Physicians around the country are confronted with skyrocketing increases in medical liability premium costs that, if not addressed, will force more physicians to leave high-risk specialty practices, no longer treat certain medical conditions, relocate or retire prematurely. The impact is already being felt in numerous states, where patients must go elsewhere for certain health care needs and hospitals lack some high-risk specialists needed for community health care.

The American Medical Group Association (AMGA), representing large multispecialty group practices including America’s most prestigious integrated care systems, urges enactment of federal liability reform as proposed in HR 5 and S 607, the HEALTH Acts.

The HEALTH Act provides effective federal remedy that guarantees fair and expeditious compensation of the injured and ensures states’ authority to retain or enact their own provisions. This reasonable reform is modeled after California’s successful state program known as MICRA. After 25 years of implementation, California’s experience is evidence that these reforms slow the rate of liability insurance premium increases, fairly address the needs of the injured, retain open access to the legal system for meritorious claims, and preserve patient access to the medical care they need.

The Health Act:

• Allows injured patients unlimited economic damages (past and future medical expenses, loss of past and future earnings, cost of domestic services, etc.), and up to $250,000 for non-economic damages.
• Maximizes patient recovery of awarded damages by structured limits on attorney contingency fees.
• Provides faster resolution of claims while witnesses and evidence remain.
• Ensures payment of the injured’s future medical expenses.
• Establishes reasonable limits, not caps, on punitive damages.
• Honors states’ rights by allowing states to retain or enact their own reform limits.
• Fairly allocates responsibility by relating defendants’ damage payments to their proportionate share of responsibility for the injury.

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