[Congressional Record Volume 150, Number 45 (Friday, April 2, 2004)]
[Extensions of Remarks]
[Page E513]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 MEDICAL MALPRACTICE RELIEF ACT OF 2004

                                 ______
                                 

                            HON. MAX SANDLIN

                                of texas

                    in the house of representatives

                        Thursday, April 1, 2004

  Mr. SANDLIN. Mr. Speaker, the root causes of the crisis in our 
Nation's medical malpractice insurance system are numerous and complex. 
Unfortunately, while Congress debates the various approaches to reform, 
doctors, hospitals, and other healthcare providers face the harsh 
reality of skyrocketing premiums today.
  Ensuring that Americans continue to have access to doctors of all 
specialties while Congress finds a comprehensive solution to this 
crisis is crucial. A temporary, but immediate malpractice premium tax 
credit would provide much-needed relief to healthcare providers who 
want to continue offering care, but are struggling to pay their 
malpractice premiums.
  Therefore, Mr. Speaker, I am pleased to join today with 30 of my 
colleagues in introducing the Medical Malpractice Relief Act of 2004, 
which would allow doctors, hospitals and nursing homes to claim a tax 
credit for a percentage of the malpractice premiums they are paying and 
will pay during tax years 2004 and 2005.
  Doctors who specialize in an area with increased risk of 
complications would be eligible for a tax credit equivalent to 20 
percent of their total malpractice premium. The credit could be taken 
for premiums up to twice the average for a similarly situated doctor, 
i.e. same specialty and geographic area.
  High-risk doctors include those in all surgical specialties and 
subspecialties, emergency medicine, obstetrics or anesthesiology; or 
who do interventional work that is reflected in their malpractice 
premiums.
  Doctors who practice in lower risk specialties, such as general 
medicine, allergy, dermatology and pathology would be eligible for a 
tax credit equivalent to 10 percent of their total malpractice premium. 
The credit could be taken for premiums up to twice the average for a 
similarly situated doctor, i.e. same specialty and geographic area.
  For-profit hospitals and nursing homes would be eligible for a tax 
credit equivalent to 15 percent of their total malpractice premium. The 
credit could be taken for premiums up to twice the average for a 
similarly situated hospital.
  As many American hospitals and nursing homes are nonprofit 
institutions that do not pay taxes, this legislation would establish a 
2-year grant program in the Health Resources Services Administration at 
the Department of Health and Human Services.
  Nonprofit hospitals would be eligible for grants up to 15 percent of 
their malpractice premiums. The maximum allowable grant would be for 
premiums up to twice the average malpractice premium among similarly 
situated hospitals.
  Mr. Speaker, medical providers across the country are facing a 
crisis, and they need our help now. Accordingly, I urge my colleagues 
in the People's House to act now to provide physicians, hospitals, and 
nursing homes the relief they need, so that they can turn their full 
attention to their genuine calling--caring for our Nation's health. I 
hope the House will take up this carefully targeted piece of 
legislation soon and provide our Nation's health care providers the 
relief they need.

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