“Exorbitant malpractice settlements have corrupted the medical system to the point where doctors can no longer afford insurance premiums, hospitals have had to cancel or close essential services like obstetrics and emergency rooms, and ultimately, the rising cost of healthcare is passed on to the patient,” Franks said.  “By setting boundaries through caps on pain and suffering damages, Americans can be sure that they will continue to be justly protected against medical malpractice, but they will not be footing the bill for the rampant and frivolous lawsuits in this nation.”

The HEALTH Act is modeled after California’s 25-year-old successful health care litigation reform, which includes caps on non-economic damages.  It provides for compensation for 100% of plaintiffs’ economic losses.  That is, medical costs, lost wages, future lost wages, rehabilitation costs, and any other economic losses suffered as the result of a health care injury.

The Congressional Budget Office (CBO) estimated last year’s version of the HEALTH Act (H.R. 5) would reduce federal spending for Medicare, Medicaid, and other federal health programs, reducing direct spending by $14.9 billion over the next ten years.  CBO also estimated the bill would result in employers paying less for health insurance, increasing revenues $3 billion over the same period.  A cost estimate of H.R. 4280 is not yet available.

“Unfortunately we live in such a litigious society.  I applaud my colleagues for passing what will prove to be a significant step toward a more efficient and effective judicial system; the result of which will be a more affordable health care for seniors and all Americans.”