News in brief - Aug. 4, 2003

Pa. bill would give judges more say - Bill aims to shield food industry from obesity suits - Congress wrangling over drug importation bill - CBO takes another look at association health plans

Pa. bill would give judges more say

Democratic lawmakers last month introduced bills in the Pennsylvania House and Senate that would give judges more leeway to reduce jury awards in malpractice cases.

Judges now can reduce the awards only when it is "so excessive and unconscionable as to shock the conscience of the court." The legislation proposes letting a judge make the decision based on a number of factors, including age and impairment.

"By allowing a judge to look at a jury's award utilizing the new 'reasonable' standard, we'll be able to weed out excessive awards, effectively enforcing a cap-like system," state Rep. Daylin Leach said in a statement.

Pennsylvania is one of 19 states the AMA says is experiencing a medical liability insurance crisis. The Pennsylvania Medical Society has been pushing for a $250,000 cap on noneconomic damage awards.

Bill aims to shield food industry from obesity suits

The food industry would be protected from lawsuits alleging that its products are responsible for obesity and weight gain under congressional legislation introduced last month by Sen. Mitch McConnell (R, Ky.).

Congress wrangling over drug importation bill

Proponents of legislation to allow patients to import discounted medicine from Canada are pursuing several angles. Language has made it into the Senate's Medicare reform bill, and support seems to be growing among House Republicans. Opposition to the bill also is getting stronger. Letters from Food and Drug Administration Commissioner Mark McClellan, MD, PhD, and the AMA question the safety of imported drugs."While the AMA supports broader availability for prescription drugs at the lowest price possible, quality must be assured," the AMA's letter states. "We believe that this bill could place patients at significant risk of not being certain that their prescription drugs meet accepted standards of purity and efficacy."

CBO takes another look at association health plans

Following U.S. House passage of a bill to allow federally regulated association health plans, the Congressional Budget Office has released its analysis of what effect these insurance arrangements could have on public financing of health care.

The bill would enable trade, industry and professional associations to establish health plans that cross state lines and are immune to state mandates. AHPs could offer stripped down coverage that may potentially be attractive to small businesses that cannot afford to self-insure.

The CBO found that a significant number of likely enrollees in AHP-provided insurance would be individuals who are receiving benefits through Medicaid. However, the office also concluded that the existence of these plans would raise costs for employers in state-regulated health plans. Some of these workers would likely lose employer-sponsored coverage and end up back in Medicaid.

Overall, the report found, there would be a net savings to Medicaid of $112 million over 10 years, but during that same period, it would cost $138 million to add the necessary resources to enable the Dept. of Labor to oversee AHPs.