Malpractice reform cuts health care costs
by admin on 04/03/10 at 7:42 am
Charleston Daily Mail
March 4, 2010
FTER more than a year of pursuing only liberal ideas for his health insurance overhaul, President Obama finally met with Republicans to listen to their thoughts on the subject.
One item of interest to the GOP- and of vital importance to the American people – is medical malpractice reform.
Obama said he would be willing to study the issue.
But the potential savings from medical malpractice reform has been studied by no less an authority than the Congressional Budget Office, which said the savings could be huge.
In October, congressional analysts announced that lawmakers could save $54 billion over the next decade with medical tort reforms.
“New research shows that legal reforms would not only lower malpractice insurance premiums for medical providers, but also would spur providers to save money by ordering fewer tests and procedures aimed primarily at defending their decisions in court,” wrote Douglas W. Elmendorf, director of the nonpartisan CBO.
The CBO based its estimate on a package of reforms that would include a $250,000 cap on damages for pain and suffering and a $500,000 cap on punitive damages.
These are reasonable limits that would punish those who practice bad medicine, compensate victims, and reduce medical costs.
The CBO said the federal government would reap a substantial portion of those savings, particularly in the Medicare program. That is an important thing to bear in mind.
