
this exemption, enforcement officials cannot investigate any such
collusion. If Congress is serious about controlling rising premiums, we
must objectively limit this broad exemption in the McCarran-Ferguson
Act.
In February, I introduced the ``Medical Malpractice Insurance
Antitrust Act of 2003,'' S. 352. I want to thank Senators Reid,
Kennedy, Durbin, Edwards, Rockefeller, Feingold, Boxer and Corzine for
cosponsoring this essential and straightforward legislation. Our bill
modifies the McCarran-Ferguson Act with respect to medical malpractice
insurance, and only for the most pernicious antitrust offenses: price
fixing, bid rigging, and market allocations. Only those anticompetitive
practices that most certainly will affect premiums are addressed.
I am hard-pressed to imagine that anyone could object to a
prohibition on insurance carriers' fixing prices or dividing
territories. After all, the rest of our nation's industries manage
either to abide by these laws or pay the consequences.
Many State insurance commissioners police the industry well within
the power they are accorded in their own laws, and some states have
antitrust laws of their own that could cover some anticompetitive
activities in the insurance industry. Our legislation is a scalpel, not
a saw. It would not affect regulation of insurance by state insurance
commissioners and other state regulators. But there is no reason to
continue, unexamined, a system in which the Federal enforcers are
precluded from prosecuting the most harmful antitrust violations just
because they are committed by insurance companies.
Our legislation is a carefully tailored solution to one critical
aspect of the problem of excessive medical malpractice insurance rates.
I had hoped for quick action by the Judiciary Committee and then by the
full Senate to ensure that this important step on the road to genuine
reform is taken before too much more damage is done to the physicians
of this country and to the patients they care for.
But our legislation to narrow this loophole in the nation's anti-
trust laws for medical malpractice insurers has languished for months
in the Senate Judiciary Committee. Instead of conducting hearings and a
markup on our bill, the majority now rushes a ``tort reform'' agenda
item to the floor without any committee consideration.
I want to comment for a moment on why committee consideration is so
important to building the consensus needed to enact serious legislation
to address the serious issue of rising medical malpractice premiums.
During the last Congress, some of my colleagues on the other side of
the aisle complained about the lack of committee consideration of
prescription drug legislation. This year, we had committee
consideration of a bipartisan bill and the Senate passed prescription
drug legislation.
Last year, during that debate, Senator Lott said: ``If we bring these
important issues to the Senate floor without them having been worked
through committee, it is a prescription for a real problem . . . .''
Last year on the Senate floor, Senator Nickles declared: ``What
happened to the committee process? Shouldn't every member of the
Finance Committee have a chance to say, I think we can do a better job?
Maybe we can do it more efficiently or better. No, we bypass the
committee and take it directly to the floor.''
And Senator Snowe, one of the Senate's most thoughtful members,
wisely pointed out: ``I think each of us here knows that without a
markup in the committee we are creating a predetermined train wreck. We
are heading for a train wreck because we are creating a process
designed for failure. It is designed for politics. It is not designed
for creating a solution to a serious problem.''
If Congress is serious about controlling rising medical malpractice
insurance premiums, then we must limit the broad exemption to federal
antitrust law and promote real competition in the insurance industry,
as well as attack this problem at its core by reducing medical errors
across our health care system. Unfortunately, the partisan bill before
us is not designed for creating a solution to a serious problem.
Instead, it is designed purely for politics.
The PRESIDING OFFICER. The Senator from Illinois is recognized.
Mr. DURBIN. Mr. President, how much time is remaining on this side?
The PRESIDING OFFICER. Four minutes.
Mr. DURBIN. On the other side?
The PRESIDING OFFICER. They have 10 minutes.
Mr. DURBIN. I am happy to yield to the other side unless they are
going to use the entire 10 minutes and then I will use my 4.
Mr. McCONNELL. I ask the Senator from Illinois, what is the time
situation?
Mr. DURBIN. Ten minutes on his side, 4 minutes on my side.
Mr. McCONNELL. And the suggestion of the Senator was?
Mr. DURBIN. If the Senator is going to divide it and would like to
have one speaker and then I will speak and he can close.
Mr. McCONNELL. I was going to split the time with Senator Ensign and
use the last 5 minutes. Does the Senator from Illinois want to be the
last speaker?
Mr. DURBIN. I defer to the Senator. I believe that as proponents of
the bill, the Senator should have the last word. If the Senator is
going to divide his time, I would just suggest that one of his speakers
go first, I speak, and then the Senator be the last speaker.
Mr. McCONNELL. Let me ask if my friend from Nevada is ready to
proceed?
He will be ready momentarily.
Mr. DURBIN. I will use my 4 minutes.
First, I thank my colleagues on both sides of the aisle. Although we
disagree on the approach, and I certainly do not support S. 11, I
encourage all of my colleagues in the Senate to join me in stopping
this bill from moving forward. This is too important to come to the
floor without a committee hearing, without deliberation. It is unfair
to address the medical malpractice premium crisis in America by simply
saying that victims of malpractice shall be limited in what they can
receive from a court.
[[Page S9082]]
It is unfair for us to put ourselves in the place of a jury. If we are
going to deal with the malpractice insurance crisis that faces us, let
us do it in an honest and complete fashion.
Early in this debate, I told the story about David from the small
town in downstate Illinois. At 6 years of age he went in with a high
fever and because of medical negligence and medical errors, this 6-
year-old boy became a quadriplegic. He is unable to communicate with
others. He breaths through a tracheotomy stoma and is fed through a
gastrointestinal tube. They believe he understands what is being said,
but he is unresponsive. He is now 17 years of age. His mother has quit
her job at a local college to be with him full time.
The decision of this bill is that in cases such as David's what they
are going to go through the rest of their lives, David and his family,
is worth no more than $250,000 in pain and suffering.
This verdict by this jury in the Senate is unfair. I say to doctors
across America who have a genuinely serious problem that needs to be
addressed, the love and compassion you give to your patients, the
commitment you made to your patients is inconsistent with the message
of this bill. I believe doctors in my home State and those I have met
with in other places are some of the finest people with whom I have
ever worked. I genuinely want to work with them to deal with
malpractice premiums that are much too high, by reducing the incidence
of malpractice, by saying to insurance companies, just because you made
a bad investment does not mean you will run a doctor out of business--
that is what is happening with these high premiums--and by saying as
well to the legal profession, the bad actors have to get out of the
courtroom; stop harassing doctors with frivolous lawsuits. That is
relatively uncommon, but where it occurs in one case, that is one case
too many.
We need to come together after this bill is stopped today in a good-
faith, bipartisan effort as we did on the terrorism insurance issue. We
need to bring in the AMA, the bar association, the trial lawyers, the
insurance companies, and all parties that can come to a good solution.
We need to do it quickly. We need a tax credit for doctors right now.
We do not need to pass a bill that might help them 8 or 10 years from
now; we need to pass a tax credit now, so they can get through this
troublesome period where the insurance companies have seen the bottom
fall out of their investment and are charging these high premiums. That
is the fair way to deal with it.
Please, do not close off a day in court for deserving victims of
medical malpractice.
The PRESIDING OFFICER. The Senator from Nevada.
Mr. ENSIGN. Mr. President, what is this about today? What are we
really talking about? We are talking about access to health care by
patients. We have enacted reasonable limits in this bill so the crisis
facing 19 States and the patients in 19 States across this country can
be resolved.
The problem is caused by out-of-control jury awards and frivolous
lawsuits which are cheaper to settle--and those get settled all the
time--than they are to fight. The reason they will settle them is the
potential huge award and the huge downside risk they have down the
line. A lot of insurance companies just settle those and pass the
higher rates on to doctors. That has led to many physicians leaving
those 19 States in crisis and a lot of new doctors not going into the
specialties which are in short supply.
If we ask ourselves the fundamental question, Is there a shortage of
doctors or is there a shortage of lawyers? we do not have a shortage of
lawyers in my State home state of Nevada, or in any other State, as far
as I know. We do not have any shortage of people going into the
practice of law. We do have a shortage of people going into the
practice of a lot of the specialties in health care. The reason is that
we have a jury system that is out of balance. We did not used to live
in this litigious society of today. People are so sue happy and the
system is set up to encourage frivolous lawsuits.
California and Colorado are the two best examples we have of medical
liability reform that has been on the books long enough. We know it
works. Victims get what they deserve in those States, but the system is
balanced so doctors can afford their premiums on medical liability.
That is what the bill before the Senate today lays out, a model very
similar to Colorado and California for the rest of the country.
I encourage all of our colleagues to at least vote for the motion to
proceed to the bill so we can have a full debate with amendments to
proceed to solve this severe crisis we have in access to health care
across the country.
The PRESIDING OFFICER. The assistant majority leader.
Mr. McCONNELL. The vote we are about to have is not about the details
of the underlying bill, it is about whether we think there is a medical
malpractice crisis in America and whether we ought to do something
about it. If we were able to get on the bill, it would obviously be
open to amendment and we would see how the Senate felt, that some issue
ought to be addressed.
The Senator from Nevada, the floor leader on this subject, says 19
States are currently in crisis and 25 are on the way to crisis, while
only 6 of our 50 States are OK as far as the price of medical
malpractice premiums not driving physicians out of work is concerned.
It has been incredibly stated on the other side of the aisle by
numerous speakers that this crisis has nothing to do with runaway
judgments. I don't know how you can reach that conclusion. The people
at CBO and the Department of Health and Human Services and the Joint
Economic Committee, insurance commissioners, actuaries, all believe
this crisis is related to runaway judgments.
California, which we keep referring to, has the model system after
which the underlying bill has been modeled. My friends on the other
side of the aisle think this crisis has been created by something else.
They have been suggesting it is bad returns from the stock market or
insurance company collusion, or a cadre of quacks who are causing
problems for medicine. I don't know whether all of that has made some
contribution, but we know there is one solution that works, and that is
the California approach. That is what is in the underlying bill.
We ought to at least recognize this is a national crisis, a national
problem that ought to be dealt with at the national level. We will have
an opportunity to find out whether the Senate agrees with that shortly
when we vote on cloture on the motion to proceed. I hope the Senate
will give us an opportunity to get to the underlying bill. It would
then be open to all kinds of amendments and we could begin to proceed,
as we normally do in the Senate, in crafting legislation to deal with
national problems.
We urge our colleagues to vote for cloture on the motion to proceed.
Mr. FRIST. Mr. President, today we will be voting on a cloture motion
to allow the Senate to proceed to debate S. 11, the Patients First Act.
I want to strongly urge my colleagues to vote for the motion to
proceed.
We have had a good debate over the last three days, and it is clear
that right now patients across the country are facing a crisis of
access to quality health care. Congress needs to act.
The upcoming vote will allow us to fully debate this critical issue.
If action is delayed, we know what will happen: Patients will suffer,
doctors will continue to flee their practices, and more States will be
added to the AMA crisis list. Since we last debated this issue seven
more States have joined the list, that is nearly a 60 percent increase
over last year.
I have received letters from doctors all over America, including from
my home State of Tennessee. Premiums in Tennessee have gone up 68
percent over the last four years, and Tennessee is not even considered
a crisis state by the AMA yet.
One doctor from Waverly, TN writes:
My insurance premiums as a general surgeon have jumped over
70 percent in the last four years. The current crisis has
forced me to limit doing any moderate to high risk surgery .
. .
There are counties around mine that have lost the services
of their general surgeons who have opted to limit their
practices to family practices . . . rather than continue to
pay the high premiums that are prohibitive for a surgeon in
rural Tennessee.
Another doctor from Madisonville, TN writes:
[[Page S9083]]
My wife and I came to Madisonville, Tennessee, 24 years ago
as national health service corps doctors. We helped start the
Women's Wellness and Maternity Center, Tennessee's first out
of hospital birth center. We depend on the obstetrical
service at Sweetwater Hospital for C-sections and
consultation.
This doctor goes on tell me that because of high malpractice premiums
Sweetwater has only one remaining obstetrician who is now forced to
bear full responsibility for providing 24-hour maternity coverage and
that efforts to recruit additional doctors have failed.
As these real life stories show, this health care crisis is real and
it is spreading. The current medical liability system is costly,
inefficient and hurts all Americans. In addition to damaging access to
medical services, the current medical malpractice system creates
problems throughout the entire health care system.
It indirectly costs the country billions of dollars every year in
defensive medicine. The fear of lawsuits forces doctors to practice
defensive medicine by ordering extra tests and procedures. Though the
numbers are hard to calculate, well-researched reports predict savings
from meaningful reform at tens of billions of dollars per year.
It directly costs the taxpayers billions. The CBO has estimated that
reasonable reform will save the federal government $14.9 billion over
10 years primarily through savings in Medicare and Medicaid.
It impedes efforts to improve patient safety. The threat of excessive
litigation discourages doctors from discussing medical errors in ways
that could dramatically improve health care and save hundreds or
thousands of lives. I am a strong supporter of patient safety
legislation which I hope we will pass this year. But in addition to
patient safety legislation, we need to address the underlying problem--
our liability system.
We must reform this broken liability system. That is why I strongly
support the Patients First Act. I want to thank my colleague, Senator
McConnell, the majority whip, who skillfully led this debate. I also
want to thank Chairman Gregg and Chairman Hatch for their longstanding
leadership of this issue, and Senator Ensign, the lead sponsor of S.
11, who has seen the current crisis close up in his own State of
Nevada. And finally, I want to thank Senator Dianne Feinstein of
California. Her State has been the model of medical liability reform
and has demonstrated that commonsense reforms work. I look forward to
continuing to work with Senator Feinstein on this issue. We share the
goal of putting patients first.
The Patients First Act will protect access to care and ensure that
those who are negligently injured are fairly compensated. Again, I
encourage my colleagues to move this legislation forward. We cannot
afford further delay.
I yield the remainder of our time.
Cloture Motion
The PRESIDING OFFICER. All time having expired, under the previous
order, the clerk will report the motion to invoke cloture.
The bill clerk read as follows:
Cloture Motion
We the undersigned Senators, in accordance with the
provisions of rule XXII of the Standing Rules of the Senate,
do hereby move to bring to a close debate on the motion to
proceed to the consideration of Calendar No. 186, S. 11, the
Patients First Act of 2003.
Bill Frist, Mitch McConnell, John Ensign, Craig Thomas,
Rick Santorum, Larry E. Craig, George V. Voinovich,
John Cornyn, Trent Lott, Ted Stevens, Michael B. Enzi,
James Inhofe, Chuck Hagel, Jon Kyl, Judd Gregg, Pat
Roberts, John E. Sununu.
The PRESIDING OFFICER. By unanimous consent, the mandatory quorum
call has been waived.
The question is, Is it the sense of the Senate that debate on the
motion to proceed to S. 11, the Patients First Act, shall be brought to
a close?
The yeas and nays are ordered under the rule. The clerk will call the
roll.
The legislative clerk called the roll.
Mr. REID. I announce that the Senator from Florida (Mr. Graham), the
Senator from Massachusetts (Mr. Kerry), and the Senator from Georgia
(Mr. Miller) are necessarily absent.
I further announce that, if present and voting, the Senator from
Florida (Mr. Graham) and the Senator from Massachusetts (Mr. Kerry)
would each vote ``nay.''
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The yeas and nays resulted--yeas 49, nays 48, as follows:
[Rollcall Vote No. 264 Leg.]
YEAS--49
Alexander
Allard
Allen
Bennett
Bond
Brownback
Bunning
Burns
Campbell
Chafee
Chambliss
Cochran
Coleman
Collins
Cornyn
Craig
Crapo
DeWine
Dole
Domenici
Ensign
Enzi
Fitzgerald
Frist
Grassley
Gregg
Hagel
Hatch
Hutchison
Inhofe
Kyl
Lott
Lugar
McCain
McConnell
Murkowski
Nickles
Roberts
Santorum
Sessions
Smith
Snowe
Specter
Stevens
Sununu
Talent
Thomas
Voinovich
Warner
NAYS--48
Akaka
Baucus
Bayh
Biden
Bingaman
Boxer
Breaux
Byrd
Cantwell
Carper
Clinton
Conrad
Corzine
Daschle
Dayton
Dodd
Dorgan
Durbin
Edwards
Feingold
Feinstein
Graham (SC)
Harkin
Hollings
Inouye
Jeffords
Johnson
Kennedy
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
Mikulski
Murray
Nelson (FL)
Nelson (NE)
Pryor
Reed
Reid
Rockefeller
Sarbanes
Schumer
Shelby
Stabenow
Wyden
NOT VOTING--3
Graham (FL)
Kerry
Miller
The PRESIDING OFFICER. On this vote, the yeas are 49, the nays are
48. Three-fifths of the Senators duly chosen and sworn not having voted
in the affirmative, the motion is rejected.
____________________