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	<title>Comments on: An Overlooked Health Care Cost Cutter: State Medical Liability Reform</title>
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		<title>By: Larry, FL</title>
		<link>http://blog.heritage.org/2009/08/10/an-overlooked-health-care-cost-cutter-state-medical-liability-reform/#comment-101549</link>
		<dc:creator>Larry, FL</dc:creator>
		<pubDate>Sat, 27 Mar 2010 13:45:50 +0000</pubDate>
		<guid isPermaLink="false">http://www.foundry.org/?p=12742#comment-101549</guid>
		<description>Texas implemented a series of tort reform measures in 2003 and 2005. There are measurable consequences, but a significant lowering of health care spending is not one of them. Suits are down, awards are down, but not costs.

Tort reform is a free-market based reform. The idea is that if we reduce the number of suits and limit awards, malpractice insurance companies will have to spend less on suits and awards. That part is valid. Where it gets iffy are the next parts. Those lower costs are supposed to translate into lower premiums, and that has some truth to it too, but there are no assurances all of the savings will translate into lower premiums:

&quot;In 2004, as a result of having fewer claims to pay out, the state&#039;s insurers reported their first profit directly from malpractice premiums since the Texas Department of Insurance began tracking the information in 1992.&quot;

The final free-market effect predicted is that as a result of paying lower malpractice premiums, providers can charge less. They *could*, but *will* they? Apparently not necessarily:

&quot;The caps have saved hospitals millions also. Texas Health Resources, the largest health system in D-FW, now pays $6.9 million in yearly malpractice premiums, down 41 percent from 2004, a spokeswoman said.

Baylor Health Care System, the area&#039;s second-largest system, has seen its malpractice insurance premiums fall an average of 25 percent, said Paul Convery, Baylor&#039;s chief medical officer.

But not one of the hospitals or doctors interviewed for this article said they are cutting the prices they charge to patients or health insurers. Instead, they&#039;re reinvesting the savings in more and better health care.
[...]
For Texas patients, the cost of personal health care – from hospital stays to prescription drugs – continues to increase, according to data from the U.S. Bureau of Economic Analysis. From 2003 to 2004, the most recent data available, personal health care costs increased 7 percent, from $98.7 billion to $105.5 billion, the third-largest year-over-year increase since tracking began in 1980. The largest growth in spending occurred between 2000 and 2002.

Personal health care spending jumped from 10.6 percent of the state&#039;s gross domestic product in 2000 to 11.7 percent in 2004, according to the bureau.

Mr. Black, the UT professor, was not surprised by the lack of savings for patients. The promise of lower prices was a red herring from the start, he said. Medical malpractice costs – both in defense and in payouts – account for at most 2 cents of the health care dollar, he said. Others peg the percentage slightly higher.&quot;

http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-medmal_17bus.ART0.State.Edition2.43983f4.html

The last piece of the tort reform theory is that doctors will order fewer tests and procedures that fall under the heading of &quot;defensive medicine, but since much of our medical system is based on the fee-for-services model, more care means more money for doctors, so again there is no guarantee doctors will change the way they practice medicine as a result of tort reform.

Texas, a Republican state, implemented tort reform five years ago. If it reduces health care spending so much, why hasn&#039;t anyone use data from Texas to make that case? Tort reform is a popular idea for reducing health care costs because most people don&#039;t like lawyers and it doesn&#039;t actually involve reforming our health care system (it&#039;s legal reform), but there is no evidence it will make a significant dent in the cost of health care.</description>
		<content:encoded><![CDATA[<p>Texas implemented a series of tort reform measures in 2003 and 2005. There are measurable consequences, but a significant lowering of health care spending is not one of them. Suits are down, awards are down, but not costs.</p>
<p>Tort reform is a free-market based reform. The idea is that if we reduce the number of suits and limit awards, malpractice insurance companies will have to spend less on suits and awards. That part is valid. Where it gets iffy are the next parts. Those lower costs are supposed to translate into lower premiums, and that has some truth to it too, but there are no assurances all of the savings will translate into lower premiums:</p>
<p>&#8220;In 2004, as a result of having fewer claims to pay out, the state&#8217;s insurers reported their first profit directly from malpractice premiums since the Texas Department of Insurance began tracking the information in 1992.&#8221;</p>
<p>The final free-market effect predicted is that as a result of paying lower malpractice premiums, providers can charge less. They *could*, but *will* they? Apparently not necessarily:</p>
<p>&#8220;The caps have saved hospitals millions also. Texas Health Resources, the largest health system in D-FW, now pays $6.9 million in yearly malpractice premiums, down 41 percent from 2004, a spokeswoman said.</p>
<p>Baylor Health Care System, the area&#8217;s second-largest system, has seen its malpractice insurance premiums fall an average of 25 percent, said Paul Convery, Baylor&#8217;s chief medical officer.</p>
<p>But not one of the hospitals or doctors interviewed for this article said they are cutting the prices they charge to patients or health insurers. Instead, they&#8217;re reinvesting the savings in more and better health care.<br />
[...]<br />
For Texas patients, the cost of personal health care – from hospital stays to prescription drugs – continues to increase, according to data from the U.S. Bureau of Economic Analysis. From 2003 to 2004, the most recent data available, personal health care costs increased 7 percent, from $98.7 billion to $105.5 billion, the third-largest year-over-year increase since tracking began in 1980. The largest growth in spending occurred between 2000 and 2002.</p>
<p>Personal health care spending jumped from 10.6 percent of the state&#8217;s gross domestic product in 2000 to 11.7 percent in 2004, according to the bureau.</p>
<p>Mr. Black, the UT professor, was not surprised by the lack of savings for patients. The promise of lower prices was a red herring from the start, he said. Medical malpractice costs – both in defense and in payouts – account for at most 2 cents of the health care dollar, he said. Others peg the percentage slightly higher.&#8221;</p>
<p><a href="http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-medmal_17bus.ART0.State.Edition2.43983f4.html" rel="nofollow">http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-medmal_17bus.ART0.State.Edition2.43983f4.html</a></p>
<p>The last piece of the tort reform theory is that doctors will order fewer tests and procedures that fall under the heading of &#8220;defensive medicine, but since much of our medical system is based on the fee-for-services model, more care means more money for doctors, so again there is no guarantee doctors will change the way they practice medicine as a result of tort reform.</p>
<p>Texas, a Republican state, implemented tort reform five years ago. If it reduces health care spending so much, why hasn&#8217;t anyone use data from Texas to make that case? Tort reform is a popular idea for reducing health care costs because most people don&#8217;t like lawyers and it doesn&#8217;t actually involve reforming our health care system (it&#8217;s legal reform), but there is no evidence it will make a significant dent in the cost of health care.</p>
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		<title>By: Scott Brown, Obamacare, and Progress &#171; A Voice in the Wilderness</title>
		<link>http://blog.heritage.org/2009/08/10/an-overlooked-health-care-cost-cutter-state-medical-liability-reform/#comment-83099</link>
		<dc:creator>Scott Brown, Obamacare, and Progress &#171; A Voice in the Wilderness</dc:creator>
		<pubDate>Fri, 22 Jan 2010 05:39:21 +0000</pubDate>
		<guid isPermaLink="false">http://www.foundry.org/?p=12742#comment-83099</guid>
		<description>[...] shut on Obamacare, and hopefully will force both parties to open a real, meaningful dialogue about tort reform, allowing insurance to be bought and sold across state lines, and making sure no tax dollars are [...]</description>
		<content:encoded><![CDATA[<p>[...] shut on Obamacare, and hopefully will force both parties to open a real, meaningful dialogue about tort reform, allowing insurance to be bought and sold across state lines, and making sure no tax dollars are [...]</p>
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		<title>By: Matthew Brian, Alaba</title>
		<link>http://blog.heritage.org/2009/08/10/an-overlooked-health-care-cost-cutter-state-medical-liability-reform/#comment-58380</link>
		<dc:creator>Matthew Brian, Alaba</dc:creator>
		<pubDate>Wed, 30 Sep 2009 14:47:19 +0000</pubDate>
		<guid isPermaLink="false">http://www.foundry.org/?p=12742#comment-58380</guid>
		<description>In Alabama, most lawyers won&#039;t take medical malpractice cases anymore.  Attorneys front the costs of trying the cases (usually $100,000 out of the attorney&#039;s own pocket) and they rarely win, because the laws are very favorable to the physician.  SO when a baby is injured by a physician&#039;s negligence, and is paralyzed for life, it is the child&#039;s parents and grandparents that literally go into bankruptcy paying for the child&#039;s care.  (OUR IT IS YOU AND ME THAT PAY FOR THE CHILD&#039;S CARE THROUGH OUR TAXES!!!!)  Is that fair?  If I injure someone in a car accident, I pay for the injuries I caused.  If someone is injured while working for me, I pay for the injuries.  If someone is injured on my property, I pay for the injuries. Why should doctors not have the same responsibilities the rest of us do when they injure someone?  Why is their negligence more excusable than other negligence? </description>
		<content:encoded><![CDATA[<p>In Alabama, most lawyers won&#039;t take medical malpractice cases anymore.  Attorneys front the costs of trying the cases (usually $100,000 out of the attorney&#039;s own pocket) and they rarely win, because the laws are very favorable to the physician.  SO when a baby is injured by a physician&#039;s negligence, and is paralyzed for life, it is the child&#039;s parents and grandparents that literally go into bankruptcy paying for the child&#039;s care.  (OUR IT IS YOU AND ME THAT PAY FOR THE CHILD&#039;S CARE THROUGH OUR TAXES!!!!)  Is that fair?  If I injure someone in a car accident, I pay for the injuries I caused.  If someone is injured while working for me, I pay for the injuries.  If someone is injured on my property, I pay for the injuries. Why should doctors not have the same responsibilities the rest of us do when they injure someone?  Why is their negligence more excusable than other negligence?</p>
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		<title>By: Tort Reform Needs Attention from Statehouse &#171; The Palmetto Insider</title>
		<link>http://blog.heritage.org/2009/08/10/an-overlooked-health-care-cost-cutter-state-medical-liability-reform/#comment-55994</link>
		<dc:creator>Tort Reform Needs Attention from Statehouse &#171; The Palmetto Insider</dc:creator>
		<pubDate>Thu, 17 Sep 2009 16:26:43 +0000</pubDate>
		<guid isPermaLink="false">http://www.foundry.org/?p=12742#comment-55994</guid>
		<description>[...] Heritage Foundation blog last month explored why states should individually address their own tort issues: “In 2005, over 400 [...]</description>
		<content:encoded><![CDATA[<p>[...] Heritage Foundation blog last month explored why states should individually address their own tort issues: “In 2005, over 400 [...]</p>
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		<title>By: John Baites,Henderso</title>
		<link>http://blog.heritage.org/2009/08/10/an-overlooked-health-care-cost-cutter-state-medical-liability-reform/#comment-51117</link>
		<dc:creator>John Baites,Henderso</dc:creator>
		<pubDate>Wed, 26 Aug 2009 06:37:19 +0000</pubDate>
		<guid isPermaLink="false">http://www.foundry.org/?p=12742#comment-51117</guid>
		<description>If there is any doubt in anybody&#039;s mind whether lack of tort reform is not expensive - they can look at what I am facing today.  My son got hurt in a football game last night.  He will have to have an MRI today.  I will have to pay cash $460 for the scan in Tennessee (no tort reform state).  If I drive to Missouri or California where tort reform has been enacted, I would pay $380.  Go to &lt;a href=&quot;http://www.a2zimaging.com/mri.htm&quot; rel=&quot;nofollow&quot;&gt;www.a2zimaging.com/mri.htm&lt;/a&gt; if you doubt what I say. </description>
		<content:encoded><![CDATA[<p>If there is any doubt in anybody&#039;s mind whether lack of tort reform is not expensive &#8211; they can look at what I am facing today.  My son got hurt in a football game last night.  He will have to have an MRI today.  I will have to pay cash $460 for the scan in Tennessee (no tort reform state).  If I drive to Missouri or California where tort reform has been enacted, I would pay $380.  Go to <a href="http://www.a2zimaging.com/mri.htm" rel="nofollow">http://www.a2zimaging.com/mri.htm</a> if you doubt what I say.</p>
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		<title>By: Any serious health care proposal MUST include Tort reform - Politics and Other Controversies - Page 8 - City-Data Forum</title>
		<link>http://blog.heritage.org/2009/08/10/an-overlooked-health-care-cost-cutter-state-medical-liability-reform/#comment-50572</link>
		<dc:creator>Any serious health care proposal MUST include Tort reform - Politics and Other Controversies - Page 8 - City-Data Forum</dc:creator>
		<pubDate>Sun, 23 Aug 2009 23:53:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.foundry.org/?p=12742#comment-50572</guid>
		<description>[...] for administra&#173;tion, claimants&#8217; attorneys&#8217; fees, and defense costs.&#8221; &quot;  http://www.foundry.org/2009/08/10/...bility-reform/  People are screaming about 30% overhead costs of insurance companies. Maybe we need a public [...]</description>
		<content:encoded><![CDATA[<p>[...] for administra&shy;tion, claimants&#8217; attorneys&#8217; fees, and defense costs.&#8221; &quot;  <a href="http://www.foundry.org/2009/08/10/...bility-reform/" rel="nofollow">http://www.foundry.org/2009/08/10/&#8230;bility-reform/</a>  People are screaming about 30% overhead costs of insurance companies. Maybe we need a public [...]</p>
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		<title>By: An Overlooked Health Care Cost Cutter: State Medical Liability Reform &#171; My Medical Malpractice Insurance News</title>
		<link>http://blog.heritage.org/2009/08/10/an-overlooked-health-care-cost-cutter-state-medical-liability-reform/#comment-48344</link>
		<dc:creator>An Overlooked Health Care Cost Cutter: State Medical Liability Reform &#171; My Medical Malpractice Insurance News</dc:creator>
		<pubDate>Thu, 13 Aug 2009 15:24:12 +0000</pubDate>
		<guid isPermaLink="false">http://www.foundry.org/?p=12742#comment-48344</guid>
		<description>[...] original article   Comments (0) [...]</description>
		<content:encoded><![CDATA[<p>[...] original article   Comments (0) [...]</p>
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		<title>By: BadIdeas: Lexington,</title>
		<link>http://blog.heritage.org/2009/08/10/an-overlooked-health-care-cost-cutter-state-medical-liability-reform/#comment-48061</link>
		<dc:creator>BadIdeas: Lexington,</dc:creator>
		<pubDate>Wed, 12 Aug 2009 15:36:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.foundry.org/?p=12742#comment-48061</guid>
		<description>All you people are ridiculous, everyone has there own ideas but all boil down to preserving status quo in order to protect personal interests.  Even more astounding, all this is done in the name of patriotism.  As with comments that are total disingenuous, all the arguments made above lack philosophical perspective.  Aside from ignoring 4000 years of human thought, this lack of philosophical rigor displayed above represents a complete lack of morality and a political approach that ignores well-defined Christian principles. 
Go to a state that has enacted &quot;major tort reform overhauls&quot; and ask any average person if their medical costs have decreased.  Health care reform is about ensuring affordable access to care for every person legally in the nation; it is not about furthering disguised ideological positions such as tort reform.  Aside from that, are doctors, contracted to perform services within the proposed public plan, protected against inflated negligence suits?   
Also, one previous commenter floated state medical boards as a possible oversight option, which would overtly politicize the entire process. </description>
		<content:encoded><![CDATA[<p>All you people are ridiculous, everyone has there own ideas but all boil down to preserving status quo in order to protect personal interests.  Even more astounding, all this is done in the name of patriotism.  As with comments that are total disingenuous, all the arguments made above lack philosophical perspective.  Aside from ignoring 4000 years of human thought, this lack of philosophical rigor displayed above represents a complete lack of morality and a political approach that ignores well-defined Christian principles.</p>
<p>Go to a state that has enacted &quot;major tort reform overhauls&quot; and ask any average person if their medical costs have decreased.  Health care reform is about ensuring affordable access to care for every person legally in the nation; it is not about furthering disguised ideological positions such as tort reform.  Aside from that, are doctors, contracted to perform services within the proposed public plan, protected against inflated negligence suits?  </p>
<p>Also, one previous commenter floated state medical boards as a possible oversight option, which would overtly politicize the entire process.</p>
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		<title>By: Euthanasia and Mental Health: It&#8217;s in There &#171; Pond&#8217;rings</title>
		<link>http://blog.heritage.org/2009/08/10/an-overlooked-health-care-cost-cutter-state-medical-liability-reform/#comment-47678</link>
		<dc:creator>Euthanasia and Mental Health: It&#8217;s in There &#171; Pond&#8217;rings</dc:creator>
		<pubDate>Tue, 11 Aug 2009 14:17:12 +0000</pubDate>
		<guid isPermaLink="false">http://www.foundry.org/?p=12742#comment-47678</guid>
		<description>[...] stories on the &#8216;Net this morning about this bill, and the politics swirling around it. The Foundry wonders why it doesn&#8217;t do anything to address medical malpractice suits through to... I suppose you might actually say it does, since you can&#8217;t sue Federal employees for anything. [...]</description>
		<content:encoded><![CDATA[<p>[...] stories on the &#8216;Net this morning about this bill, and the politics swirling around it. The Foundry wonders why it doesn&#8217;t do anything to address medical malpractice suits through to&#8230; I suppose you might actually say it does, since you can&#8217;t sue Federal employees for anything. [...]</p>
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		<title>By: Richard Hill Saint</title>
		<link>http://blog.heritage.org/2009/08/10/an-overlooked-health-care-cost-cutter-state-medical-liability-reform/#comment-47668</link>
		<dc:creator>Richard Hill Saint</dc:creator>
		<pubDate>Tue, 11 Aug 2009 08:18:13 +0000</pubDate>
		<guid isPermaLink="false">http://www.foundry.org/?p=12742#comment-47668</guid>
		<description>Charles Krauthammer&#039;s recent editorial has the right approach. Half measures will not suffice. He advocates abolishing the tort system for medical negligence altogether and subsituting  a system of compensation awarded by a medical board [Think state medical licensing board]. We can win this argument on the Liberal&#039;s terms just as welfare was won when the recipient was seen as the victim of the system.  
The present system fails to provide justice for the injured and to punish the guilty. The worst a civil suit can do is make a doctor&#039;s insurance company pay. A state medical board review can revoke my license or impose any conditions they choose. They can also review all other records as well. We have great sympathy for those of us who were sued,  but none for those sanctioned by the board. We order way too many tests to convince a lay jury of being thorough. I and other physicians reviewing a case wouldn&#039;t be fooled by that and it would stop.  
The trial lawyers are actually right that many injured patients don&#039;t file complaints because of the lengthy and onerous civil proceedures. A prompt review by a medical board would be quite different.  
This process would truly provide quick justice for the injured and protect the public from unsafe medical practitioners. The savings would easily cover the costs of the uninsured.  
Why isn&#039;t it part of the current proposal? </description>
		<content:encoded><![CDATA[<p>Charles Krauthammer&#039;s recent editorial has the right approach. Half measures will not suffice. He advocates abolishing the tort system for medical negligence altogether and subsituting  a system of compensation awarded by a medical board [Think state medical licensing board]. We can win this argument on the Liberal&#039;s terms just as welfare was won when the recipient was seen as the victim of the system. </p>
<p>The present system fails to provide justice for the injured and to punish the guilty. The worst a civil suit can do is make a doctor&#039;s insurance company pay. A state medical board review can revoke my license or impose any conditions they choose. They can also review all other records as well. We have great sympathy for those of us who were sued,  but none for those sanctioned by the board. We order way too many tests to convince a lay jury of being thorough. I and other physicians reviewing a case wouldn&#039;t be fooled by that and it would stop. </p>
<p>The trial lawyers are actually right that many injured patients don&#039;t file complaints because of the lengthy and onerous civil proceedures. A prompt review by a medical board would be quite different. </p>
<p>This process would truly provide quick justice for the injured and protect the public from unsafe medical practitioners. The savings would easily cover the costs of the uninsured. </p>
<p>Why isn&#039;t it part of the current proposal?</p>
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