House Approves Medical Liability Reform

March 13, 2003

WASHINGTON, DC - Congressman David Dreier (R-CA), Chairman of the House Rules Committee, voted today to approve legislation that will fundamentally reform the medical liability system and cap non-economic damages from malpractice lawsuits. The Help, Efficient, Affordable, Low-Cost Timely Healthcare (HEALTH) Act of 2003, H.R. 5, was approved with bipartisan support, 229-196-1.

"The rising costs of medial liability insurance is negatively affecting the quality of health care provided in this country," Dreier said. "If doctors can't afford to insure themselves, they can't afford to practice medicine. The costs of high liability insurance are also passed on to both employers and employees in the form of higher premiums. The House acted today to bring these rising costs under control so that those who need care can get it when they need it, and those who are trained to provide it can do so."

Specifically, the HEALTH Act provides the following, much-needed reforms:

• Speedy Resolution of Claims: Limits the number of years a person has to file a health care liability action to three years after the date of injury (with some exceptions). This component ensures that claims are brought before evidence is destroyed and while witnesses' memories are fresh.

• Fair Accountability: Weighs the degree of fault so that a person with 1 percent of the blame is not forced to pay 100 percent of the damages. This component eliminates the incentive to look for 'deep pockets,' making one party unfairly responsible for another's negligence.

• Full Compensation for Patient Injuries: Allows patients to recover maximum economic damages such as medical expenses and loss of future earnings.

• Reasonable Limits on Punitive, Non-Economic Damages: Limits punitive and non-economic damages to make the punishment fit the offense. HEALTH Act limits unquantifiable non-economic damages (pain and suffering) to $250,000 but does NOT cap punitive damages.

• Flexibility for States that have Already Enacted Damage Caps: Respects states' abilities to enact and enforce other damage caps than those provided in the plan.

Dreier noted that the legislation passed today was modeled after California's successful reform effort approved in 1970s. "While California has gotten this problem under control, the rest of the country has had more difficulty," Dreier said. "I'm very pleased we've been able to provide the example that is the basis of this important reform."