TEXAS IS PROOF: REFORMS KEEP DOCTORS WHERE PATIENTS NEED THEM

Kerry-Edwards Should Consider Similar Reforms in Health Care Plan

Washington, DC, September 22, 2004 -- News this week from Texas’ largest medical liability insurer is proof that reigning in excessive health care liability awards will help keep doctors where their patients need them, according to the American Tort Reform Association (ATRA).

The Associated Press (AP) reported that Texas Medical Liability Trust said it will cut its rates by 5 percent starting in January. The insurer decreased rates by 12 percent last January in light of Texas’ health care liability law enacted in 2003.

“Texas is proof that reigning in excessive health care liability awards will help keep health care accessible and affordable,” said ATRA President Sherman Joyce.

The Texas legislature modeled its law after a law enacted in California nearly three decades ago that has helped keep that state’s doctors where their patients need them.

“Neither Senator John Kerry nor John Edwards has supported federal legislation modeled after the California law that has stood the test of time,” Joyce said. “If they want to help keep health care accessible and affordable for all Americans, they should consider adding such a provision to their health care plan.”

Increasing medical liability claims have forced doctors to retire early, stop performing high-risk procedures or move to states with fair laws. According to the American Medical Association, there are only 6 states nationwide that are not in an access-to-health care crisis or showing signs of crisis.

According to the AP article, “13 new insurance companies have entered the Texas market and doctors are returning to their practices.”

The Texas law (H. B. 4) limits the award of noneconomic damages in medical malpractice cases to $250,000 against all doctors and health care practitioners and $250,000 per-facility against health care facilities such as hospitals and nursing homes, with an overall limit of $500,000 against health care facilities.

In addition, Texas’ Proposition 12, which became law in 2003, is a constitutional amendment that provides the Texas Legislature with the authority to place limits on noneconomic damages. Proposition 12 will prevent court challenges to or “judicial nullification” of H.B. 4.

The Association of Trial Lawyers of America has developed a national strategy to coordinate with its state affiliates in systematically targeting civil justice reform laws for repeal. This strategy, called “judicial nullification,” is employed by the personal injury bar to undermine the legislative system by enticing activist judiciaries to use malleable provisions of state constitutions to undo reasonable public policy decisions dealing with tort law made by elected representatives. More than 91 civil justice reform statutes have been struck down, in whole or in part, in 28 states since 1983.

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The American Tort Reform Association (ATRA) is the only national organization dedicated exclusively to tort and liability reform through public education and the enactment of legislation. ATRA's membership includes non profits, small and large companies, as well as state and national trade, business, and professional associations.