Health Reform Contingency Fees Cap Soundly Defeated
In early December, the Senate decisively defeated an amendment to cap the fees plaintiffs' attorneys could collect when winning a medical malpractice case.
January 08, 2010 /24-7PressRelease/ -- Health Reform Contingency Fees Cap Soundly Defeated
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In early December, the Senate decisively defeated an amendment to cap the fees plaintiffs' attorneys could collect when winning a medical malpractice case. The 66-32 vote keeps a path to the court system open for victims of doctor or hospital negligence.
The amendment was the latest attempt by congressional advocates for insurance company interests to deny victims of medical malpractice fair compensation for their injuries. Insurance company lobbyists have for years argued that American consumers will pay less for medical care if we decrease or deny rights to compensation for malpractice victims by capping attorney fees.
A Flawed Theory
At first blush, the argument appears to make sense. The argument is essentially this: If we cut malpractice compensation, insurance company expenses are reduced, which in turn cuts malpractice insurance premiums for doctors, which eventually trickles down to consumers in the form of lowered medical care costs. The problem with this theory, though, is that research from states where medical malpractice caps have been enacted shows that health care costs continue to outstrip inflation for consumers.
The True Effects of Medical Malpractice Caps
The real costs of caps on medical malpractice awards and attorneys' fees are paid by victims of doctor or hospital negligence. Victims have more than one real cost to pay. The first cost is in physical pain due to the injuries they suffer as the result of a health care providers' negligence. The injury may require surgery or lengthy rehabilitation. In many cases, the injury causes a lifetime of health problems from which the victim never fully recovers.
The second cost borne by medical malpractice victims is a purely financial one. It takes the form of lost wages, a loss of a job or career, higher insurance premiums and ongoing medical care. In some cases, these costs run into the hundreds of thousands of dollars.
When attorneys' fees or malpractice awards are capped, it's much less likely that a victim of medical provider negligence will be able to seek compensation in court. Because of the complexity of medical malpractice cases, and because of the determined efforts by insurers and doctors alike not to pay for medical negligence, litigation can be lengthy and costly. This is a cost few consumers could afford to bear alone.
Contingency Fees Enable Malpractice Victims to Get Care And Compensation
Contingency fees enable even the poorest victim of medical negligence to receive medical care and compensation for their injuries. Contingency fees enable the victim to team up with an attorney who is willing to risk what could be months or even years of hard work on behalf of an injured client. America rewards risk-takers and it protects victims of wrongdoing.
Neither of those things happens when contingency fees are capped. By drastically reducing the financial incentives for a medical malpractice lawyer, these caps drastically reduce the chances that an average American will receive compensation for real injuries due to real negligence.
That's what medical malpractice caps are designed to do: cut insurance company costs on the backs of those people unfortunate enough to be hurt by a careless or neglectful doctor or hospital staff.
For now, proponents of a national cap on contingency fees and medical malpractice awards have been stopped short of their goal of denying full, fair compensation for malpractice injuries. Don't be surprised to see insurance company lobbyists and their congressional advocates push to deny victims' rights again.
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