INTRODUCTION OF THE FREEDOM FROM UNNECESSARY LITIGATION ACT
HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, March 12, 2009
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Mr. PAUL. Madam Speaker, I am pleased to
introduce the Freedom from Unnecessary
Litagation 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.
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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.
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The malpractice crisis has contributed to the
closing of a maternity ward in Philadelphia and
a trauma center in Nevada. Several years
ago, surgeons in West Virginia actually walked
away from their jobs 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.
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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.
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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.