By Free Press Editor Joe Spear
The Free Press recommended in its editorial a few weeks ago that Congress consider "lawsuit reform" as part of its healthcare overhaul plan.
A Congressional Budget Office analysis at the time estimated a potential $41 billion savings over 10 years, thereby helping healthcare reform trim the deficit even more, the key talking point of proponents.
Well, our friends at the CBO just upped the ante. It now says tort reform, limits on damage awards and other caps on lawyers and their fees, will help stop frivolous lawsuits, but also so-called "defensive medicine" to the tune of $54 billion over 10 years.
That estimate was revised "substantially upward" according to the CBO director's blog because of a larger estimated impact on reducing payouts on medical malpractice suits and decreased utilization of medical procedures that are basically unnecessary unless there's a threat of a lawsuit.
CBO also noted that the higher savings estimate can be attributed to lower overall federal spending on healthcare, presumably in payouts to Medicare and Medicaid patients.
And finally, CBO updated its report on lawsuit reform in response to a question for Sen. Jay Rockefeller, D-W.V., who asked if the CBO could estimate the cost of tort reform on patient outcomes. In other words, would these new restrictions on lawsuits affect healthcare of consumers.
On that, CBO says the studies show mixed messages, but there is only "limited evidence" about the connection.
We stand by our previous editorial. Lawsuit and medical malpractice reform should be part of healthcare reform legislation. Adopting such would also give Democrats a chance to say they've included Republican ideas in the bill.
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The medical malpractice system needs reform more than the health care system. Who can support a system that performs so poorly, is unfair and misses most patients who were negligently injured? See www.MDWhistleblower.blogspot.com under Legal Quality.
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