Medical Liability Reform

Background

At least 20 states are in crisis because soaring health care liability costs and an inability to access liability insurance have caused medical providers to move out of the increasing number of excessively litigious states and have forced hospitals to suspend services.

Without access to practicing physicians and high quality medical facilities, local chambers cannot attract businesses to locate in their areas or recruit highly talented employees to relocate. Additionally, excessive litigation and high medical malpractice rates have added to employers' health care costs and spurred some providers to "err on the side of caution" that comes at the expense of both health plan dollars and patients receiving unnecessary service. This issue isn't just about physicians -- its effects cut across the health care sector. Hospitals need physicians to admit patients. Companies that manufacture medical devices and pharmaceuticals need physicians to use and prescribe their products.

The U.S. Chamber and its affiliate, the Institute for Legal Reform (ILR), continue to work very hard to build support in Congress for the passage comprehensive health system liability reform in the 110th Congress. Excessive litigation and high medical lawsuit costs have increased employers' health care costs and spurred some providers to "err on the side of caution," leading to increases in health care spending and in the volume of unnecessary services that are provided.