Introduction Of The Taxpayer Protection From Frivolous Litigation Act
28 September 2006
HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, September 28, 2006
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Mr. PAUL. Mr. Speaker, I am pleased to introduce the Physicians and Taxpayers Protection
from Frivolous Litigation Act. This bill provides
protection from frivolous lawsuits for
physicians in cases involving Medicare and
Medicaid, and in cases where physicians are
obligated to provide treatment under the
Emergency Medical Treatment and Active
Labor Act (EMTALA).
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Among the legal reforms contained in this act are a loser pays rule providing for physicians
to be reimbursed for costs incurred in
defending against frivolous lawsuits; a tightening
of statutes of limitations to ensure lawsuits
are not just attempts to extort money for
conditions that arose years after treatment
was delivered; reforms of how putative damages
are calculated in order to ensure the
damages bear a relationship to the harm suffered,
limitations on contingent fee contracts
which encourage the filing of frivolous lawsuits,
reforms to calculations of joint and several
liability so a defendant is only liable for
the harm he actually caused, and limitation of
damages in cases where the plaintiff has already
received compensation.
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Frivolous lawsuits and the accompanying increase in malpractice insurance payments
have driven many physicians out of medical
practice. The malpractice crisis has further increased
the cost of health care by forcing physicians
to practice defensive medicine. While
most malpractice reform issues are properly
addressed at the state level, Congress does
have a duty to act to protect physicians from
frivolous lawsuits stemming from cases involving
federally funded programs or federal mandates.
After all, these programs already impose
tremendous costs on physicians. For example,
Medicare imposes so many rules and
regulations on health care providers that the
Medicare code is actually larger than the infamous
tax code!
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EMTALA imposes additional burdens on physicians. EMTALA forces physicians and
hospitals to bear l00% of the costs of providing
care to anyone who enters an emergency
room, regardless of the persons ability
to pay. According to the June 29, 2003 edition
of AM News, emergency physicians lose an
average of $138,000 in revenue per year because
of EMTALA. EMTALA also forces physicians
and hospitals to follow costly rules and
regulations. A physician can be fined $50,000
for a technical EMTALA violation.
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The combined effect of excessive regulations, inadequate reimbursements, and the
risk of being subjected to unreasonable malpractice
awards is endangering the most vulnerable
peoples access to health care. I am
aware of several physicians who have counseled
young people not to enter the health
care profession because of lawsuits, federal
regulations, and low federal reimbursement
rates. Other physicians are withdrawing from
the Medicare and Medicaid programs and cutting
their ties with emergency rooms in order
to avoid the EMTALA mandates. Protecting
physicians from frivolous lawsuits who are participating
in federal programs or acting to fulfill
federal mandates is an important step in removing
federally created disincentives to providing
care to elderly and low income people.
I therefore call upon my colleagues to stand
up for heath care providers, low income people,
senior citizens, and taxpayers by cosponsoring
the Physicians and Taxpayers Protection
from Frivolous Litigation Act.