One of the major concerns about health care reform is the cost. This makes leaving tort reform out of health care reform ridiculous. Frivolous law suits have a significant effect health on care costs, and they also effect the quality of care. Howard Dean made it clear why tort reform was not included in the bill; they don’t want to take on the trial lawyers. At least he’s honest…
Filed under: Economy, Independent, Moderate, Politics, democrats, media | Tagged: dean tort reform, dean trial lawyers, howard dean, howard dean tort reform, tort reform
[...] The Plain and Simple Truth On Tort Reform from Howard Dean [...]
Remember the GOA report regarding the cost of a single payer system that we all grasped to support our arguments against a single payer system…
Well they did a report on medical malpractice and could not find any evidence to substantiate the claims of lawsuits impacting health care costs, access to health care or defensive medicine (with one possible lose connection relating to OBGYN). But of course you will not see this report on any media outlet swinging left or right.
http://www.gao.gov/new.items/d03836.pdf
Then there is the CBO report which had this to say about tort reform:
“But even large savings in premiums can have only a small direct impact on health care spending–private or governmental–because malpractice costs account for less than 2 percent of that spending.”
http://www.cbo.gov/doc.cfm?index=4968&type=0#t3
And of course there is Tillinghast-Towers Perrin (one of the largest in the world that provides risk management for the insurance and reinsurance industry).
According to the actuarial consulting firm Towers Perrin, medical malpractice tort costs were $30.4 billion in 2007, the last year for which data are available. We have a more than a $2 trillion health care system. That puts litigation costs and malpractice insurance at 1 to 1.5 percent of total medical costs. That’s a rounding error. Liability isn’t even the tail on the cost dog. It’s the hair on the end of the tail.
Of that 1 to 1.5 percent what portion of that is “frivolous”?
http://www.towersperrin.com/tp/getwebcachedoc?webc=USA/2008/200811/2008_tort_costs_trends.pdf (Page 10)
And then of course the report from Towers Perrin that states that the total tort cost in the US is 2% of the GDP. What percentage of that is “frivolous” and of that percentage what percentage is “frivolous” corporate lawsuits. So how much are “frivolous” lawsuits driving up the cost of everything? Maybe less than 2 cents on the dollar or maybe even less the 1 cent on the dollar?
http://www.towersperrin.com/tp/getwebcachedoc?webc=USA/2008/200811/2008_tort_costs_trends.pdf
It is unfortunate that everyone is so willing to give up their right to sue with such a small cost to society, if in fact these facts are true. If that is the case then maybe we should ration end of life care as this has a significant cost to society.
In my view $30 billion isn’t and insignificant cost, but part part of the cost that isn’t being calculated in those numbers is the cost of doctors practicing defensive medicine as it is both costly and effecting the quality of care.
In my view this is an issue that is ripe for compromise. Some huge lawsuits are well deserved, but litigating every questionable decision is costing us a fortune, and driving certain specialties out of existence.