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Reduce Health Care Costs Now

Aug 31 2009

I have called for a series of public forums on Alabama health care as part of my Common Sense Solutions campaign.  Politicians in Washington are so preoccupied with nationalizing health care that they have failed to address a fundamental problem - malpractice insurance premiums have reached unsustainable levels. 

More and more health care professionals are being forced to leave their chosen profession simply because they can't afford the sky high premiums they are being charged by their insurers.

The high cost of malpractice insurance has especially impacted doctors in rural counties in Alabama and throughout the South where many of their patients are covered by Medicare and Medicaid, with low reimbursement rates.

What can we do to reduce their costs? The last several years have seen an explosion of frivolous lawsuits in the medical malpractice field and they have resulted in higher insurance premiums for all medical professionals. First and foremost, we desperately need medical malpractice lawsuit reform. 

Health care reform without malpractice lawsuit reform is no reform at all. The failure of President Obama to endorse malpractice reform is clear evidence that he is not serious about cost reductions in health care.  Congress must explicitly address the costly lawsuit abuses that hamper our health care system and hurt our economy. 

Those insurance premiums have reached an unprecedented level.  If we don't address this issue, we won't have meaningful cost reductions in health care expenses.  Frivolous lawsuits are a large and ever growing factor to increased health care costs.  Experts estimate that the annual direct cost of such litigation is over $30 billion per year.

The failure of politicians in Washington to address the basic problem of medical malpractice insurance premiums has left many areas of Alabama with a shortage of health care professionals.  Malpractice insurance premiums have increased dramatically here in Alabama and across the nation, while politicians have turned a blind eye. 

Flimsy litigation over pharmaceuticals and medical devices acts as a deterrent to innovation in the marketplace, lengthens the time that it takes to get new drugs and devices approved and adversely affect research and investment decisions on the part of manufacturers.

Defensive medicine is another result of the explosion of litigation.  Doctors frequently order numerous medical procedures and make unnecessary referrals in order to limit their exposure to lawsuits. These unnecessary tests and procedures and referrals result in spiraling medical costs. If we take immediate steps to reform medical malpractice litigation, we will see a corresponding benefit in reduced malpractice premiums for all of our health care professionals.

Sources:
Health Care Reform Silent on Malpractice, by Jerry Zremski, Buffalo News, August 22, 2009

Caving To Trial Lawyers, by Fred Barnes, The Weekly Standard, week of September 7, 2009

Ten Questions Politicians Won't Answer, by Tom Coburn, National Review, August 10, 2009

What Can You Do To Help?
Donate:  Help Tim James become Governor of Alabama.  Tim relies solely on small donor donations from individuals.  https://www.timjames2010.com/?p=Contribute

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Comments 1-3 of 3

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  • Hannah Ellis

    09/14/2009 03:47 AM

    Awesome that you want to reduce health care costs! The maternity care wastefulness in the USA is astounding and we are not getting better results for all the $ we spend. Check out this information obtained form the Big Push For Midwives:

    “Certified Professional Midwives are the only maternity care providers in the United States required to
    undergo specialized clinical training in out-of-hospital settings,” said Katherine Prown, PhD, Campaign
    Manager of The Big Push for Midwives. “Denying women access to maternity care providers with expertise
    in out-of-hospital delivery so that another group of providers can maintain its monopoly on the maternity
    care market is not only bad public health policy, it is fiscally irresponsible.”
    David A. Anderson, the Paul G. Blazer Professor of Economics at Centre College, calculates that if the rate
    of births that take place in private homes and freestanding birth centers increased by less than 10%, the
    United States would save more than $9 billion in maternity care costs each year. A study commissioned by
    the State of Washington found more than $3.1 million in savings each biennium to public and private
    insurers in the state through the utilization of midwives with specialized training in out-of-hospital deliveries.
    “The medical industry realizes that Certified Professional Midwives and out-of-hospital birth are segments of
    the maternity care market that are poised for growth, especially now as we are looking to reform health care,”
    said Steff Hedenkamp, Director of Communications for The Big Push for Midwives. “The AMA and ACOG
    proposals are a smoke-screen, nothing more than a last-ditch attempt to squash the competition before
    Congress finalizes health care reform legislation in the coming weeks.”
    Advocates for Certified Professional Midwives held a briefing on Capitol Hill last month that included a
    panel of experts in epidemiology, economics, public health, and maternity care, who presented research and
    data showing that women whose babies are delivered by Certified Professional Midwives experience
    significant reductions in preterm and low-birth weight—two of the leading causes of infant mortality—racial
    and ethnic disparities in birth outcomes, as well as the costs associated with long-term neonatal care.
    “If Congress and the Administration are committed to real reform, they will look at the evidence instead of
    listening to medical industry lobbyists and realize that, when it comes to maternity care, Certified
    Professional Midwives can make a serious contribution to helping America reduce costs and improve
    outcomes at the same time,” said Prown.
    The Big Push for Midwives Campaign represents thousands of grassroots advocates across the United
    States who support expanding access to out-of-hospital maternity care and the Certified Professional
    Midwives who are specially trained to provide it. The mission of The Big Push includes educating national
    policymakers about the reduced costs and improved outcomes associated with out-of-hospital birth settings
    and advocating for including the services of Certified Professional Midwives in health care reform. Media
    inquiries: Steff Hedenkamp (816) 506-4630, Steff@TheBigPushForMidwives.org.

  • Ron McGough

    09/01/2009 11:24 AM

    The 2 biggest problems in our health-care industry are:

    1) People who are in this country illegally.

    2) Medical malpractice lawsuits.

    I'm glad to see you address the problem like any rational person would instead of just proposing the federal government could do better.

    If the election was held today I would have to vote for Tim James.

  • Amy Johnson

    08/31/2009 05:17 PM

    I think reforming malpractice awards is a great start, but de-regulating the insurance industry where any citizen can purchase any insurance policy regardless of the state in which they live would certainly be the next step. If we removed the state-level restrictions on what insurers must include in plans and instead allowed consumers to drive the contents of the plans and choose plans based on premiums, caps, services according to their needs, then much of the cost issues would be solved. I.E. I do not need maternity care, so why would I want a plan that included a top-of-the-line maternity provision? I don't necessarily want podiatry, maternity, etc. If the state law didn't require the companies to include so much extra "stuff" I could get a cheaper policy that met my individual needs.