News in brief - March 24/31, 2003

HEALTH Act heads toward House floor - Rehnquist resigns as HHS IG - CMS plans disease-management demo - Movie ad to call attention to uninsured

HEALTH Act heads toward House floor

A national bill that would cap noneconomic damages awarded in medical malpractice lawsuits at $250,000 is another step closer to becoming law.

The House Judiciary Committee on March 5 and the House Energy and Commerce Committee on March 6 approved the Help Efficient, Accessible, Low-cost, Timely Healthcare Act of 2003, a bill that physicians and insurers say would curb rising liability insurance rates. In addition to capping noneconomic damages, the bill calls for a three-year statute of limitations on when most cases could be filed, and it would hold physicians responsible for only their portion of the damages. The HEALTH Act also would limit punitive damages to whichever is greater, two times the economic damages or $250,000.

Republicans generally support the bill, but Democrats generally oppose it, saying it won't make insurance affordable for physicians and will instead line insurance company pockets. At press time, the bill was slated for mid-March consideration by the full House, which passed a nearly identical measure last year. Also at press time, a companion bill had not been introduced in the Senate.

Rehnquist resigns as HHS IG

HHS Inspector General Janet Rehnquist announced she will step down June 1. Rehnquist had come under fire from members of Congress for several alleged missteps. In November 2002, Sens. Max Baucus (D, Mont.), John Breaux (D, La.) and Charles Grassley (R, Iowa) asked the General Accounting Office to review the IG's office and investigate the departures of six deputy inspectors general since Rehnquist was appointed in August 2001.

"The inspector general job wasn't a good fit for her abilities," Grassley said in a statement. "It's very important that we get a bulldog for the taxpayers on the job."

CMS plans disease-management demo

The Centers for Medicare & Medicaid Services is looking for organizations to participate in a Medicare disease-management demonstration project. Under the demo, CMS would pay qualified organizations a risk-adjusted capitated payment to manage the care of patients with specific conditions such as stroke, congestive heart failure and diabetes. There will also be a risk-sharing option available, the agency said.

Applicants would be required to provide patients with all Medicare-covered services either directly or through other Medicare-certified practitioners. More information about the demo can be found on the CMS Web site (http://www.cms.gov/).

Movie ad to call attention to uninsured

The American Assn. of Health Plans is taking the plight of the uninsured to the big screen. But don't expect a movie on the subject. The group has created an advertisement, which will run in theaters across the country, and that informs patrons that by the end of their movie another 465 Americans will have lost their health insurance.

"Rising costs are exacerbating the uninsured crisis," said AAHP President and CEO Karen Ignagni. "It is time to put partisanship aside and develop meaningful, long-term solutions for our health care problems."