Congressional Research Arm Backs Up Tort Reform Savings
January 11, 2010
The Congressional Budget Office sparked a mini firestorm in Washington when it estimated that tort reform would save the federal government (and the taxpayers who fund it) $54 billion in lower health care costs. Trial Lawyers Inc. was aghast and the lawsuit industry’s lackeys on Capitol Hill shot off a letter to CBO questioning the findings. According to a piece in the Washington Examiner, CBO is not backing down. In a letter to Congressman Bruce Braley (a former trial lawyer), CBO concluded:
“After a careful evaluation of the research relevant to tort reform, along with discussions with members of the agency’s Panel of Health Advisors who have particular expertise in this topic, CBO concluded that the weight of empirical evidence now demonstrates a link between tort reform and the use of health care services.”
Translation: Tort reform cuts down on the practice of defensive medicine – including expensive tests doctors order just to avoid being sued. Unfortunately, CBO’s analysis seems to be having little impact on congressional majorites. As I’ve posted earlier, the House health care bill actually punishes states that have dealt effectively with the medical liability crisis.