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2005 Ron Paul Chapter 77
Not linked on Ron Paul’s Congressional website.
Congressional Record [.PDF]
Introducing The Freedom From Unnecessary Litigation Act
27 June 2005
HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Monday, June 27, 2005
2005 Ron Paul 77:1
Mr. PAUL. Mr. Speaker, I am pleased to introduce the Freedom from Unnecessary Litigation
Act. As its title suggests, this bill provides
an effective means of ensuring that those
harmed during medical treatment receive fair
compensation while reducing the burden of
costly malpractice litigation on the health care
system. This bill achieves its goal by providing
a tax credit for negative outcomes insurance
purchased before medical treatment. The insurance
will provide compensation for any
negative outcomes of the medical treatment.
Patients can receive this insurance without
having to go through lengthy litigation and
without having to give away a large portion of
their award to a trial lawyer.
2005 Ron Paul 77:2
Relying on negative outcomes insurance instead of litigation will also reduce the costs imposed
on physicians, other health care providers,
and hospitals by malpractice litigation.
The Freedom from Unnecessary Litigation Act
also promotes effective solutions to the malpractice
crisis by making malpractice awards
obtained through binding, voluntary arbitration
tax-free.
2005 Ron Paul 77:3
The malpractice crisis has contributed to the closing of a maternity ward in Philadelphia and
a trauma center in Nevada. Meanwhile, earlier
this year, surgeons in West Virginia walked off
the job to protest increasing liability rates.
These are a few of the examples of how access
to quality health care is jeopardized by
the epidemic of large (and medically questionable)
malpractice awards, and the resulting increase
in insurance rates.
2005 Ron Paul 77:4
As is typical of Washington, most of the proposed solutions to the malpractice problem involve
unconstitutional usurpations of areas
best left to the states. These solutions also ignore
the root cause of the litigation crisis: the
shift away from treating the doctor-patient relationship
as a contractual one to viewing it as
one governed by regulations imposed by insurance
company functionaries, politicians,
government bureaucrats, and trial lawyers.
There is no reason why questions of the assessment
of liability and compensation cannot
be determined by a private contractual agreement
between physicians and patients. The
Freedom from Unnecessary Litigation Act is
designed to take a step toward resolving these
problems through private contracts.
2005 Ron Paul 77:5
Using insurance, private contracts, and binding arbitration to resolve medical disputes
benefits patients, who receive full compensation
in a timelier manner than under the current
system. It also benefits physicians and
hospitals, which are relieved of the costs associated
with litigation. Since it will not cost as
much to provide full compensation to an injured
patient, these bills should result in a reduction
of malpractice premiums. The Freedom
from Unnecessary Litigation Act benefits
everybody except those trial lawyers who profit
from the current system. I hope all my colleagues
will help end the malpractice crises
while ensuring those harmed by medical injuries
receive just compensation by cosponsoring
my Freedom from Unnecessary Litigation
Act.
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