[Congressional Record Volume 150, Number 48 (Wednesday, April 7, 2004)]
[Senate]
[Pages S3880-S3894]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ORDER OF PROCEDURE
The PRESIDING OFFICER. The Senator from Illinois.
Mr. DURBIN. Mr. President, I ask unanimous consent that the 10
minutes already allocated to me be increased to 20 minutes and include
the time previously allocated to Senator Dayton of Minnesota.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. DURBIN. Mr. President, I thank the Senator from Minnesota for
yielding me the 10 minutes so I might speak to this important issue
this morning. I thank the Senator from Nevada for illustrating to us a
serious challenge that faces America. There is no doubt in my mind, nor
in the minds of those who studied this issue nationwide, that we need
to do something as a nation to deal with medical malpractice liability.
It is clear that in many parts of our country, in many parts of my
State, the cost of medical malpractice insurance has gone up
dramatically, to the point that some doctors are moving to other States
and some are retiring. That is a reality. It is a reality in Illinois.
It is a reality in other States. I believe we need to do what is
necessary on a bipartisan basis to grapple with this issue.
Although it will be the first time in history the Federal Government
would take on the question of civil procedure and medical malpractice
cases in States, frankly, it may be the only way to approach it. So I
agree with my colleagues on the other side of the aisle that inaction
on our part will only make this problem worse. We need to move forward.
But I come today to tell you the bill before us, S. 2207, is not the
right approach.
I encourage my colleagues on both sides of the aisle to look at this
bill carefully. I hope they will view, as I do, this bill as an honest
attempt to identify a problem but a very inadequate attempt to solve
it.
Let me say at the outset that a lot has been said about emergency
rooms, which are covered by this bill. Some has been said about OB/GYNs
delivering babies, and that is covered by this bill. But the sponsors
of this bill have not mentioned the fact that it also exempts from full
liability drug companies, medical product manufacturers, insurance
companies, those who make vaccines that cause problems for children.
They are also included in this bill.
So much has been argued about the doctors in the emergency rooms, but
the full scope of the bill has not been described, at least as long as
I have been on the floor.
Let me tell you what I think is wrong with this bill. Here is what
the bill says: The bill says in cities and communities across America
where we rely on a jury of your neighbors and friends to come together
and decide what is fair and what is just, when it comes to those
lawsuits involving injuries, coming out of, for example, an emergency
room treatment, no longer will a local jury decide. The case will be
decided on the floor of the Senate. One hundred Senators will decide
today with this bill that regardless of what happens to you or your
child when you go to an emergency room for treatment, regardless of the
possibility that you brought your child in as an innocent victim
seeking medical care at an emergency room, and that child, the love of
your life, became the victim of medical malpractice, regardless of the
circumstances, we will decide on the floor of the Senate, if that child
is facing a lifetime of disability, a lifetime of disfigurement, a
lifetime of pain and suffering, we, the jury of the Senate, will decide
it will never be worth more than $250,000 for the pain and suffering,
for the disfigurement, for the incapacity they will face. That is what
the bill says.
When you look at it you think, why? Why would we decide that
regardless of the lawsuit, someone could never receive more than
$250,000 for pain and suffering, for noneconomic losses? The argument
is, unless we put a cap on the possible recovery in a lawsuit,
malpractice premiums will continue to rise and doctors will not be able
to afford them. That is the premise. That is the argument of this bill.
So the first thing I would like to do is question that premise. Let's
look at the facts.
Here we have OB/GYN insurance premiums in States with caps, with
limitations on the amount a jury can award, and without caps. In
California, with caps of $250,000, called for in this bill, we see a
54-percent increase in the year 2003 in medical malpractice premiums;
Oregon, with no caps, 0 percent increase; California, a 15-percent
increase versus the State of Washington, 0 percent; Colorado, a 29-
percent increase where they have caps and limitations on jury verdicts,
and in Georgia with no caps, a 10-percent increase; New Mexico, with
caps on how much the jury can award, a 52-percent increase in
malpractice premiums; Arizona, right next door with no caps, no
limitations, only a 14-percent increase.
So the argument that caps will bring down premiums is illustrated
here to just be wrong. The premise is wrong. The argument is wrong.
Take a look at the premiums and what has happened in States without
caps between 1991 and 2002 and those with limitations on jury verdicts.
Arizona in this period of time of 10 or 11 years, 3-percent increase;
New York,
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6 percent; Georgia, 8 percent; Washington, 27 percent. These are States
without caps. Then take a look at the States with caps, with
limitations on jury awards, 50-percent increase in California; 60
percent in Kansas; 82 percent in Utah; 84 percent in Louisiana. The
argument is made--and I heard it on the floor this morning--that it is
because so much is being paid out in terms of verdicts, and that is why
premiums have gone up.
There is little or no correlation between the amounts that are paid
out in verdicts and settlements and what happens to premiums. One would
think there would be a direct correlation, but look at this situation.
The State of Hawaii, a 527-percent increase in 10 years in the amount
paid out in medical malpractice suits, a 10-percent increase in
premiums; Iowa, a 87-percent increase in payouts, a 12-percent decline
in the premiums charged. The case is illustrated and goes on.
The point I wish to make is if the premise of this law is
establishing caps will bring down malpractice premiums these two things
we can be sure of: There is no evidence to support it in many of the
States with the strictest caps and, secondly, if there is any benefit
to be realized by establishing caps it will be years before it is
realized. That just reflects the fact that lawsuits filed for
malpractice are filed years after the event occurred. Frankly, if there
is any benefit to be realized, doctors and hospitals today will not see
it for a long time.
The second thing that I think cries out to be said when it comes to
capping what a jury can award in a case involving medical malpractice
is the fundamental injustice involved in this. Here we have to go
beyond the theoretical, beyond the statistical, to the real world of
what happens when people show up at emergency rooms for treatment.
This is a beautiful young girl, Shay Maurin, from Hartford, WI. She
was the victim of medical malpractice. On March 5, 1997, her mother
took her 5-year-old daughter Shay to a local clinic because she thought
something was wrong. She was not sure what it was. The physician's
assistants at the clinic thought Shay might have diabetes but did not
perform any tests.
The mother then took her daughter to the emergency room, where she
told the emergency room doctor that the clinic thought this little girl
might have diabetes and maybe that was why she was sick. She was 5
years old.
Although her daughter was exhibiting signs and symptoms of diabetes,
the emergency room did not administer the standard finger-stick test,
the basic test that people suffering from diabetes go through regularly
to monitor their blood insulin. Instead, this little girl and her
mother were sent home from the emergency room.
This little girl died of diabetic ketoacidosis the following
afternoon. That occurs when a person who has diabetes is not treated
with insulin. The body's blood sugar builds up to extremely high
levels. The body cannot metabolize what the person eats. The body
becomes severely dehydrated. Acid buildup occurs, leading to swelling
of the brain and death.
The emergency room which failed to administer the most basic test,
after being told by the mother that they suspected she was suffering
from diabetes, was found 88-percent responsible for her death and the
clinic 12-percent responsible. If we pass this bill, we have decided
that the jury of the Senate would say to this little girl's family: The
maximum you can recover for the losses and pain and suffering for this
little girl is $250,000.
Let me tell my colleagues a story of another young girl. This
beautiful little girl is Lauren Meza. On January 2, 2000, Jennifer Meza
took her 2\1/2\-year-old daughter Lauren to the emergency room at the
recommendation of her pediatrician.
The baby's symptoms indicated that she may have had pneumonia. The
child's father was being hospitalized for pneumonia at the time she
developed the symptoms. The emergency room doctor refused to perform
any tests, insisting to Ms. Meza that her daughter would be fine and
she should go back home.
Two days later, Ms. Meza brought Lauren back to the pediatrician, who
was alarmed at her deteriorating condition. The doctor determined she
needed immediate emergency care and she was airlifted to another
hospital where she was treated for a condition that left her body
unable to expel toxic agents and waste products, forcing them into her
bloodstream. As a result of the emergency room doctor's denial of care,
she is facing dialysis and a kidney transplant before she turns 10
years of age.
What this bill says is that this little girl, Lauren Maza, facing a
lifetime of dialysis and ultimately a kidney transplant, would never be
allowed more than $250,000 for any pain and suffering which she
sustained because of the clear negligence of the emergency room doctor.
Let me tell my colleagues about a case that involves a person who is
somewhat older but illustrates this point again. On January 22, 2000,
Barbara Jackson complained of chest pains. Her coworkers thought she
might have had a heart attack. They called an ambulance. She is from
Melrose Park, IL. The ambulance driver suspected a heart attack, but
the emergency room personnel waited nearly an hour to do an EKG. More
egregiously, they gave her drugs that actually precipitated the heart
attack. The attack was so serious this woman lapsed into a coma. She is
now in a vegetative state living with her sister who cares for her
every single minute of every day.
Her family believes she is capable of feeling pain. Proper medical
treatment, nursing treatment, and rehabilitation will cost more than
$20 million if she lives to full life expectancy, which her doctors
expect.
A mistake made in an emergency room, a woman in a vegetative state
for the rest of her time on Earth, and the jury of the U.S. Senate has
reached a verdict. For pain and suffering, in Barbara Jackson's case,
no more than $250,000.
Not only do caps not work to bring down malpractice premiums in case
after case, they are fundamentally unjust and unfair. There has to be a
better way. We have to deal with a standard that will bring down
malpractice premiums but not at the cost of fairness and justice.
It is a simple fact of life, and one which I wish were not the case,
that more and more medical errors are being committed. We cannot expect
doctors and hospitals to be perfect. They are human. There are times,
unfortunately, when they are negligent, when they do not meet the
standard of care which we can expect of every physician and
every medical provider. In those instances, they should be held
accountable, as all of us are held accountable for our wrongdoing.
That accountability means they should be held responsible for the
real problems they create, the damages that are created by their
misconduct.
We have had so many surveys of hospitals. A study recently found that
injuries in U.S. hospitals in the year 2000 resulted in 32,600 deaths.
Some have estimated some 98,000 people die each year from malpractice.
Only a small percentage of these cases ever end up in a lawsuit, ever
end up in a trial.
We need to address this issue at three levels. First, let us make the
practice of medicine safer, and we can do that. Secondly, let us deal
with tort reform. I have told my friends who are trial lawyers--and I
practiced law myself before I came to the Senate--we have to step up to
and accept responsibility for change that will reduce the number of
frivolous lawsuits and give those truly deserving their day in court.
Third, insurance companies have to be held accountable for their
misconduct. If they are gouging, if they are overpricing, then we, as a
government, need to stand up to that industry as well.
Three parts: Reducing medical errors, tort reform, and insurance
reform are the way to approach it. I say to my colleagues on the other
side of the aisle, join me in a bipartisan effort now to go beyond this
issue of caps, which will not solve the problem, caps that are
fundamentally unfair, and let us talk about real solutions.
Think about this bill that is before us for a moment. This bill says
that if one is brought to an emergency room because they were in
serious trouble and medical conditions are such that warrant it, they
will be limited in how much money one can recover if they are an
innocent victim of medical malpractice. However, if one is admitted to
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the hospital, through the front door and not the emergency room, these
limitations would not apply.
Think of it as well from the OB/GYN point of view. It is true that
OB/GYN premiums have gone up astronomically in some areas, and we have
to zero in on that, but we are saying someone who is a victim of
malpractice by an obstetrician gynecologist will have a limitation on
how much they can recover while someone else in the same hospital being
operated on by a doctor with a different specialty will not be subject
to these limitations. That is just fundamentally unfair.
I think what we need to do is open the door for conversation, but
first we need to close the door on this concept. This is not the right
approach.
I have met over the last several months with scores of doctors and
hospital administrators in my State, and I say to them in all
seriousness and sincerity that we have a problem in Illinois, as well
as a national problem.
I have invited Members to come to the table after this legislation is
defeated today and sit down in an honest, bipartisan fashion to look
for solutions that will solve this problem. I believe we can find it.
The Senator from South Carolina who is presiding has joined me in
bipartisan legislation that really tries to approach this from a new
innovative, creative, and positive point of view that does work. I
think we can achieve that goal. But to achieve it we need to bring the
medical professionals into the room along with those who are
representing the victims of medical malpractice. Once that conversation
takes place, if it takes place in good faith, I am confident we can
come up with solutions.
I urge my colleagues to vote against the motion for cloture on
proceeding to this bill. It has not been subjected to hearings. It
includes things which were not talked about on the floor--protection
for insurance companies, protection for pharmaceutical companies and
medical device manufacturers. Let us get down to the business of trying
to solve this problem and doing it in a fashion that is reasonable and
effective and bipartisan.
I reserve the remainder of my time.
The PRESIDING OFFICER. The Senator from Texas.
Mr. CORNYN. Mr. President, I think we are actually making progress. I
am delighted to hear the Senator from Illinois agree with what it
sounded like the minority leader stated earlier, that they have some
problems with this bill as written, and they acknowledge the problem of
medical liability crisis exists and suggest we ought to try to find
some way to address that crisis which they concede is very real.
Senator Durbin said it is not the right approach. My question would
be, Well, what is the right approach? Senator Daschle said there is no
reason to differentiate between those who walk in the front door of a
hospital and those who get emergency care. I will concede the good
faith of that question. The problem is we offered that bill earlier and
were unsuccessful in getting cloture so we could actually get to the
merits of the bill and debate it. Of course, not until we get to that
60-vote hurdle where we can actually move the bill on to the floor can
the bill be amended. Indeed, that is how the Senate does its work. But
I wonder whether it is the intention of our friends on the other side
of the aisle to have a good-faith debate about how to solve this
problem.
For example, rather than take what I consider to be the constructive
approach the Senator from Illinois and the Senate minority leader have
taken to criticize the content of the bill but to acknowledge we have a
problem so perhaps we can then get to a solution of that problem, the
the ranking member of the Senate Judiciary Committee called it a
partisan approach and then criticized the Senate leadership. He said,
In my 29 years here in the Senate I have never seen so little
accomplished.
I think the reason why we are not accomplishing any reform or any
real solution to what is a very real problem is because our colleagues
on the other side of the aisle simply won't let us call the bill up,
have a debate, consider amendments, and try to solve what is a very
real crisis in this country.
Even though we are calling this a medical liability reform bill, this
is not something we are doing out of the goodness of our hearts for the
medical profession. While I respect members of the medical profession
who dedicate their lives to curing illness and addressing medical
needs, as well as health care providers who run hospitals and a whole
host of other allied health care facilities, that is not what drives me
to see the need for this bill. The reason I think this bill needs to be
passed, or some version of it after amendment if the Senate reaches
consensus on a solution to the problem, is because I know everyone
within the sound of my voice and literally everyone across the country
who is alive today will at some point in their lives be a patient. They
will need access to good quality health care.
What is happening today in this country because of this medical
liability crisis is denying patients--that is the American people--
access to health care they need in order to lead a good quality of life
and in order to enjoy life for themselves and their children and their
other loved ones.
I want to comment briefly on a suggestion I have heard from our
colleagues on the other side of the aisle. They said that with this
particular solution--that is a cap of $250,000 on non-economic
damages--people walk away with nothing when they go to court. The truth
is, in California, which has a medical liability reform law very
similar to what we are proposing here today, economic damages,
including medical expenses, are compensated completely. Indeed, in
December of 2002, in Alameda County, there was an $84 million award to
a 5-year-old boy who has cerebral palsy and is a quadriplegic because
of delayed treatment of jaundice after birth. That would only be
possible because what is actually being compensated there is the very
real economic loss suffered as a result of that horrendous injury,
something we all regret.
The suggestion we are going to turn people out of court with nothing
to show for it and we are not going to compensate people for their
injuries received in the medical context caused by the fault of another
is not true. I wonder how anyone can stand up and suggest we are
somehow trying to deny people a remedy. That is certainly not the case.
We know this kind of law will have a positive impact. Even in the
State of Texas, which I represent, where we passed not a $250,000 cap
but indeed a higher cap on non-economic damages last September, we have
seen one medical liability insurance company reduce its rates by 12
percent across the board, sort of a start. Another medical liability
insurance carrier has cancelled an anticipated 19-percent increase.
Obviously, we will see how this all plays out, but we already know it
has a very real and positive impact as demonstrated by the evidence.
I see the Senator from Virginia and I want to make sure he has all
the time he needs to speak. But I want to also comment on the effect of
high medical liability insurance rates on the cost of health care and
on the pressure being put on employers and others who provide health
insurance to their employees to drop their employees from any sort of
health coverage, exacerbating the crisis we have in this country of too
many people who do not have access to health insurance and the fact we
have many emergency rooms put on divert status with patients being
redirected elsewhere in true emergencies because people who do not have
health insurance have nowhere else to turn if they don't have money.
They know they can be treated in an emergency room. They know they
can't be turned away. But the fact is about 80 percent of the people
who go to emergency rooms are being treated for medical conditions that
could be treated in a clinic or a doctor's office much more cheaply,
more humanely, and in a way that would help us address this crisis in
access to good quality health care.
Finally, I know we have heard a lot of discussion on the floor of the
Senate, as we should, about the concern of every person in this country
who wants to work to find a good job so they can provide for themselves
and their family. But the cost of health care in this country is
killing our recovery. It is doing so from the standpoint of putting
increased financial burdens on employers who want to provide health
insurance to their employees but simply are
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not able to add new positions in their company because they know that
in addition to salary they are going to have to pay benefits, including
health care costs in many instances, and they are simply priced out of
the market.
If our colleagues on the floor of the Senate want to do something
about improving access to good quality health care, if they want to do
something about the fact many people don't have health insurance and
need health care coverage, if they want to do something about America's
competitiveness in this global economy, and make sure we keep more jobs
in this country rather than see them go to China, India, or anywhere
else, they should vote to let this bill come forward and have a debate
about what this bill ought to look like to address the medical
liability crisis that even the Senator from Illinois and the minority
leader admit we have in this country today.
I implore Members to reconsider their obstruction. By obstructing
progress on this vote we are not solving any problems. People are maybe
making political points, but it is hard to see what kind of political
point you make by obstructing good, commonsense legislation like this.
I implore them to reconsider their obstruction and ask that they vote
for cloture so we can move on and begin to solve this very real problem
on behalf of the American people.
I yield the floor.
The PRESIDING OFFICER (Ms. Murkowski). The Senator from Virginia.
Mr. WARNER. Madam President, I commend our distinguished colleague
from Texas. He spoke from the heart on this measure. It is a matter of
utmost seriousness.
I ask unanimous consent I be made a cosponsor on this pending
legislation.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. WARNER. Madam President, I rise again to join the Senator from
Texas and many other Members on this side of the aisle in strong
support of health care liability reform.
My father was a medical doctor. He was an obstetrician. I am grateful
to so many doctors from whom I am hearing all across America about this
crisis. My father had no great interest in politics. He voted
regularly; I remember that. I think most physicians find little time to
involve themselves in politics. But this is a political question. We
have to look at it fair and square and call it as it is.
America is crying out from every corner of our land, from all 50
States, for relief from the oppressive number of lawsuits brought
against the medical profession, a profession that is not interested in
politics. They are only interested in caring for the citizens of this
Nation.
I am proud to stand with the distinguished majority leader, Mr.
Frist, the distinguished Senator from New Hampshire, the Senator from
Texas, the Senator from Nevada, and others, time and time again in this
Senate to urge this body to rise above politics and extend a helping
hand to the medical profession.
Early this year, I was pleased to offer my own amendment on health
care liability reform. My amendment was called the Protect the Practice
of Medicine Act, amendment No. 2624, but procedural impediments--I have
to recognize we follow the rules around here--prevented the Senate from
addressing that bill. My amendment was supported by the American
Medical Association, the American College of Surgeons, and a number of
other associations representing the men and women in our medical
profession. Unfortunately, a procedural move by the opponents precluded
the Senate from voting on this amendment.
I stand today in hopes there will be a vote on this measure. This
measure is very much like the measure I put forth; indeed, the goals
are common.
Opponents of health care liability reform have been using procedural
tactics in the Senate to prevent an up-and-down vote on these issues
for many years. The consequences are grave. Men and women continue to
leave the practice of medicine due to the high cost of malpractice
insurance, and patients continue to lose access to medical health care.
We have all heard the real stories from doctors about the rapidly
increasing costs of medical malpractice insurance. In some States,
malpractice insurance premiums have increased as much as 75 percent in
1 single year.
As have others in this body, I have received numerous letters from
medical professionals from the Commonwealth of Virginia and across the
Nation that share with me the very real difficulties they encounter
with malpractice insurance and the consequences of this problem.
Let me read one of those letters sent to me by a doctor in Virginia.
The doctor writes:
I am writing you to elicit your support and advice for the
acute malpractice crisis going on in Virginia. . . . I am a
48-year-old single parent of a 14 and 17 year old. After all
the time and money spent training to practice OB/GYN--
That is obstetrics, my father's profession, or specialty--
I find myself on the verge of almost certain unemployment
and unemployability because of the malpractice crisis. I have
been employed by a small OB/GYN group of doctors for the last
7 years. . . . Our malpractice premiums were increased by 60
percent in May of 2003. . . . The prediction from our
malpractice insurance carrier is that our rates will probably
double at our next renewal date in May 2004. The reality is
we will not be able to keep the practice open and cover the
malpractice insurance along with other expenses of medical
practice.
Another letter writer from the Midwest:
Due to the rapid increase of premiums, the crisis is one of
affordability and availability of insurance for physicians. .
. . The result of this is premature retirement, physicians
moving to more favorable areas--
Moving from one State to another State--
discontinuing high-risk procedures or finding other ways to
make a living out of medicine. All of this, of course,
affects the patients, who have increasing difficulty finding
medical care.
Letter after letter are stories of the effect this crisis is having
across America.
Time magazine and Newsweek have thoroughly detailed the crisis
doctors are facing. I have the two recent issues entitled ``Lawsuit
Hell,'' and the second, ``The Doctor is Out.''
It is being discussed all across America. That is why it is so
imperative this institution, the Senate, be given the opportunity to
vote on this issue.
In June of 2003, Time magazine had a cover story on the effects of
rising malpractice insurance rates. The story entitled ``The Doctor is
Out'' discusses several doctors all across America who have had to
either stop practicing medicine or had to take other action due to
increased insurance premiums. One example cited in the Times article is
the case of Dr. Mary-Emma Beres. Time reports:
Dr. Mary-Emma Beres, a family practitioner in Sparta, N.C.,
has always loved delivering babies. But last year, Dr. Beres,
35, concluded that she couldn't afford the tripling of her
$17,000 malpractice premium and had to stop. With just one
obstetrician left in town for high-risk cases, some women who
need C-sections now must take a 40-minute ambulance ride.
Dr. Beres' case makes clear that not only doctors are being affected
by the medical malpractice crisis but patients, as well. With increased
frequency due to rising malpractice rates, more and more patients are
not able to find the medical specialists they need in their community
or in a neighboring community and have to travel long distances or even
go out of State, to other States, where there has been closer control
on the types of lawsuits that generate these exorbitant fees.
Newsweek magazine had a cover story on the medical liability crisis.
That cover story was entitled ``Lawsuit Hell.'' I was struck by the
feature in this magazine about a doctor from Ohio who saw his
malpractice premiums rise in 1 year from $12,000 to $57,000. As a
result, this doctor ``decided to lower his bill by cutting out higher
risk procedures like vasectomies, setting broken bones, and delivering
babies''--even though obstetrics was his favorite part of practice. Now
he glances wistfully at the cluster of baby photos still tacked to a
wall in his office. `I miss that terribly,' he says.''
While these stories are compelling on their own, the consequence of
this malpractice crisis can even be greater.
On February 11, 2003, a woman by the name of Ms. Leanne Dyess of
Gulfport, MS, shared with both the HELP Committee--of which the
distinguished chairman is present managing this bill--and the Judiciary
Committee her very personal story about how this crisis has affected
her.
She told us how, on July 5, 2002, her husband Tony was involved in a
single-
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car accident. He was rushed to the hospital in Gulfport where he had
head injuries and received medical attention. Tony could not be treated
at the Gulfport hospital because they did not have the specialist
necessary to take care of him. After a 6-hour wait, he was airlifted to
the University Medical Center. Today, Tony is permanently brain
damaged.
According to Mrs. Dyess, no specialist was on staff that night in
Gulfport because rising medical liability costs had forced almost all
of the brain specialists in that community to abandon their practices.
As a result, Tony had to wait 6 hours before the only specialist left
in Gulfport could treat Tony to reduce the swelling in his brain.
As you can see, without a doubt, the astronomical increases in
medical malpractice insurance premiums are having wide-ranging effects.
It is a national problem, and it is time for a national solution.
President Bush has indicated that the medical liability system in
America is largely responsible for the rising costs of malpractice
insurance. The American Medical Association and the American College of
Surgeons agree with him, as does almost every doctor in Virginia with
whom I have discussed the issue.
The President of the AMA, Dr. John Nelson, has publicly stated:
We cannot afford the luxury of waiting until the liability
crisis gets worse to take action. Too many patients will be
hurt.
The American College of Surgeons concurs by stating:
More and more Americans aren't getting the care they need
when they need it. . . . The ``disappearing doctor''
phenomenon is getting progressively and rapidly worse. It is
an increasingly serious threat to everyone's ability to get
the care they need.
Let me state unequivocally that I agree with our President, with the
AMA, with the American College of Surgeons, and with the vast majority
of doctors all across Virginia.
While the amendment I offered earlier this year is somewhat different
from the measure before us today--the goals are the same: to ensure
that patients have access to quality health care and to protect the
practice of medicine from frivolous lawsuits and runaway jury verdicts.
The legislation before us today is a commonsense solution to a
serious problem, and it is time for us to vote up or down on this
legislation.
Over the past several weeks, I have listened closely to my colleagues
speak on the floor of the U.S. Senate about the importance of having an
up-or-down vote on particular legislation. And, in response, I ask, how
is this bill any different?
I, for one, intend to vote to end the filibuster on health care
liability reform legislation. The consequences of continued dilatory
tactics are too profound to patients and doctors in this country. I
urge my colleagues to do the same.
Madam President, I hope this institution can live up to its
responsibility as duly elected representatives of the people of this
country and respond to the cries of the people of this country to
address this situation.
I yield the floor.
The PRESIDING OFFICER. The Senator from New Hampshire.
Mr. GREGG. Madam President, I congratulate the senior Senator from
Virginia for his excellent statement, especially for reflecting on some
of the specific personal events which this bill tries to address:
People who have been actually impacted by the fact they have not had a
doctor available because the doctor can no longer afford to practice
the type of medicine which this bill addresses, the delivering of
children and emergency room medicine.
Madam President, I ask unanimous consent that Senator Hagel be added
as a cosponsor of S. 2207.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. GREGG. Madam President, I wish to, once again, recite what this
bill is about because there has been some diversion, I am afraid,
coming from the other side in the representations that were made.
Basically, what we are dealing with is a bill that is going to try to
make medicine more readily available to women who are having children.
In rural parts of this country today, for example, in northern New
Hampshire, if a woman is having a child, she has to drive a long way to
see a doctor because there is nobody practicing obstetrics in northern
New Hampshire. The baby doctors in that part of the State have found
their liability premiums so exceed what they can earn that they can no
longer afford to practice medicine. So women are put at risk because
they have to get in their car and drive a long way on snowy roads, and
it is very difficult, especially as they move into the later terms of
their pregnancy.
Secondly, this deals with people who walk into an emergency room,
have an emergency and need to receive care. As was pointed out by the
Senator from Tennessee, the majority leader, who is a doctor, there is
a window of opportunity to care for people who have experienced trauma.
If there isn't a doctor in that emergency room to take care of that
individual, then you have a serious problem. This bill tries to address
that by making affordable the practice of medicine in an emergency
room.
Today, we have a problem. Doctors who practice in emergency rooms do
not make a lot of money. They are not making enough money to cover the
premiums for the liability insurance they have because of the massive
amounts of lawsuits which are filed.
This bill will redress that issue. It will still give recovery to
people. It will allow them to recover all the medical costs they have.
It will allow them to recover all their compensation costs, and it will
allow them to recover something for what is known as pain and
suffering. But it will also allow doctors to practice their disciplines
because it will make it possible for baby doctors and emergency room
doctors to be able to afford the cost of the premium of their liability
insurance--something many cannot do today, so they are getting out of
the practice. It will, therefore, give women better care and people who
experience trauma better care in this country.
Madam President, it is my understanding, at this time, the Senator
from West Virginia is to be recognized. Is that correct?
The PRESIDING OFFICER. The Senator has 40 minutes under his control.
The Senator from West Virginia.
Mr. BYRD. I thank the Chair.
Iraq
Madam President, I have watched with heavy heart and mounting dread
as the ever precarious battle to bring security to postwar Iraq has
taken a desperate turn for the worse in recent days and hours. Along
with so many Americans, I have been shaken by the hellish carnage in
Fallujah and the violent uprisings in Baghdad and elsewhere. The
pictures have been the stuff of nightmares, with bodies charred beyond
recognition and dragged through the streets of cheering citizens. And
in the face of such daunting images and ominous developments, I have
wondered anew at President Bush's stubborn refusal to admit mistakes or
express any misgivings over America's unwarranted intervention in Iraq.
During the past weekend, the death toll among America's military
personnel in Iraq topped 600--including as many as 20 American soldiers
killed in one 3-day period of fierce fighting. Think of it. Many of the
dead, most, perhaps, were mere youngsters--mere youngsters--just
starting out on the great adventure of life. But before they could
realize their dreams, they were called into battle by their Commander
in Chief, a battle that we now know was predicated on faulty
intelligence and wildly exaggerated claims.
As I watch events unfold in Iraq, I cannot help but be reminded of
another battle, at another place and another time, that hurtled more
than 600 soldiers into the maws of death because of a foolish decision
on the part of their commander. The occasion was the Battle of
Balaclava on October 25, 1864, during the Crimean war, a battle that
was immortalized by Alfred Lord Tennyson in his poem ``The Charge of
the Light Brigade.''
``Forward, the Light Brigade!''
Was there a man dismay'd?
Not tho' the soldier knew
Someone had blunder'd:
Their's not to make reply,
Their's not to reason why,
Their's but to do and die:
Into the valley of Death
Rode the six hundred.
Tennyson got it right--someone had blundered. It is time we faced up
to the
[[Page S3885]]
fact this President and his administration blundered as well when they
took the Nation into war with Iraq without compelling reason, without
broad international or even regional support, and without a plan for
dealing with enormous postwar security and reconstruction challenges
posed by Iraq. And it is our soldiers, our men and women, our own 600
and more who are paying the awful price for this administration's
blunder.
In the runup to the war, this President and his advisors assured the
American people we would be greeted as liberators in Iraq. Yes, this
Vice President, Vice President Cheney, assured the American people we
would be greeted as liberators in Iraq. For a brief moment, that
outcome seemed possible. One year ago this week, on April 9, 2003, the
mood in many corners of the Nation was euphoric as Americans witnessed
the fall of Baghdad and the jubilant toppling of a massive statue of
Saddam Hussein. Less than 4 weeks later, President Bush jetted out to
an aircraft carrier parked off the coast of California to cockily
declare to the world the end of major combat operations in Iraq. For
those with tunnel vision, the view from Iraq looked rosy. Then Baghdad
had fallen, Saddam Hussein was on the run, and U.S. military deaths had
been kept to a relatively modest number, a total of 138 from the
beginning of combat operations through May 1, 2003.
But the war in Iraq was not destined to follow the script of some
idealized cowboy movie of President Bush's youth, where the good guys
ride off into a rose-tinted sunset, all strife settled and all
wrongdoing avenged. The war in Iraq is real. And as any soldier can
tell you, reality is messy and bloody and scary.
Nobody rides off into the sunset for fear the setting sun will blind
them to the presence of the enemies around them. So the fighting
continues in Iraq. It is going on right now, right this minute, long
past the end of major combat operations, and the casualties have
continued to mount even now, even this hour, even this minute. As of
today, more than 600 military personnel have been killed in Iraq and
more than 3,000 wounded.
Now after a year of continued strife in Iraq comes word that the
commander of forces in the region is seeking options to increase the
number of U.S. troops on the ground, if necessary. Surely I am not the
only one who hears echoes of Vietnam in this development. I was here in
this Chamber when the word went out in those days to send more, send
more men. We will be out by Christmas, yes.
Surely this administration recognizes that increasing the U.S. troop
presence in Iraq will only suck us deeper and deeper and deeper into
the maelstrom, into the quicksand of violence that has become the
hallmark of that unfortunate, miserable country. Starkly put, at this
juncture, more U.S. forces in Iraq equates more U.S. targets in Iraq.
Again, Tennyson's words bespeak a cautionary tale for the present:
Cannons to the right of them,
Cannons to the left of them,
Cannons in front of them
Volley'd and thunder'd;
Storm'd at with shot and shell,
Boldly they rode and well,
Into the jaws of Death,
Into the mouth of Hell
Rode the six hundred.
Like Tennyson's Light Brigade, American military personnel have
proved their valor, have proved their mettle, have proved their bravery
in Iraq. In the face of a relentless and seemingly ubiquitous
insurgency, they have performed with great courage and great resolve.
They have followed the orders of their Commander in Chief, regardless
of the cost. But surely some must wonder why it is American forces that
are still shouldering the vast majority, the overwhelming majority of
the burden in Iraq, 1 year after the liberation of the country.
Where are the Iraqis? Where are they? What has happened to our much-
vaunted plans to train and equip the Iraqi police and Iraqi military to
relieve the burden on U.S. military personnel? Could it be that our
expectations exceeded our ability to develop these forces? Could it be
that, once again, the United States underestimated the difficulty of
winning the peace in Iraq?
Since this war began, America has poured $121 billion into Iraq for
the military and for reconstruction. But this money cannot buy
security; this money cannot buy peace; and $121 billion later, only
2,324 of the 78,224 Iraqi police are ``fully qualified,'' according to
the Pentagon. Nearly 60,000 of those same police officers have had no
formal training--none. It is no wonder security has proved to be so
elusive. The time has come for a new approach in Iraq.
The harsh reality is this: One year after the fall of Baghdad, the
United States should not be casting about for a formula to bring
additional U.S. troops to Iraq. The United States should instead be
working toward an exit strategy. The fact that the President has
alienated friend and foe alike by his arrogance in ``going it alone''
in Iraq and has made the task of internationalizing postwar Iraq an
enormously difficult burden should not deter our resolve.
Pouring more U.S. troops into Iraq is not the path to extricate
ourselves from that miserable and unfortunate country. We need the
support and endorsement of both the United Nations and Iraq's neighbors
to truly internationalize the Iraq occupation and take U.S. soldiers
out of the crosshairs of angry Iraqis.
From the flood of disturbing dispatches from Iraq, it is clear that
many Iraqis, both Sunni and Shiite, are seething under the yoke of the
American occupation. The recent violent uprising by followers of a
radical Shiite cleric is by far the most troubling development in
months and could signal America's worst nightmare--a civil war in Iraq
that pits moderate Shiites against radical Shiites. Layered over the
persistent insurgency being waged by disgruntled Iraqi Sunnis and
radical Islamic operatives, a Shiite civil war could be the event that
topples Iraq from instability into utter chaos.
As worrisome as these developments are in and of themselves, the fact
that they are occurring as the United States hurtles toward a June 30
deadline to turn Iraq over to an interim Iraqi government--a government
that has yet to be identified, established, or vetted--adds an element
of desperation to the situation.
Where should we look for leadership? To this Congress? To this
Senate? Should we look here?
This Senate, the foundation of the Republic, has been unwilling to
take a hard look at the chaos in Iraq. Senators have once again been
cowed into silence. Where are Senators on this issue? Where are they?
They are of many different opinions, I am sure. Why are they not here
to express them? Senators have once again been cowed into silence and
support, not because the policy is right, but because the blood of our
soldiers and thousands of innocents is on our hands.
Questions that ought to be stated loudly in this Chamber are instead
whispered in the halls. Those few Senators with courage to stand up and
speak out are challenged as unpatriotic and charged with sowing seeds
of terrorism. It has been suggested that any who dare to question the
President are no better than the terrorists themselves. Such are the
suggestions of those who would rather not face the truth.
This Republic was founded in part because of the arrogance of a king
who expected his subjects to do as they were told, without question,
without hesitation. Our forefathers overthrew that tyrant and adopted a
system of government where dissent is not only important, it is also
mandatory. Questioning flawed leadership is a requirement of this
Government. Failing to question, failing to speak out, is failing the
legacy of the Founding Fathers.
When speaking of Iraq, the President maintains that his resolve is
firm, and indeed the stakes for him are enormous. But the stakes are
also enormous for the men and women who are serving in Iraq and who are
waiting and praying for the day they will be able to return home to
their families, their ranks painfully diminished but their mission
fulfilled with honor and dignity.
The President sent these men and women into Iraq, and it is his
responsibility to develop a strategy to extricate them from that
troubled country before their losses become intolerable.
It is staggeringly clear that the administration did not understand
the
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consequences of invading Iraq a year ago, and it is staggeringly clear
that this administration has no effective plan to cope with the
aftermath of the war and the functional collapse of Iraq. It is time--
past time--for the President to remedy that omission and to level with
the American people about the magnitude of mistakes made and lessons
learned. America needs a roadmap out of Iraq, one that is orderly and
astute, else more of our men and women in uniform will follow the fate
of Tennyson's doomed Light Brigade.
Madam President, I yield the floor.
The PRESIDING OFFICER. The Senator from Missouri.
Mr. BOND. Madam President, I came to speak on medical malpractice.
How much time is remaining on this side?
The PRESIDING OFFICER. There are 9 minutes remaining.
Mr. BOND. Madam President, I wish to save 3 minutes, if you will
advise me. I believe another colleague is coming.
I do have to make one or two quick remarks about this subject of
Iraq. When we went into Iraq, 77 Members of this body believed the
intelligence, that there was a deadly force, a radical tyrant there who
needed to be removed.
One may argue about the intelligence. The intelligence was not as
good as it should have been, and that is why we on the Intelligence
Committee have been looking into the evidence. But there is no
question, what David Kay said afterward when he did the work of the
Iraqi Survey Group, Iraq was a far more dangerous place than we even
imagined it.
We heard from soldiers. I talked with soldiers who have been there.
They know what we are doing. They know the atrocities that went on.
They know Iraq was a place of weapons of mass destruction, that
biological and chemical weapons had been manufactured before, with
wide-open opportunities for terrorists in Iraq to get those weapons and
to use them. This was a clear-cut danger, not only to the people of
Iraq who were suffering every day--literally hundreds of thousands
murdered, neighbors murdered--but also a harbor for terrorists in that
country and around the world.
What we did in Iraq was dismember the Saddam Hussein regime and wipe
out the terrorist holding pattern of government, wipe out the
protective elements Afghanistan's Taliban government and Iraq's Saddam
Hussein have given the terrorists.
Yes, there is deadly fighting going on. There are tragedies every
day, and it was laid out by al-Zarqawi, the terrorist leader in
northern Iraq who has been working there for years to attack not only
American soldiers but Iraqi civilians. They are attacking those
civilians, but they are aiming at the American public opinion. They are
aiming at this body. They want to get this body to say we are going to
cut and run so they can have the opportunity to run that country one
more time.
I believe we cannot forsake and disregard the sacrifices made by the
brave men and women who have deposed and captured Saddam Hussein and
opened up the opportunity for a free and vibrant Iraq to flourish in
the Middle East. I hope we will stay the course, and I think my
colleagues will want to talk about it.
I wanted to address today the problem of medical malpractice
insurance rates and how trial lawyers have driven them through the top
of the roof.
Nineteen States are in a full-blown crisis, including my home State
of Missouri. Premium increases in 2002 were 61 percent, on top of
increases in the previous year of 22 percent.
Almost a third of the physicians in Missouri say they are considering
leaving their practice altogether. It is happening in Missouri and
across the country. But this is not only a problem for doctors. They
are well educated. They can move elsewhere and resume their practice,
as difficult and as unfair as that is. The real damage, the real pain,
is being felt by their patients.
The headlines and the horror stories continue to accumulate, and
patients continue to suffer in Missouri and across the country. The
bill before us on which we are going to vote today is a narrow,
targeted, short-term solution to a growing national crisis. This bill
protects patient access to emergency and trauma care services, as well
as access to care for women and babies.
I have come to this floor many times to talk about protecting access
to care for pregnant women. It is a real problem in Missouri. Last
year, Missouri lost a total of 33 obstetricians. Let me give a few
examples of the compromised care in Missouri.
A St. Joseph, MO, practice, the only practice in northwest Missouri
to accept Medicaid, lost one-third of its doctors after the insurance
company would no longer offer insurance to OB/GYNs. St. Joseph now has
only seven OB/GYNs serving its population.
A Missouri doctor who had been in private practice for 3 years
experienced a 400-percent increase in liability premiums for the past 3
years. He got a quote of $108,000 for the current year. The OB/GYN is
considering quitting obstetrics to find more affordable insurance to do
something else.
A gynecological oncologist in Missouri left a group practice,
eliminated a rural outreach clinic because of rising professional
medical liability premiums. Women with gynecological cancers in Ste.
Genevieve, Carbondale, and Chester now have to drive over 100 miles to
see a gynecological oncologist.
On the eastern side of the State in St. Ann, MO, an OB/GYN was forced
to close his practice last year because of medical liability costs that
rose 100 percent. Previously, that practice had delivered about 400
babies a year.
Twelve doctors at the Kansas City Women's Clinic used to serve women
in both Missouri and Kansas, but because of the rising medical
liability insurance rates in Missouri, the clinic could not find a
single company that would offer them a medical malpractice insurance
policy they needed in their office in Missouri.
As a result, at the end of 2002, they closed their doors to Missouri
patients. There were over 6,000 visits a year in their Missouri office.
Now they have to go to Kansas to see an OB/GYN or someplace else.
Access to OB/GYN services is not the only care in jeopardy. This
crisis threatens access to emergency and trauma services as well. To
secure affordable medical liability insurance or to minimize their risk
of lawsuits, many physicians, including neurosurgeons, orthopedic
surgeons, cardiothoracic surgeons, obstetricians, and cardiologists are
forced to stop serving ``on call'' to hospital emergency departments.
Today, in many hospitals there are no neurosurgeons available to
treat patients with major head trauma or no orthopedic surgeon to care
for patients with open fractures.
Patients suffering from head and spinal injuries, broken bones,
gunshot wounds, or other major trauma are airlifted to other medical
facilities. Critical lifesaving facilities are no longer available, and
in many extreme cases trauma centers have been forced to shut down
completely. This is a danger that speaks in volumes.
As my colleagues know, there is a ``golden hour'' that trauma
patients have from the time they are injured to the time they get
trauma care. Closing trauma centers increases the odds that patients
won't get the care they need in that hour.
In Missouri the numbers speak volumes: 20 percent of all the
neurosurgeons in Kansas City, MO have quit or moved out of the area in
the past 12 months; 5 out of 25 neurosurgeons in private practice in
St. Louis quit last year; 21 out of 79 neurosurgeons surveyed in
Missouri are considering leaving the State; 2 trauma centers in Kansas
City have closed in the past 12 months due to lack of physician
coverage.
According to Dr. Steve Reintjes, a practicing physician at the KC
Neurosurgery Group in Kansas City, ``Patients are dying before they get
to us because the trauma center's closed.''
Patients are having a hard time getting the care they need and
communities are losing their trusted doctors. We have a health care
system that is in crisis in Missouri and across the country.
The bill before us today provides a sensible, short-term solution to
a growing national crisis, and I urge my colleagues to support it.
Madam President, I see my colleague from Arizona has joined us. I
yield the remainder of my time to the Senator from Arizona.
The PRESIDING OFFICER. The Senator from Arizona.
[[Page S3887]]
Mr. McCAIN. Madam President, I thank my colleague from Missouri. I
also paid close attention to his statement. I think it is a very
important one.
Madam President, how much time is remaining?
The PRESIDING OFFICER. There are 2 minutes 45 seconds remaining.
Mr. McCAIN. I ask unanimous consent that I be allowed an additional
10 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. McCAIN. I thank the Chair.
Iraq
Mr. McCAIN. Madam President, I take the floor to respond to comments
made by Senator Byrd, but also to general comments that have been made
over the last 48 hours as we all recognize this is a very difficult
time for us in Iraq.
I do not have to review with any of my colleagues the events of the
last few days and the tragedies in the loss of these brave young
Americans who are fighting and sacrificing for someone else's freedom.
I have also heard a number of observers, including some Senators, who
have compared events in Iraq to what we went through in Vietnam. I
happen to know something about Vietnam, and I know we do not face
another Vietnam. I need not go into the long history of our involvement
in that nation, the reasons for our failure, but the realities on the
ground in Iraq are clear.
There is no superpower that is backing these minority of Shias and
Sunnis who are seeking to gain political power through the use of a
gun, and there is no comparison as far as the sanctuary which this
enemy has. We grant them no sanctuary.
Some have stated we are on the defensive. I would argue that, as we
speak, in Fallajuh and other places, our Marines and Army are on the
offensive, dedicated to the proposition that no group, no matter what
their ethnic or religious beliefs are, will take control of Iraq.
Control of Iraq will be the result of a democratic process and a
representative one, part of which is the turning over of power to the
Iraqi people on June 30.
We have had this argument back and forth: Should we turn over power
of the government to the Iraqis on June 30? I say yes, and I say yes
recognizing two realities. One is that it will be a difficult process,
and we have a lot more planning to do between now and June 30 for that
transition to take place. The other reality, as far as the security
situation is concerned, is that America's military will be there in
force for a significant period of time, and the American people need to
be told that.
This is a long, tough, hard struggle. It is hard for countries to
adopt democracies. It is incredibly difficult when they have never
known democracy and freedom in the past. A little later, I want to talk
a little bit more about what happens if we fail, as well as what
happens if we succeed in Iraq.
Again, in Vietnam there was superpower support. There were arms and
political support. We did not have a clear plan for victory, and dare I
mention that in Vietnam many times we had more casualties in a week,
sometimes less than a week, than we have had in a year in Iraq.
To make these comparisons with the Tet offensive or the entire
Vietnam conflict is not only uninformed but I think a bit dangerous
because, of course, the specifics of our involvement in that conflict
fade, as they should, in the memories of the American people.
What is happening in Iraq today is we have a Sunni insurgency that
consists of ex-Baathists and Saddam loyalists. They obviously are the
only people who were better off during Saddam Hussein's regime because
they were the favored minority that were of the same religion as
Saddam. They realize they will never run Iraq again because they are in
the minority. Because they are in the majority, the Shia will probably
dominate that government, but we also have a constitution in Iraq that
guarantees the rights of minorities. We are there and a new government
will be there to guarantee those same rights.
The realities are the Sunni minority will never control Iraq again.
We have a small minority of Shias who are trying to grab some political
power before the July 1 transition. There is very little doubt that
Sadr's followers are in a distinct minority and the majority of Shias
still owe allegiance and have allegiance to the Ayatollah Sistani, who
has argued, perhaps not forcefully enough, that we do not have the kind
of armed conflict that we are seeing today.
Is this a difficult political problem? Yes. Is it the time to panic,
to cut and run? Absolutely not. The vast majority of Iraqi people are
glad we are there and they state unequivocally that they are better off
than they were under the regime of Saddam Hussein. Lest time dim our
memory, let us remember the mass graves that we discovered, the 8- and
9-year-old boys coming out of prison in Baghdad, the despotic,
incredibly cruel practices of his two sons. The people of Iraq and
America and the world are better off with Saddam Hussein gone.
Now, we can argue about intelligence; we can argue about weapons of
mass destruction. That is why we have commissions. That is why
tomorrow, in an almost unprecedented fashion, the National Security
Adviser to the President will testify before the 9/11 Commission. I am
confident she will perform admirably because she is an incredibly
intelligent and capable individual.
The fact is, to argue that we should have left Iraq under the rule of
this incredibly cruel person who used weapons of mass destruction, who
had weapons of mass destruction in 1991, was continuing to attempt to
acquire weapons of mass destruction, and if in power would continue to
try to acquire those weapons, certainly flies in the face of the facts
about Saddam Hussein's regime.
Senator Byrd says we should not have gone into Iraq in the first
place and that we should not be there now. I respect the view. I
strongly disagree with it, and I think the facts indicate that is not
the case. We could argue for days about it, but right now at this
moment we need to send a message not only to the Sunnis in Iraq and the
minority of Shias in Iraq who are taking up arms and killing Americans
that we are there to stay. We are there to stay and we will see it
through. If we fail, if we cut and run, the results can be disastrous.
Those results would be the fragmentation of Iraq, to start with, on
ethnic and religious lines. The second result would be an unchecked
hotbed of training ground and birthing of individuals who are committed
to the destruction of the United States of America.
We will never solve the war on terror as long as there are millions
of young men standing on street corners all over the Middle East with
no hope, no job, no opportunities, no future. They are the breeding
ground. They are the ones who are taken off the streets and taken into
the madrasahs--funded by the Saudis, by the way--and taught to hate and
kill, and who want to destroy America, the West, and all we believe in.
Their hatred is not confined to the United States of America, as the
citizens of Spain have found out, much to their dismay and tragedy.
What happens if we win? What happens if we see this thing through? It
will be hard and it will be difficult and perhaps we need more troops.
I have said for a long time that we needed more troops of certain
types, but we have to see this thing through. And what will happen?
What will happen is that we will affirm the profound and fundamental
belief upon which this Nation was founded, that all men and women are
created equal and endowed by their Creator with certain unalienable
rights, and they are not just in the Western Hemisphere; they are not
just in the United States of America; they are not just in Europe. The
people in the Middle East have the same hopes, beliefs, and yearnings
for freedom and democracy, and they have a right to determine their own
future just as have our own citizens and citizens throughout the world.
When they achieve that--and it will be long and hard and difficult--
it will send a message to every despotic regime, every religious
extremist throughout the Middle East, their day is done because in a
democratic, free, and open society the people want to live in peace
with their neighbors and with the world.
So there is a lot at stake. I grieve every moment, as every American
does, for the loss of these brave young
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Americans' lives. They have made a supreme sacrifice, and we will honor
their memory, but at least their grieving families will know they
sacrificed in the cause of freedom.
At this particular moment of crisis--and it is a crisis--I urge all
of my colleagues and all Americans to join together in this noble
cause. Yes, we are free to criticize; yes, we are free to make
recommendations and suggestions; but the awesome responsibility lies
with all of us, led by the President of the United States, as we
attempt to carry out what is the most noble act that no country in the
world has ever done besides the United States of America, and that is
to shed our most precious blood and expend our treasure in defense of
someone else's freedom in the hope that they may enjoy the fruits of a
free and open society in a democracy that is guaranteed to all men and
women by our Creator.
I yield the floor.
Mr. DOMENICI. Mr. President, I strongly support the Pregnancy and
Trauma Care Access Protection Act of 2004.
I thank Majority Leader Frist for proactively addressing this crisis.
Across America, health care providers, especially health care providers
that work in high-risk services such as obstetricians, gynecologists,
and emergency personnel, have faced difficulty obtaining affordable
medical liability coverage. Doctors are being hit with dramatic
increases in the premiums they pay for liability insurance--if
insurance is even available in their area.
These soaring costs are depriving patient's access to crucial medical
care, especially in rural areas, where some services are already in
short supply. In a number of instances, doctors are forced to relocate
their practice as hospitals and physicians find it increasingly
difficult to continue offering certain services. Without real reform,
more and more Americans will find that health care services are simply
going to disappear from their communities. And, in my opinion, this is
unacceptable, especially when a reasonable solution is at hand.
There is a map I have seen in this chamber. This map is of the United
States, and each of the States is color-coded: red if the State is in
crisis, yellow if the State is showing problems, and white if the State
is currently OK.
I am very proud that my State, New Mexico, is one of the six states
that is white. New Mexico is OK because in 1976, the State legislature
recognized there was a problem with medical malpractice, and they
passed reform. Part of this reform included caps on noneconomic
damages. And, as the map shows, it has worked. States with realistic
limits on noneconomic damages are faring better. Physicians in most
states with caps on non-economic damages in medical malpractice cases
pay lower insurance premiums. Reasonable caps keep premiums from rising
quickly.
Unquestionably, truly injured parties must have access to our courts
to adjudicate their claims. And injured patients must be compensated
for their economic damages such as cost of future medical care and lost
wages. However, trial lawyers have taken advantage of our civil justice
system to further their own interests. The explosion of malpractice
lawsuits and subsequent growth of astronomical jury awards have
tremendously increased the costs of medical malpractice insurance.
Premium increases have jumped as much as 81 percent over the last 2
years, according to some insurers. Frivolous lawsuits combined with
excessive judgments are destroying the doctor-patient relationship and
driving professionals out of medical practice all together. This
reality has terrible consequences for all Americans.
The bill we are debating today is real reform. It provides an
unlimited amount of damages for actual economic loss. It caps
noneconomic damages, it has more reasonable punitive damages awards, a
uniform statute of limitations, and it provides flexibility to States
by allowing State laws to supercede Federal limits on damages.
This bill creates directives for a malpractice system that currently
is unpredictable and largely random. The rising cost of medical
malpractice insurance is a serious threat to the well being of American
citizens and our Nation's healthcare system. It is time for Congress to
pass meaningful legislation that will address our Nation's health care
crisis.
Mr. BYRD. Mr. President, the Senate today is considering a procedural
vote on a motion to recommit the Foreign Sales Corporation/
Extraterritorial Income (FSC/ETI) legislation. This is an effort to
bring to the Senate a remodeled bill--one containing popular energy tax
incentives--that will make a vote against it less politically
palatable. This is much less about enacting good national policies than
it is about producing campaign ads. This is less about creating jobs
than it is about playing partisan politics. It is certainly less about
the very important business of formulating a comprehensive national
energy policy than it is about scoring points for the majority's
campaign contributors. As the Members of this body know well,
bipartisan energy legislation, including a very similar package of
energy tax incentives, passed this body twice already--once in April
2002, in the 107th Congress, and again in July 2003, in the first
session of this Congress.
I support, and have strongly advocated, many of these targeted energy
tax provisions. In their totality, these incentives can be a helpful
stimulus to get our Nation's energy policy back on track, and the
Senate's proposal has had support in numerous industry sectors as well
as among consumers. However, it is a rotten carrot that is dangling
before us. This is yet another perverse, backdoor attempt to buy off
Democratic votes by adding popular provisions to a Senate bill, while
simultaneously preventing Democratic Senators from offering their own
amendments on the floor and preventing them from protecting their
interests during conferences.
The majority is preventing Democrats from getting votes on other very
important policy matters. There are many things that this Senate must
address, including passing these energy tax incentives, but the
majority needs to stop playing games with its Democratic colleagues.
The Senate deserves better.
The Senate finds itself handcuffed by the same authoritarian dictates
from the Bush administration that have led to some of the fiercest
partisan passions that this body has seen in decades. Gone is the
traditional spirit of cooperation. Gone is the belief that the needs of
the Nation stand above the ambitions of political party. It is a
disheartening turn for this historic Chamber.
Despite its campaign-driven rhetoric, this lipservice and corporate
coddling have been the sum total of this administration's economic,
health care, energy, and so many other policies. From the beginning,
the administration's tax cuts have primarily benefited the wealthy.
Hope for a bipartisan Medicare prescription drug benefit was high, but
all that was left was a prescription for protecting the pharmaceutical
industry and a drug benefit that is a sham for America's seniors.
Progress on an energy strategy for the country began cooperatively, but
quickly dissolved as Democrats were locked out of conference
negotiations, their seats filled by special interest lobbyists.
If the Republican majority wants to get something done in a closely
divided Senate, it can, but it has to work with the other side of the
aisle at all stages of the legislative process. That means respecting
the committee process, respecting the rights of Senators to offer--and
get votes on--amendments on the floor. It means truly including
Democrats in conference deliberations, and defending the position of
the Senate in conference negotiations--not buckling under pressure from
the White House. I believe that, if the majority would do this, we
would follow a better, more productive legislative path instead of
voting on--and failing to invoke--cloture so often.
Mr. FEINGOLD. Mr. President, once again we are faced with an ill-
advised medical malpractice bill coming to the Senate floor without any
committee consideration. Some argue that we have a malpractice
insurance ``crisis'' that is driving doctors from the practice of
medicine, particularly in the field of obstetrics and gynecology, or
OB/GYN. This is a serious issue and it deserves close examination. But
we haven't yet explored the issue in the Senate at all. Nor have we
examined the issue of how malpractice cases may
[[Page S3889]]
be affecting the practice of emergency medicine. No committee has held
hearings or marked up a bill on these topics.
In fact, no work has apparently been done behind the scenes since the
Senate refused to invoke cloture on S. 2061. Instead, once again, an
extreme and unbalanced proposal has been brought directly to the floor
and Senators are expected to vote for it without any committee having
looked into the facts or considered alternatives. That is not how the
legislative process should work.
I would like very much for Congress to address the problem of
malpractice insurance premiums once we understand the seriousness of
the problem and the effectiveness of the proposed solutions. But by
bringing this bill directly to the floor only 6 weeks after a nearly
identical bill failed to achieve the necessary vote, the majority shows
that it is not serious about addressing the problem. It appears that
what is going on here is a cynical exercise, designed only to fail and
to provide fodder for political attacks. This issue deserves better and
I hope that there will be some effort to address it in a serious,
bipartisan manner.
I will vote nay on cloture.
Mr. KENNEDY. Mr. President, today's vote on S. 2207 is a test of the
Senate's character. In the past, this body has had the courage to
reject the simplistic and ineffective responses proposed by those who
contend that the only way to help doctors is to further hurt seriously
injured patients. Unfortunately, as we saw in the Patients' Bill of
Rights debate, the Bush administration and congressional Republicans
are again advocating a policy which will benefit neither doctors nor
patients, only insurance companies. Caps on compensatory damages and
other extreme tort reforms are not only unfair to the victims of
malpractice, they do not result in a reduction of malpractice insurance
premiums.
Once more, we must stand resolute.
We must not sacrifice the fundamental legal rights of seriously
injured patients on the altar of insurance company profits. We must not
surrender our most vulnerable citizens to the avarice of these
companies.
This bill contains the same arbitrary and unreasonable provisions
which were decisively rejected by a bipartisan majority of the Senate
twice within the past year. The only difference is that the bill
rejected in February took basic rights away only from women and newborn
babies who are the victims of negligent obstetric and gynecological
care, while this bill includes victims of negligent emergency trauma
care as well. Broadening the bill does not make it more acceptable. On
the contrary, it only expands the unfairness to an additional category
of malpractice victims.
This legislation would deprive seriously injured patients of the
right to recover fair compensation for their injuries by placing
arbitrary caps on compensation for noneconomic loss in all obstetrical
and gynecological cases and in all emergency and trauma care cases.
These caps only serve to hurt those patients who have suffered the most
severe, life-altering injuries and who have proven their cases in
court.
They are babies who suffered serious brain injuries at birth and will
never be able to lead normal lives. They are the women who lost organs,
reproductive capacity, and in some cases even years of life. They are
the children who are permanently injured when emergency room doctors
fail to provide proper medical treatment after an accident. These are
life-altering conditions. It would be terribly wrong to take their
rights away. The Republicans talk about deterring frivolous cases, but
caps by their nature apply only to the most serious cases which have
been proven in court. These badly injured patients are the last ones we
should be depriving of fair compensation.
A person with a severe injury is not made whole merely by receiving
reimbursement for medical bills and lost wages. Noneconomic damages
compensate victims for the very real, though not easily quantifiable,
loss in quality of life that results from a serious, permanent injury.
It is absurd to suggest that $250,000 is fair compensation for a child
who is severely brain injured at birth and, as a result, can never
participate in the normal activities of day to day living; or for a
woman who lost her reproductive capacity because of an OB/GYN's
malpractice; or for a patient who suffered a devastating heart attack
because a negligent emergency room doctor ignored his severe chest
pains and sent him home.
This is not a better bill because it applies only to patients injured
by malpractice in three medical categories. That just makes it even
more arbitrary.
The entire premise of this bill is both false and offensive. Our
Republican colleagues claim that women and their babies must sacrifice
their fundamental legal rights in order to preserve access to OB/GYN
care, and that those seeking care in a hospital emergency room must
leave their rights at the door. The very idea is outrageous. For those
locales--mostly in sparsely populated areas--where the availability of
specialists is a problem, there are far less drastic ways to solve it.
This bill is based on the false premise that the availability of OB/
GYN and trauma care physicians depends on the enactment of draconian
tort reforms. If that were accurate, States that have already enacted
damage caps would have a higher number of OB/GYNs providing care.
However, there is in fact no correlation. States without caps actually
have 28.4 OB/GYNs per 100,000 women, while States with caps have 25.2
OB/GYNs per 100,000 women.
Nor is there any correlation between access to emergency trauma care
and whether a State has enacted restrictions on the compensation that
malpractice victims can receive. In fact, 7 of the top 10 States
identified in the Journal of the American Medical Association, March
26, 2003, as having the highest number of level I and II trauma centers
per million residents do not cap damages in malpractice cases. Five of
the States with the best availability of trauma centers have actually
been listed as malpractice ``crisis'' States by the AMA. That is worth
repeating; 7 of the 10 States whose residents have the greatest access
to emergency care do not limit damages. In contrast, four States that
the AMA identifies as ``doing OK,'' having satisfactory tort laws, fail
to have an adequate number of trauma centers to serve their residents.
And that is only one of many fallacies in this bill. If the issue is
truly access to OB/GYN and emergency care doctors, why has this bill
been written to shield from accountability HMOs that deny
needed medical care to a woman suffering serious complications with her
pregnancy or to a child in need of emergency care after a serious
accident, a pharmaceutical company that fails to warn of the dangerous
side effects caused by its new drug, and a manufacturer that markets a
medical device which can seriously injure the user. Who are the authors
of this legislation really trying to protect?
In reality, this legislation is designed to shield the entire health
care industry from basic accountability for the care it provides to
women and their infant children and to patients in need of emergency
treatment. It is the first step toward broader legislation which would
shield the industry from accountability in all health care decisions
involving all patients. While those across the aisle like to talk about
doctors, the real beneficiaries will be insurance companies and large
health care corporations. This legislation would enrich them at the
expense of the most seriously injured patients; whose entire lives have
been devastated by medical neglect and corporate abuse.
This legislation is attempting to use the sympathetic family doctor
as a Trojan horse concealing an enormous array of special legal
privileges for every corporation which makes a health care product,
provides a health care service, or insures the payment of a medical
bill. Every provision of this bill is carefully designed to take
existing rights away from those who have been harmed by medical neglect
and corporate greed.
In addition to imposing caps, this legislation would place other
major restrictions on seriously injured patients seeking to recover
fair compensation. At every stage of the judicial process, it would
change long-established judicial rules to disadvantage patients and
shield defendants from the consequences of their actions.
When will the Republican Party start worrying about injured patients
and
[[Page S3890]]
stop trying to shield big business from the consequences of its
wrongdoing?
If we were to arbitrarily restrict the rights of seriously injured
patients as the sponsors of this legislation propose, what benefits
would result? Certainly less accountability for health care providers
will never improve the quality of health care. It will not even result
in less costly care. The cost of medical malpractice premiums
constitutes less than two-thirds of 1 percent, 0.66 percent, of the
Nation's health care expenditures each year. Malpractice premiums are
not the cause of the high rate of medical inflation.
In this era of managed care and cost controls, it is ludicrous to
suggest that the major problem facing American health care is
``defensive medicine.'' The problem is not ``too much health care,'' it
is ``too little'' quality health care.
A CBO report released in January of this year rejected claims being
made about the high cost of ``defensive medicine''. Their analysis
``found no evidence that restrictions on tort liability reduce medical
spending.'' There was ``no statistically significant difference in per
capita health care spending between States with and without limits on
malpractice torts.''
The White House and other supporters of caps have argued that
restricting an injured patient's right to recover fair compensation
will reduce malpractice premiums. But there is scant evidence to
support their claim. In fact, there is substantial evidence to refute
it. In the past few years, there have been dramatic increases in the
cost of medical malpractice insurance in States that already have
damage caps and other restrictive tort reforms on the statute books, as
well as in States that do not. No substantial increase in the number or
size of malpractice judgments has suddenly occurred which would justify
the enormous increase in premiums which many doctors are being forced
to pay. The reason for sky-high premiums cannot be found in the
courtroom.
Caps are not only unfair to patients, they are also an ineffective
way to control medical malpractice premiums. Comprehensive national
studies show that medical malpractice premiums are not significantly
lower on average in States that have enacted damage caps and other
restrictions on patient rights than in States without these
restrictions. Insurance companies are merely pocketing the dollars
which patients no longer receive when ``tort reform'' is enacted.
Let's look at the facts. Based on data from the Medical Liability
Monitor on all 50 States, the average liability premium in 2003 for
doctors practicing in States without caps on malpractice damages,
$35,016, was less than the average premium for doctors practicing in
States with caps, $40,381. There are many reasons why insurance rates
vary substantially from State to State. This data demonstrates that it
is not a State's tort reform laws which determine the rates. Caps do
not make a significant difference in the malpractice premiums which
doctors pay. This is borne out by a comparison of premium levels for a
range of medical specialties.
Focusing on premiums paid by OB/GYN physicians, the evidence is the
same. Data from the Medical Liability Monitor shows that the average
liability premium for OB/GYNs in 2003 was actually slightly higher in
States with caps of damages, $63,278, than in States without caps,
$59,224. It also showed that the rate of increase last year was higher
in States with caps, 17.1 percent, than it was in States without caps,
16.6 percent.
This evidence clearly demonstrates that capping malpractice damages
does not benefit the doctors it purports to help. Their rates remain
virtually the same. It only helps the insurance companies earn even
bigger profits. As BusinessWeek magazine concluded after reviewing the
data, ``the statistical case for caps is flimsy,'' March 3, 2003 issue.
If a Federal cap on noneconomic compensatory damages were to pass, it
would sacrifice fair compensation for injured patients in a vain
attempt to reduce medical malpractice premiums. Doctors will not get
the relief they are seeking. Only the insurance companies, which
created the recent market instability, will benefit.
Insurance industry practices are responsible for the sudden dramatic
premium increases which have occurred in some States in the past few
years. The explanation for these premium spikes can be found not in
legislative halls or in courtrooms, but in the boardrooms of the
insurance companies themselves.
Insurers make much of their money from investment income. Interest
earned on premium dollars is particularly important in medical
malpractice insurance because there is a much longer period of time
between receipt of the premium and payment of the claim than in most
lines of casualty insurance. The industry creates a ``malpractice
crisis'' whenever its investments do poorly. The combination of a sharp
decline in the equity markets and record low interest rates in recent
years is the reason for the sharp increase in medical malpractice
insurance premiums. What we are witnessing is not new. The industry has
engaged in this pattern of behavior repeatedly over the last 30 years.
Last year, Weiss Ratings, Inc., a nationally recognized financial
analyst conducted an in-depth examination of the impact of capping
damages in medical malpractice cases. Their conclusions sharply
contradict the assumptions on which this legislation is based. Weiss
found that capping damages does reduce the amount of money that
malpractice insurance companies pay out to injured patients. However,
those savings are not passed on to doctors in lower premiums.
Between 1991 and 2002, the Weiss analysis shows that premiums rose by
substantially more in the States with damage caps than in the States
without caps. The 12-year increase in the annual malpractice premium
was 48.2 percent in the States that had caps, and only 35.9 percent in
the States that had no caps. In the words of the report: ``On average,
doctors in States with caps actually suffered a significantly larger
increase than doctors in States without caps . . . In short, the
results clearly invalidate the expectations of cap proponents.''
Doctors, especially those in high risk specialties, whose malpractice
premiums have increased dramatically over the past few years do deserve
premium relief. That relief will only come as the result of tougher
regulation of the insurance industry. When insurance companies lose
money on their investments, they should not be able to recover those
losses from the doctors they insure. Unfortunately, that is what is
happening now.
Doctors and patients are both victims of the insurance industry.
Excess profits from the boom years should be used to keep premiums
stable when investment earnings drop. However, the insurance industry
will never do that voluntarily. Only by recognizing the real problem
can we begin to structure an effective solution that will bring an end
to unreasonably high medical malpractice premiums.
There are specific changes in the law which should be made to address
the abusive manner in which medical malpractice insurers operate. The
first and most important would be to subject the insurance industry to
the Nation's antitrust laws. It is the only major industry in America
where corporations are free to conspire to fix prices, withhold and
restrict coverage, and engage in a myriad of other anticompetitive
actions. A medical malpractice ``crisis'' does not just happen. It is
the result of insurance industry schemes to raise premiums and to
increase profits by forcing antipatient changes in the tort law. I have
introduced, with Senator Leahy, legislation which will at long last
require the insurance industry to abide by the same rules of fair
competition as other businesses. Secondly, we need stronger insurance
regulations which will require malpractice insurers to set aside a
portion of the windfall profits they earn from their investment of
premium dollars in the boom years to cover part of the cost of paying
claims in lean years. This would smooth out the extremes in the
insurance cycle which have been so brutal for doctors. Thirdly, to
address the immediate crisis that some doctors in high risk specialties
are currently facing, we should provide temporary premium relief. This
is particularly important for doctors who are providing care to
underserved populations in rural and inner city areas.
[[Page S3891]]
Unlike the harsh and ineffective proposals in S. 2207, these are real
solutions which will help physicians without further harming seriously
injured patients. Unfortunately, the Republican leadership continues to
protect their allies in the insurance industry and refuses to consider
real solutions to the malpractice premium crisis.
This legislation, S. 2207, is not a serious attempt to address a
significant problem being faced by physicians in some States. It is the
product of a party caucus rather than the bipartisan deliberations of a
Senate committee. It was designed to score political points, not to
achieve the bipartisan consensus which is needed to enact major
legislation. For that reason, it does not deserve to be taken seriously
by the Senate.
Mr. McCAIN. Mr. President, when we first began the Senate debate on
S. 1637 in March, the intended purpose of the measure was to resolve
appropriately the controversy between the United States and the
European Union over the extraterritorial income, ETI, exemption tax
benefit for exports. Almost all of us recognize the critical need to
pass legislation to bring the United States back into compliance with
World Trade Organization, WTO, agreements and stop the burdensome
tariffs now imposed on our manufacturers. Unfortunately, achieving the
legislation's worthy purpose is in jeopardy due to a host of special
interest tax provision add-ons. I do not support these latest add-ons
and, as such, must vote against today's cloture vote.
When S. 1637 was presented to the Senate, it was a 378-page bill.
Although only one roll call vote has occurred on an amendment during
the floor consideration, the bill had grown to some 527 pages by the
last cloture vote on March 22. I reluctantly voted for cloture, voicing
my strong concerns about the direction the bill was going at the time.
But instead of reigning in the special interest add-ons, they are only
growing further. The bill has now grown to a 929-page Easter basket of
goodies, but with almost no debate or votes on its provisions,
including the latest addition of $13 billion in energy-related tax
breaks.
I recognize the strong interest of the chairman of the Energy
Committee and others to pass an energy bill. I wish that I could
support the bill that the committee has developed, but in its current
form I cannot. But I can assure the proponents of the energy
legislation that to now shift $13 billion in costs from their bill to
the JOBS bill is not the way to gain support for an energy bill.
Instead, they need to develop an energy bill that is more evenly
balanced between stimulating the supply of conventional fuels and
promoting alternative fuels and energy efficiency.
If the Senate is to consider an energy tax incentive bill or an
energy authorizing bill, we should be following regular order, and
bringing legislation to the floor and debating in its own right.
Instead, we are being asked to simply accept a 362-page energy bill
add-on without debate or further amendments.
With our limited legislative time during this election year, the
Senate would serve the American public far better if it stayed focused
on accomplishing the intended purpose of legislating. Unfortunately,
the JOBS bill, which is a much needed bill, is being dragged down with
the unnecessary weight of billions of dollars in wasteful subsidies,
tax breaks, and special exemptions for special interest industries.
With the Nation facing a half-trillion dollar deficit, now is not the
time for Congress to be enacting new tax credits and carving out sweet
deals for special interests.
Mr. FRIST. Mr. President, today, we will be voting on a cloture
motion to allow the Senate to proceed to debate S. 2207, the Pregnancy
and Trauma Care Access Protection Act of 2004. I strongly urge my
colleagues to vote for the motion to proceed.
It should be clear to all those following this debate that our
medical litigation system is failing the American people. It is failing
our communities, our hospitals, our doctors, our families and, most
importantly, our patients. Unfortunately, this system hurts our most
vulnerable patients the most--those needing help from highly trained
medical specialists like neurosurgeons and obstetricians. Reform of
this broken system is desperately needed, and we must act.
The upcoming vote will allow us to fully debate this critical issue.
If Members have problems with certain parts of the bill that is fine.
Let's move to the bill, offer amendments, and fully debate this needed
reform.
But if action is delayed, we know what will happen: patients will
suffer, women will suffer and babies will suffer. Those seeking care
from emergency rooms and trauma centers will suffer. OB/GYNs will
continue to flee their practices and drop obstetrical services, and
more doctors will refuse to perform vitally needed emergency services.
I remind my colleagues that our current litigation system does more
than simply threaten access to care. 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
unneeded extra tests and procedures. Though the numbers are hard to
calculate, well-researched reports predict savings from reform at tens
of billions of dollars per year.
It directly costs the taxpayers billions. The CBO has estimated that
reasonable broad reform will save the Federal Government $14.9 billion
over 10 years 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. 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 Pregnancy and Trauma Care Access Protection Act. I thank my
colleague Senator Gregg, who has skillfully led this debate, and I
thank Senator Ensign, a leading proponent of reform, who has seen the
current crisis in his own State of Nevada.
This legislation will protect access to care for our most vulnerable
citizens and ensure that those who are negligently injured receive fair
and just compensation. Again, I encourage my colleagues to move this
legislation forward. We cannot afford further delay.
The PRESIDING OFFICER (Mr. Coleman). The Senator from Iowa.
Mr. GRASSLEY. Mr. President, I ask unanimous consent that I be
recognized to make a statement and, upon the conclusion of my
statement, the Senate recess until 2:15 as provided under the previous
order.
The PRESIDING OFFICER. Without objection, it is so ordered.
FSC/ETI
Mr. GRASSLEY. Mr. President, I am extremely disappointed that we have
to be here today debating the FSC/ETI bill. The fact is, with America's
economic health at risk, the bipartisan JOBS bill should have been
debated and voted out of this body last month. Instead, attempts to
move this jobs in manufacturing bill has been stymied. As a result,
American manufacturing is not only being deprived of a competitive
boost that it deserves at a time of no job creation in manufacturing
but, in addition to that, U.S. exporters are stuck with a 6-percent
European tax on our products going there.
This situation has festered for much too long. It has been several
years since the World Trade Organization has ruled that the FSC/ETI
regime did not meet our World Trade Organization obligations that this
Senate and the other body agreed to a long time ago. Since then, we
have known that. It is a fact. We have all known that unless we changed
our current tax system, tariffs against our exports were looming.
To try to avoid these sanctions, Senator Baucus and I came together
over a year ago and formed a bipartisan, bicameral working group to
find a real, permanent solution to this problem.
The result is bipartisan. Remember that nothing gets done in the
Senate that is not bipartisan. We have a jobs in manufacturing act
before the Senate, and we will be voting on that today. This bill was
passed out of my committee by a vote of 19 to 2. That means all
Democrats voted for it. It provided a real and permanent solution to
our FSC/ETI problems in a way which complies with our WTO obligations.
[[Page S3892]]
The bipartisan jobs in manufacturing act helps America's
manufacturing sector. It helps us compete by giving an across-the-board
3-percentage point tax cut to all companies, large or small, that
manufacture in the United States.
At a time when manufacturing is flat, this 3-percent tax cut can make
a real difference to a company's bottom line perhaps bringing up enough
capital and creating enough manufacturing growth to enable it or any
company to hire in the manufacturing sector.
That is something every Senator would like to see. But because of
political games and dilatory tactics by some in the Senate, this relief
is not forthcoming.
I want Americans to understand that Senators on my side of the aisle
are ready, willing, and able to provide a real shot in the arm to
America's manufacturing sector. But after working so long in a
bipartisan way, we are being blocked. We are blocked from providing the
relief that American manufacturing deserves and needs.
In effect, this bill and the American manufacturing sector are being
held hostage to Democratic demands to load this bipartisan legislation
with a bunch of unrelated nongermane amendments. While some of these
amendments are legitimate, others amount to nothing more than a wish
list of political message amendments that have nothing to do with this
very major piece of legislation. I, for one, am tired of watching us
bide our time contemplating a wish list. American manufacturing needs
solutions. It does not need a political wish list.
We have a good bipartisan bill before the Senate, a package that
works for America's workers. But our plea for progress is met with
nothing but demands for including one more item on some political wish
list. You would think adults would make up their minds about what they
want and that would be it.
It would be one thing if a political wish list did no harm, if it
really didn't matter, or if the JOBS bill moved or not. But for
manufacturing it does matter. Delay deprives American manufacturing of
a much needed economic boost. Delay also inflicts real economic harm on
innocent workers across the country.
The World Trade Organization has authorized the European Union to
impose as much as $4 billion in tariffs in retaliation for our failure
to bring our tax laws into compliance with international trade
agreements that this body has already accepted--and accepted years ago.
Last month, on March 1, the European Union began implementing these
sanctions by imposing an additional 5-percent tax on selected U.S.
exports. This 5-percent Euro tax automatically increases by 1 percent
for each month in which the United States of America remains out of
compliance. Thus, when Members voted against stopping debate last
month, the last time this bill was before this body, they contributed
to a 20-percent increase in these tariffs because that additional 1
percent went into effect on April 1. Because of delay, then we have a
6-percent sales tax on our exports to Europe, making a lot of our
businesses uncompetitive.
As you can see from this chart, these sanctions will continue to
climb unless we act and act fast. In May, they rise another 1-
percentage point to 7 percent and continue increasing until they reach
a maximum of 17 percent in March of 2005. After that, then who knows
what is going to happen. But by then we will have a lot of layoffs and
people will wake up to the fact that harm is being done.
The European Union is not bound to cap retaliation at 17 percent.
That is why I said: Who knows? In fact, they are scheduled to review
the effectiveness of these retaliatory taxes at the end of 1 year. If
the Europeans conclude that we are not in compliance, retaliation can
escalate even further to a maximum of $4 billion a year.
If this sounds one sided, America wins more disputes in the World
Trade Organization than we lose. We have won some major disputes
against Europe. One time we won one about American beef being kept out
of Europe. Europe still doesn't like to get some American beef. So we
have imposed a tax on European exports coming into our country because
that is the legal way of handling these disputes after it has been
decided. I use that as an example. Europe has learned a lesson from the
United States and they are doing to us what we have done to them. Why?
Because in one case Europe did not want to abide by a decision, and in
another case, we, up to now, have not abided by a decision. That is why
we have the tax. It is quite obvious in most cases countries abide by
these decisions. If they did not abide by these decisions, we would
have chaos in international trade. We do not.
I make clear to the Members of this body: The effect of voting
against stopping debate last month contributed strongly to raising
tariffs on our exports by 2 percent. If cloture is not invoked this
week, it is certain sanctions will escalate another percentage point,
rising an overall level of 7 percent on selected U.S. exports. The core
legislation should be very clear: A vote against stopping debate is a
vote for higher taxes on our exports.
Which exporters will be hurt? All of them. No, not all of them,
because the European Union was very careful in drawing up the sanctions
list. In many cases, they chose to impose sanctions on U.S. exports
that would most significantly feel the pain of the higher tax tariffs.
They are smart. Thus, highly competitive products with high profit
margins are likely to find themselves on the list.
A press release from the American Forest and Paper Association dated
March 2 of this year says this about European Union tariffs on wood
product exports:
This is a devastating development for an industry that has
already closed more than 220 mills and laid off 120,000
workers since 1997.
Our industry works on such tight profit margins that even a
5 percent tariff will likely price many U.S. wood and paper
products out of our vital European markets. To have this
happen just as United States wood and paper products are
beginning to recover from a decade-long stump does
irreparable harm to our industry.
The European Union has chosen products they could get from other
countries, hoping that the higher tariffs on U.S. exports will price
our products out of the European market, to be replaced by similar
products from other foreign competitors. It is important for Members of
the Senate to understand the effect of pricing U.S. exports out of the
European market is not just temporary. Longstanding business
relationships can be permanently disrupted as European buyers scramble
to replace cost-prohibited U.S. products. Even if our price may go
down, those relationships that are made because of this uncompetitive
atmosphere for American exporters may go on and we never gain back that
market. Once a replacement from another country is found, there is no
guarantee the European buyer will ever buy from the U.S. producer
again. In the end, the lost European export market can be lost forever.
If the Senate votes down this motion to stop debate this month, the
cancer of sanctions will not only continue, it will spread.
On May 1 of this year the European Union will take in 10 more member
countries. These countries will be bound by the same import-export
regime as France and other European Union countries. Thus U.S. exports
to those 10 countries will also face higher tariffs as they try to
compete in these markets.
Now we will look at another chart that shows the list of countries
that will be become part of the European Union starting May 1, 2004:
Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta,
Poland, Slovakia, Slovenia. I hope Senators who vote against stopping
debate today appreciate they are voting not only to raise the Euro tax
on sensitive U.S. exports but are also voting to have that tax applied
to an even broader array of countries.
Some people might argue these sanctions only hurt big companies. Do
not be fooled. They are big, people might argue, and they can absorb a
hit of higher tariffs. The fact is, approximately 90 percent of U.S.
exporters in 2001 were small businesses with 100 employees or less.
These small exporters can ill afford the sting of sanctions on their
bottom line. Products impacted include jewelry, horses, dairy, fruit
and vegetables, toys and games, glass and glassware, animal feed,
leather goods and handbags, textile products, carpets, footwear, soap
and candles, wood
[[Page S3893]]
products, and electric machinery. That is just a small list of 500
different products being hit. The American people are starting to take
notice.
I read in part from a letter I received from the Carpet Rug Institute
headquartered in Dalton, GA, stating:
The United States carpet industry produces 45 percent of
the world's carpet and is a $12 billion per year presence at
the mill.
The carpet industry is extremely competitive, both
domestically and worldwide, with profit margins cut razor
thin.
The potential of an increased duty in the form of a
punitive sanction may make the export of carpet and rug
products by any United States manufacturer in the European
Union market an economic impossibility. For the sake of the
collection of an excess tariff an entire industry may be made
to suffer.
And we are hearing:
Voices from across the country are asking relief from the
escalating Euro tax on our exports.
I will take a look at another letter signed by over 80 businesses and
trade associations. These organizations that signed the letter want to
emphasize the urgency of resolving the FSC/ETI export tax issue as soon
as possible. Quick action on legislation is necessary to both comply
with our WTO obligations and avoid or minimize retaliation against U.S.
products.
. . . the European Union has increased the retaliatory
tariffs from 5 to 6 percent on as much as $4 billion per year
of American products.
These retaliatory tariffs are hurting the U.S. exports to
Europe at a time when they are just beginning to rebound in
the global economy and showing signs of renewed growth.
Moreover, the tariffs negatively impact American workers.
The letter continues:
We urge the Senate and House to pass FSC/ETI legislation
immediately and proceed to conference as soon as possible
thereafter.
Thank you . . . for doing your part to send FSC/ETI bill to
the President's desk without delay, thus minimizing the
economically devastating trade sanctions on U.S. products and
its impact on American workers who produce them.
These organizations span the entire Nation. This is not regional.
Almost every State is going to be impacted by this vote this afternoon.
So let's go to the Northeast: the Virginia Forestry Association, the
Associated Industries of Massachusetts, the Coalition of New England
Companies for Trade, and the Greater Providence Chamber of Commerce.
From our part of the country, the Upper Midwest--the Presiding
Officer is from Minnesota; I am from Iowa--we have the Detroit Regional
Chamber of Commerce, the Minnesota Timber Producers Association, the
Minnesota Agri-Growth Council, the Missouri Forest Products
Association, and the Wisconsin Manufacturers and Commerce.
In the Pacific Northwest, we have the Pacific Coast Council of Custom
Brokers and Freight Forwarders and the Softwood Export Council in the
Pacific Northwest.
From the West, we have the Utah Manufacturers Association, the
California Manufacturers and Technology Association, and the California
Chamber of Commerce.
From the Plains States and the South, we have the Arkansas Forestry
Association, the Louisiana Forestry Association, the Mississippi
Forestry Association, and the Texas Forestry Association.
From the Southeast, we have the Alabama Forestry Association, the
Puerto Rico Manufacturers Association, the Tennessee Chamber of
Commerce and Industry, and the North Carolina Forestry Association.
So as you can see, the entire country is impacted by this European
tax on our exports to that part of the world. Some of the nationally
impacted associations include the Agriculture Retailers Association,
the American Architectural Manufacturers Association, the American
Cotton Shippers Council, the American Farm Bureau Federation, the
American Iron and Steel Institute, the American Peanut Council, the
American Soybean Association, the American Textile Manufacturers
Institute, the Manufacturing Jewelers and Suppliers of America, the
National Association of Manufacturers, the National Corn Growers
Association, and the National Cotton Council. And that is just a
partial list.
What communication to Members of Congress is all about is businesses
crying out for relief--not for the delay that we have already had for 1
month.
Let's be clear about what is at stake. American jobs are at stake
because American competitiveness is at stake.
A vote against stopping debate is a vote against tax relief for
America's beleaguered manufacturing sector--tax relief that goes beyond
nullifying this European tax.
A vote against stopping debate is a vote to prolong the pain across
America. A vote against stopping debate is a vote to increase the
European tax on American exporters yet more than the 6 percent already
there. A vote against stopping debate is a vote to deprive America's
small exporters--because 90 percent of our exporters are small
businesses of 100 employees or less--continued access to the European
market, and access they may never regain.
If my colleagues vote against stopping debate, they might as well be
telling American manufacturing that the United States is closed for
business; that if you want access to the European export markets, you
might as well go overseas and do your business because Members of this
Congress have refused to give these manufacturers the tools they need
to compete.
There is an answer. Stop--stop playing political games; stop pushing
political wish lists; stop jeopardizing economic recovery. Instead,
start supporting the ending of debate; start bringing this bill to
finality; support stopping debate and start enhancing the economic
recovery that is just around the corner in America's manufacturing
sector if we do not snuff it out; support stopping debate and start the
process that eliminates the European tax on our exports.
The choice is clear: Vote no, and you might make a few political
points but I think just for a short period of time. As this Euro-tax
goes up, people are laid off and you lose political points. Vote yes to
stop debate and you are guaranteed to get economic progress.
So let's put aside our political games. Stop this debate. Move to
finality. Consider legitimate amendments. That is what this place is
all about--legitimate amendments, not just making political comment.
I summarize this way: This is like moving the goalposts. We have
heard a lot from the Democratic leadership which claims they support
this bipartisan bill. That is what we are hearing. I know that is what
they are telling their constituents as well. I am afraid the actions of
the Democratic leadership speak louder than their words. My sense is
that there is a political priority to deny President Bush an
opportunity to sign a bipartisan bill either this summer or this fall.
It seems that the objective is to prevent that Rose Garden signing
ceremony from occurring.
Of course, the victims of this strategy happen to be those companies
and those workers who are hit by this Euro-tax as it ratchets up. I
hope I am wrong. But the record gives me pause. I would hope that those
on the other side would put the interests of firms and workers in their
States above that of partisan Presidential campaign strategy. If you
look at the record, you will see dramatic movements in terms of the
demands of people on the other side of the aisle to promote their
political message amendments, most often nongermane.
This chart draws from a favorite activity that we have in the
Midwest, for example, every time Iowa plays Minnesota, and I am
talking, obviously, about football. This jobs in manufacturing bill is
near the Senate goal line. Unfortunately, it seems politics is driving
the other side to move the goalposts.
When we came into session in January, Senator Frist was criticized by
the Democratic leadership for not moving right away this very bill, the
jobs in manufacturing bill. At that time, the goalpost was clear--just
5 yards away. Then, after we were finished with the highway bill and a
couple other bills, Senator Frist attempted to go to this jobs in
manufacturing bill.
Much to my surprise, we were ambushed by the leadership of the other
side with unrelated amendments. I thought I had an understanding with
the floor manager we were going to do amendments first that were
related to the bill and then move to other amendments. That agreement
was not carried out. That event caught me off guard. So a second
goalpost appeared. It was the overtime amendment of my colleague from
Iowa.
[[Page S3894]]
Now, it did not matter that we had voted on it previously. It did not
matter that the amendment dealt with a proposed--not final but a
proposed--Department of Labor regulation. None of that seemed to
matter. That amendment was, and is still, a show-stopper to this
bipartisan bill. So we are at the second goalpost, as it has been
moved.
The demand of the leadership of the other side keeps changing. We
were talking about just a single-digit list of amendments and, for the
most part, hopefully germane amendments. We are not talking about that
anymore. Now, since it looks like an overtime pay vote may be in the
picture, there is a goalpost yet further away.
For the first time we are hearing of other amendments--not Finance
Committee jurisdiction amendments--such as an increase in the minimum
wage, that are new showstoppers.
You can't finish this bill, we are told, even though we are told the
substance is great. Nobody seems to disagree on the substance of this.
So why can't we get a bill to the President? Even though we don't
disagree on the substance, there is still a new goalpost. Heaven help
us how all that turns out.
There is a final goalpost way out there; that is, getting to
conference. We may move through all the goalposts, but then we may be
blocked on whether we get to conference. I hope I am proven wrong in a
few minutes as we vote on this measure.
If we can't get cooperation from the other side, we have a couple
alternatives: One, to go on with other business; two, to look at
reconciliation in late spring. I don't want to go with either of those
options because we can finish this bill now. There is always a time
when the Senate has goodwill between the two parties represented. That
goodwill hopefully will surface just as cream surfaces on milk.
Now it is time to get the job done. I hope we can pass this FSC/ETI
legislation. It is bipartisan. That is the only way you get things done
in the Senate. Consequently, because it is bipartisan, we ought to get
it done. And because it is bipartisan, it deserves better treatment
than it has received thus far.
I yield the floor.
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