News in brief - March 7, 2005

Liability reform sponsors tee up - Tax credit bills introduced - Medicare Advantage takes off - City votes down law requiring doctors to disclose disciplinary actions

Liability reform sponsors tee up

Sens. John Ensign (R, Nev.) and Judd Gregg (R, N.H.) have introduced legislation that would cap noneconomic damages against doctors at $250,000. Two other bills sponsored by the pair would apply the caps only to obstetrician-gynecologists and emergency department or trauma physicians.

While Senate Republican leaders have not yet determined their strategy on the medical liability issue, they might bring one or more of the bills directly to the floor, according to aides. Opponents aim to block passage by holding off attempts to end debate.

Meanwhile, AMA Immediate Past President Donald J. Palmisano, MD, appeared before the House Small Business Committee Feb. 17 to recount several instances in which patients died, in part, because liability insurance costs had driven needed specialists out of their area.

"These are just a few of the hundreds of stories I have heard as I talk to physicians and patients across the country," Dr. Palmisano said. "They represent the symptoms that tell us our nation is facing a crisis because of a broken medical liability system."

Tax credit bills introduced

Sen. Lisa Murkowski (R, Alaska) has introduced the first health insurance tax credit bill of the 109th Congress. The measure would make $1,000 to $3,000 annual refundable, advanceable credits available to individuals and families with incomes at or below 350% of the federal poverty level.

An enhanced credit would also be available to people with pre-existing chronic conditions because they often face high premiums. The bill would make available a reduced credit for those who meet the eligibility criteria but have the option to purchase employer-sponsored coverage.

Legislation offering tax credits of $1,000 for individuals and up to $3,000 for families has also been introduced in the House by Reps. Mark Kennedy (R, Minn.) and Dan Lipinski (D, Ill.). But as of press time, the measure had not been published.

Medicare Advantage takes off

More than 140 new local Medicare managed care plans have applied to participate in Medicare Advantage. If the Centers for Medicare & Medicaid Services approves the applications, beneficiaries in at least 39 states will have access to a Medicare managed care plan. The agency expects that a total of more than 300 plans will operate in Medicare.

America's Health Insurance Plans President and CEO Karen Ignagni attributed the substantial new interest to payment improvements passed by Congress in 2003.

City votes down law requiring doctors to disclose disciplinary actions

Carbondale, Ill., which made news last year by passing an ordinance capping noneconomic damages awarded in medical liability lawsuits, narrowly voted against a new measure that would have required physicians to notify patients if they have been disciplined by the state in the last five years. The city council voted 4-3 against the measure, after the city's attorney informed it of probable conflicts with state law.

Last year, the city used its "home rule" authority to create its own tort reform package, which included requiring medical liability lawsuits to be filed in the county where the alleged malpractice took place.