Government
House Democrats offer liability reform alternative
NEWS IN BRIEF — Posted June 13, 2005
A cap on noneconomic damages that adjusts according to inflation is the centerpiece of a medical liability reform measure that several House Democrats unveiled last month.
The legislation uses the $250,000 cap from a seminal 1975 California reform law and applies an economic formula to determine what the money would be worth in current dollars. Bill sponsors estimate that the cap would start at about $878,000 and adjust upward every year.
The American Medical Association supports the original $250,000 limit.
In order to focus the liability protections on physicians, the Democratic bill would exclude pharmaceutical companies and device makers from the list of entities covered by the caps. The legislation also would establish mediation programs, a voluntary medical error reporting system, requirements that liability insurance firms justify rate increases, and sanctions for attorneys who file frivolous lawsuits.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/06/13/gvbf0613.htm.
