Pregnancy and Trauma Care Access Protection Act of 2004
Legislative Activity
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Motion to proceed to consideration of measure withdrawn in Senate.
April 7, 2004
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Introduced in Senate
March 12, 2004
Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
March 12, 2004
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 462.
March 22, 2004
Motion to proceed to consideration of measure made in Senate. (consideration: CR S3599-3600; text: CR S3599)
April 2, 2004
Cloture motion on the motion to proceed presented in Senate. (consideration: CR S3599; text: CR S3599)
April 2, 2004
Motion to proceed to consideration of measure withdrawn in Senate.
April 2, 2004
Motion to proceed to measure considered in Senate. (consideration: CR S3742-3784)
April 6, 2004
Motion to proceed to measure considered in Senate. (consideration: CR S3877-3880, S3894)
April 7, 2004
Cloture on the motion to proceed not invoked in Senate by Yea-Nay Vote. 49 - 48. Record Vote Number: 66. (consideration: CR S3894; text: CR S3894)
April 7, 2004
Motion to proceed to consideration of measure withdrawn in Senate.
April 7, 2004
Voting History
1 vote recorded • Roll call available
Floor Debate
21 membersWhat members said about S. 2207 on the floor
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Floor Debate
21 membersWhat members said about S. 2207 on the floor
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, we all know we are likely to pass only a few major tax bills this election year, and we know one…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, we all know we are likely to pass only a few major tax bills this election year, and we know one of the most important tax bills is the jobs in manufacturing bill that comes up for a cloture vote tomorrow. We know the only way the JOBS in manufacturing bill can pass is a ``yes'' vote on the motion to stop debate or, as we call it in the Senate, cloture. That vote will be tomorrow.
Once again, we must ask, will the Democrats say no to cloture? Will they say no to stopping debate? Will they refuse to allow us to get to finality on this very important bipartisan legislation that when it comes to a final vote will overwhelmingly pass in the Senate? Will they go on record opposing the provisions that are in this bill? Democrats should not because this is a bipartisan bill. This is a bill that every Democrat member of the Senate Finance Committee voted yes on to report it from committee.
Keep in mind that the jobs in manufacturing bill could be the last train out of town this year. It has to get done if we are going to end the sanctions and tariffs that have been put on U.S. exports to Europe as a result of the United States not following our own trade agreements.
Each time a Member votes against stopping debate, it lessens the chance that this bill is going to go forward. In fact, it kills off many good measures in the jobs in manufacturing bill. From the very beginning, this bill was overwhelmingly bipartisan. In fact, there was a bipartisan agreement that we need to pass this bill because there is a bipartisan agreement of long standing that the United States agrees to international trade agreements, and we have an obligation to do our part and live up to those agreements.
A ``no'' vote on this motion tomorrow is an obstruction to the bipartisanship that is expressed in the language of this bill.
I would like to briefly go through some of the measures that are in this jobs in manufacturing bill. What I am going to refer to is what a lot of Members of both political parties have asked for the consideration of by my committee and for inclusion in the language of this bill. I will go over what is in this bill and sincerely ask why the Democrat leadership is willing to tell its members to kill the bill by voting no to stopping debate.
This bill will end $4 billion a year of sanctions against the United States and our exports. As of March 1, those sanctions are being imposed against U.S. exports of grain, timber, paper, and manufactured goods.
You will later hear my comments on the products that are being hit right now by sanctions. I think each Member ought to know how this is affecting the economy of their district.
First, manufacturing jobs are good jobs in America. They pay 15 percent above the national average. If jobs are related to exports, there is a tariff on your exports in another country and we aren't competitive, those jobs aren't going to exist very long.
Think about what that would do in Waterloo, IA, for one-fifth of the tractors that come off the assembly line being exported. We couldn't afford to lose one-fifth of the jobs at John Deere in Waterloo, IA, because of these tariffs.
We can end the sanctions that are in this bill, but will the Democrats say no to cloture so we don't end sanctions?
This bill provides $75 billion of tax relief to our U.S.-based manufacturing sector to promote factory hiring here in the United States. It is not going to benefit corporations for that portion of their manufacturing overseas.
Will the Democrats say no to $75 billion worth of help, and help create jobs in factories in America, particularly considering the fact that every day you hear comments about outsourcing, and they expect us to do something about outsourcing? This bill will do something about outsourcing.
The jobs in manufacturing bill extends the research and development tax credit through next year. This is a domestic tax benefit that generates research and development in the United States. That translates into good high-paying jobs for workers in the United States--not overseas. The amendment we had on research and development passed overwhelmingly with a bipartisan vote.
Why would Democrats say no to a bipartisan provision in this bill? Will they? I hope not.
The jobs in manufacturing bill extends for 2 years many tax provisions that expired either last year or are going to expire this year. This would include items such as a work opportunity tax credit and the welfare-to-work tax credit and make the merger of those credits permanent. Senator Bayh and Senator Santorum asked for these provisions, and we included them. Will these Senators vote for cloture? They should.
Senator Breaux and Senator Snowe asked for a provision that allows naval shipbuilders to use a method of accounting which results in more favorable income tax credit treatment. We included that provision in this bill for Senator Breaux and Senator Snowe. They each have reasons to vote for cloture to get these amendments to the President for his signature.
There are enhanced depreciation provisions to help the ailing airline industry. Senator Lincoln, Senator Brownback, and Senator Roberts asked for these provisions. I hope they will vote to stop debate tomorrow so we can get to finality on this legislation.
There are what is referred to as new homestead provisions. These were requested by Senator Dorgan, Senator Baucus, Senator Thomas, Senator Enzi, and Senator Crapo. I hope these Senators will vote to stop debate so
what they have asked me to do can get to the President for his signature.
There are rural development provisions to create businesses in counties that are losing population. For example, they provide incentives for starting or expanding rural businesses in a rural outmigration county when it hits a certain percentage of outmigration.
At the request of Senator Dorgan, we also included a new market tax credit for high outmigration counties. These credits help economic development in rural counties that have lost over 10 percent of their population.
There is only one way this homestead and the new market provisions can become law; that is, to have the Senate stop debate. That takes 60 votes.
For Senators we have tried to work with to get their provisions included, if they aren't willing to help stop debate and move this bill along, why would they even ask me to include provisions in the bill if they do not want this bill to move along?
The jobs in manufacturing bill includes brownfields revitalization which was requested by Senators Lautenberg, Dole, and Inhofe. The bill helps tax-exempt investors that invest in the cleanup and remediation of qualified brownfields sites.
I hope those Senators who asked me to include their provisions in my bill will decide they should vote to stop debate. Without getting over that hurdle, you never get to final passage.
Senators Bob Graham, Breaux, and Hatch asked us to include the mortgage bonds revenue measure. It would repeal the current rule that doesn't allow revenue bond payments to be used for issuing new mortgages.
There are 70 cosponsors of this bill. The 70 Members who took time to study this provision on mortgage revenue bonds and signed it surely want this bill to become law. Otherwise, why would they put their signature on it? That means that tomorrow those 70 Senators ought to be stopping debate so we can move on to finality.
Another provision is allowing a deduction for private mortgage insurance. This was asked for by Senator Lincoln and Senator Smith. It benefits people struggling to afford a home. I hope no one votes against their idea. Home ownership is the dream of all Americans. It is the American dream. This provision helps that along a little bit.
Some might say we have the highest percentage of home ownership this country has ever seen at 68 percent. Yes. But what about the other 32 percent? This might help some of those people who might not otherwise be able to afford a home.
In most cases, you have to buy mortgage insurance. If you buy mortgage insurance, it costs money for lower income people who are on the edge of owning a home or not owning a home. This might just help them get their loan through. But a vote against cloture would be a vote against this deduction that might bring the American dream to a few more young people.
Our bill includes the tax credit for employers for wages paid to reservists who have been called to active duty. Senator Landrieu and Senator Allen asked for this provision. I hope we will have their vote tomorrow, if they are serious about helping our guardsmen and reservists who have been called to action because of the war on terrorism. Otherwise, what is the point of asking me to put this in the bill if they are not helping us to move it to finality?
At the request of Senator Schumer and Senator Clinton, we have extended and enhanced the Liberty Zone bonds provided for the rebuilding of Lower Manhattan. We also included $200 million in new tax credits to be used for rail infrastructure projects in the New York Liberty Zone; again, responding to the needs of the people in New York because of what happened on September 11. These two Senators came to me and asked for consideration of these provisions in this bill, and in a bipartisan way, we try to do things and we have responded accordingly.
Are they serious about getting these provisions into law for their New York constituents? If so, then they ought to vote for cloture and move this bill to finality.
We even included the renewable communities provisions requested by Senators Clinton and Schumer.
Will the Senate Democratic leadership ask their members to vote against Liberty Zone funding for meeting the needs of the people of New York by voting no on cloture? We should not deny funding for the Liberty Zone just to prove a political point on a proposed labor regulation that may never be finalized in the first place. Even if it is finalized, Congress can always overturn it under the Congressional Review Act.
Hundreds of regulations are proposed in Washington every week. Very few make it to the finish line. So why is the Democrat leadership holding up funding for the Liberty Zone over a proposed regulation? This is not responsible governance. This is not responsible opposition. There is a legitimacy in our form of government, one party being in the opposition and the other party being in the majority. They play a very important role in making people responsible. Do we hold up every piece of legislation because it is an election year and Members think next year they might be in a majority, so they can do what they want to do?
All of these requests that are made to me, why not hold them up until next year? Then I would not have to be considering them at this point. If they are important, we ought to move this legislation along. In other words, we should have responsible opposition in the process of everybody making their points.
The Liberty Zone needs our help, and we need to behave as adults and get this bill completed.
In the jobs in manufacturing act we increase small business industrial development bonds to spur economic development in rural areas. This was requested by Senator Pryor and Senator Thomas. I hope they will vote for cloture tomorrow.
We have bonds for rebuilding school infrastructure. These were requested by Senator Conrad.
We have included tribal bonds in the jobs in manufacturing bill, requested by Senator Campbell and Senator Johnson. I am sure this is supported by Senator Daschle, as well, because he has a record of supporting Native American projects. These bonds allow the same rules that apply to tax-exempt bonds for State and local governments to apply to Native American tribes issuing tax-exempt bonds to finance facilities on their reservations. That is just an explanation, not something new. In other words, if it is good for one State and local government, why shouldn't it be good for the governance of our tribes?
We have included tribal school bonds, again, as requested by Senator Johnson and Senator Campbell. Under current law, there is no class of bonds designated for the purpose of encouraging school construction on Indian reservations. This provision fills that void. We have a tribal new markets tax credit which was added at the request of Senator Daschle and Senator Campbell. This amendment adds $50 million a year to economic development on reservation land.
Will the Democrat leadership tell Democrats to vote against closing debate and kill these Native American measures? Again, if they do not want to get it done, why did they come to me and ask for me to include these things?
We have also included the Civil Rights Tax Fairness Act. This is at the request of Senator Bingaman and Senator Collins. This is very important.
We have Senator Conrad and Senator Santorum and Senator Bunning asking we add a change in section 815 of the Tax Code. The provision suspends applicable rules imposing income tax on certain distributions to shareholders from the policyholder's surplus account of a life insurance company. This is included in the bill.
We have a special dividend allocation rule that benefits farmers' cooperatives. Senator Lincoln and Senator Coleman asked it be included.
We have other farm provisions that give cattlemen tax-free treatment if they replace livestock because of something beyond their own control, such as drought, floods, or weather-related conditions. Senator Daschle and Senator Thomas asked for that.
At the request of Senator Cantwell and Senator Thomas, we included a provision that allows payments under the National Health Service Corps loan repayment program to be exempt from tax. This is an important measure to enhance the delivery of medical services in rural America.
We included the passenger rail infrastructure tax credits at the request of
Senator Carper. It provides $500 million for intercity passenger rail capital projects. We also included the short-line credits requested by Senator Smith and Senator Brownback.
At the request of Senator Rockefeller and Senator Hatch, we added a provision to allow taxpayers to apply their bonus depreciation against the alternative minimum tax credits. This measure is very important to the steel mills of West Virginia; hence, Senator Rockefeller.
A provision benefiting Oldsmobile dealers was included at the request of Senator Baucus and Senator Bingaman. The proposal provides tax-free treatment for Oldsmobile dealers because their franchise is being terminated.
How many times have we heard Members talk about the need to make broadband available in rural communities? We know it is essential to the economic competitiveness of rural America, particularly since we see so many Asian companies, so far in advance of the United States in broadband. To keep our economy competitive, it ought to be here. But we also know many Democratic Senators support this. It is, likewise, in the bill.
Senator Murray and Senator Smith asked for the forest industry bond provisions in this bill. That allows nonprofits to use tax-exempt bond financing to acquire forest land, to achieve better balance between the goals of conservationists and the timber industry. Up to $1.5 billion in bonds may be issued under this program. That, sir, is a lot of conservation money.
At the request of Senator Boxer, we have included a proposal that would allow employers to take a 50-percent tax credit against the FICA taxes for wages paid to the first responders who are called to active duty. We added a second measure at Senator Boxer's request. This proposal would allow farmers and ranchers to take a 30-percent credit for the installation of irrigation equipment which reduces water use. The credit would be limited to land that has received drought assistance during the past 3 years.
Anyone who votes against cloture is voting to kill all the items I just listed. Why would people come to me as chairman of the Senate Finance Committee and ask me to include provisions in the bill if they do not want to get this bill to the President for signature? Tomorrow, they have their chance.
We had debate extended on this bill 2 weeks ago, and we had a vote to stop debate. Debate was not stopped. So tomorrow we vote again. We have to get over this hurdle to get all these provisions that have been requested in this bill and to get it to the President for his signature.
I hope Members are sincere about all this legislation that is introduced. I hope Members are sincere in telling me how important their amendments are to this bill. I hope Members will show that sincerity tomorrow when we have a chance to stop debate and complete this bill.
All the beneficial provisions I have just discussed are being held hostage this minute because the Democratic leadership is pushing for a vote on an issue that is not even in this bill. The vote is an attempt to embarrass the administration in an election year about a proposed labor regulation on overtime. The Democrats said the regulation was going final, and they had to add it to the jobs in manufacturing bill; otherwise, they would block this bill. That was 2 weeks ago. The regulation is still not final. And who knows, the way bureaucracy moves, it may never be final but continue to tilt at windmills, and what will come.
But it seems to me that it is politics all the time. It is politics from the Democrat leadership, and it is obstructing an important piece of legislation. More importantly, right now, it is obstructing legislation that most of the members of the other party have asked me to include in this bill. Now, why do you ask me to include it in the bill if you are not going to vote to get the bill to the President? This sort of obstructionism is inexcusable because we have worked hard throughout this process to make sure that everyone's concerns--both Republican and Democrat--were incorporated into this bill. Why? Because I know you do not get anything done in this body that is not bipartisan.
People who want to be partisan can be partisan, but they are not going to get done what they want done either. So you bring the Senate to a standstill. We have tried, in the spirit of bipartisanship, to respond. This legislation and all these amendments included are responding to that bipartisanship. You see that effort in the amendments I just listed.
But if it were not overtime, it would be something else to obstruct this bill. It could be the minimum wage; it could be trade adjustment assistance for services; it could be some kind of health care issue-- anything to block the jobs in manufacturing bill at the very same time people on the other side of the aisle are complaining because we are not doing enough to stop outsourcing. This bill will help do that.
It is all about the Democratic leadership keeping the European Union sanctions in place to drive down the economy, because if the economy is not very good this fall, they think they have a better chance of electing their people. This is outrageous when you consider the bipartisan history of this jobs in manufacturing bill.
The JOBS bill is a completely bipartisan bill. Construction of the bill began when Senator Baucus was chairman of the Finance Committee in 2002. Senator Baucus and I have always worked with our Finance Committee colleagues on the bipartisan development of this Foreign Sales Corporation/Extraterritorial Income Act repeal and also the international tax reform provisions of this bill.
Let me emphasize, there is not one provision in this JOBS bill that was not agreed to by both Republicans and Democrats. I have already said, every Democrat in the committee--all 10 of them--voted for this bill to be reported out of committee. We have acted in good faith to produce a bill that protects American manufacturing jobs and to make our companies globally competitive--the same thing you hear Senator Kerry speaking about on the campaign trail, about making our corporations competitive. In fact, he even has a proposal that would reduce corporate taxes the same way we do.
Let's get on with the business at hand and finish this bill; vote for cloture tomorrow, stop debate, put this bipartisan jobs in manufacturing bill ahead of partisan politics. Then we can show the people of this country that the adults are in charge of the Senate, and we can get the JOBS bill--creating jobs in manufacturing--out of the Senate and eventually to the President.
I yield the floor.
Mr. President, I rise to continue to speak about the Foreign Sales Corporation Extraterritorial Income Act that is before Congress that we call the JOBS and manufacturing act. I wish to bring the Senate up to date on the status of this not just as a jobs bill but as a major economic policy legislation.
This, of course, is bipartisan legislation. This is legislation that was designed to respond to the World Trade Organization's adverse ruling on a benefit under the old law for U.S. exporters and to bring our law into conformity with that World Trade Organization ruling, but to do it in a way that
actually creates jobs in America and emphasizes domestic manufacturing so American manufacturers are going to benefit from this legislation on what they do in the United States, not what they do overseas.
Foreign corporations that come into the United States are going to benefit under this legislation as long as they set up plants and manufacture in the United States. This bill has an acronym, J-O-B-S, and it is truly jobs-creating legislation.
We have problems with this now because some people who even support this legislation want to stall it so they can use it as a vehicle for getting some of their pet projects through the Senate. When everybody is saying, and rightly so, that we have not created enough jobs in manufacturing and we have a bill before the Senate that will do it, I do not know why anybody would want to hold this bill up, but there is a playing of politics and, in my view, then when one plays politics, the people's business is neglected.
First, there is a lot in this bill on which we all agree: The tax benefit I refer to is the foreign sales corporation extraterritorial income benefit. That benefit provides a roughly 5-percent corporate rate tax cut for U.S. exporters of manufactured products.
As everyone knows, there is a disturbing economic statistic about U.S. manufacturing and that was that there was a downturn in the manufacturing index starting March of 2000. I emphasize that because everybody thinks this recession started under President Bush, but if one looks at the manufacturing index, they would find the manufacturing index started to turn down March of 2000. It just now has bottomed out and it is just now that it looks as if there is going to be an increase in hiring in manufacturing.
Fortunately, with the tax relief in place in this bill and with other stimulative measures that have been passed last year, manufacturing has come back. Unfortunately, manufacturing employment has not come back to previous levels, and that is what this bill deals with. Both sides, meaning both Democrat and Republican, agree there is a problem with the loss of manufacturing jobs. Both sides also agree that the loss of this previous benefit will result in a tax increase on U.S. manufacturers. Following the simple rules of Economics 101, if something is taxed higher, there is less of it.
There is some dissent on my side of the aisle, the Republican side, which I want to mention so that I am candid in not everybody who opposes this bill is on the Democrat side.
We have Senator Kyl and Senator Nickles, as an example. They are Republicans. They question the wisdom of the current law benefit.
I was also surprised to hear last week that one Member from the other side--quite a liberal Member, as a matter of fact--in effect agreed with Senator Kyl and Senator Nickles. That Member questioned the wisdom of the foundation of this bill--the tax deduction for domestic manufacturers. That Member took to task, as he said, the authors of the legislation.
I wonder if that Member bothered to check to see the authors were also Republicans and Democrats on the Senate Finance Committee. In fact, every member of the Senate Finance Committee who is a Democrat voted for this bill to come out of committee.
In any event, with the exceptions noted--meaning one Democrat plus Senator Kyl and Senator Nickles, also--there is general agreement on both sides that we need to replace current law with a manufacturing benefit which will agree with the General Agreement on Tariffs and Trade, the international agreement that decides the rules of trade.
Conversely, I have not heard anyone say it is wise to sit idly by while our exports get hit with tariffs put on our products in a legal way by Europe, causing our products to be uncompetitive.
In general, both sides agree we need to deal with this tariff problem. We need to deal with this adverse World Trade Organization ruling. Both sides agree we have a responsibility to remove the tariffs against our exports. But yet there doesn't seem to be agreement it should have been done yesterday. It is OK if it is done down the road in another 6 months when we have another 6 percent tariff put on. At least that appears to me to be the way some people are acting.
If we agree on the problem and on the substance of this bill, why can't the job be done? Why can't this bill get to the President? It appears to me the two sides disagree on the outcome for this bill.
I think dealing with this bill goes to the heart of our responsibility as a Senate. We take an oath to uphold the Constitution. The Constitution provides Senators with a unique power somewhat different than in the House of Representatives. That unique power also carries unique responsibilities. Where there is a compelling public policy problem and there is a consensus around the legislation that solves that problem, it is our responsibility as Senators to do everything in our power to make it happen.
Said another way: If we have a bill before the Senate that is going to pass the Senate 90-10, or by a wider margin than that, and there is an agreement it ought to be done, why doesn't it get done?
We all know the Senate is an institution that renders easily to gridlock and to delay. I suppose we would have to blame our Founding Fathers because they contemplated a Senate where the majority would set the agenda and the minority defines its agenda with amendments and debate. Those powers of delay and obstruction are properly resorted to when the majority is ramming something through on a partisan agenda. There is, however, a reflective responsibility on the part of the minority leadership and its members where the legislative item is a bipartisan product. That seems to me to be a responsibility to be constructive. It is irresponsible then for minority leadership and members of the minority to obstruct a consensus item.
It is the height of irresponsibility to obstruct and delay when the item is a bipartisan compelling matter such as this bill is. It is simple. Is the United States going to abide by international agreements we have already approved in this Senate?
It is our responsibility to set an example for the rest of the world because we are outstanding in exemplifying the rule of law and the protection of individual freedoms. Some people might say we ought to give that notoriety to England because our law comes from England. But I think you would all agree when it comes to individual freedom we have even advanced beyond England.
Are we going to have a constructive approach to this legislation? I have to say to my fellow Senators: It is in our hands. Either we can continue to play these political games or we can do the job we were elected to do.
Some have said something such as we will take a limited time on amendments. That misses the point. The point is the majority is led by Senator Frist. We have all played this game straight. The majority amendments to this bill have improved the bill in ways that will get even more votes for it. All those amendments we have offered have been bipartisan.
For example, the Hatch-Murray amendment on research and development credit and the Bunning-Stabenow amendment on accelerating the manufacturing deduction--you recognize those Senators' names immediately and know there is one Democrat and one Republican. That is the way things get done in the Senate.
The Democratic leadership has taken this bipartisan bill and turned it into a political football.
We have an amendment on overtime that was previously voted on and that is a sticking point.
There are other showstoppers planned by the Democratic leadership. In this case, you have one side--the majority--using the power of setting the agenda in a constructive way. I define that constructive way as bipartisan because nothing gets done in the Senate that is not bipartisan.
Then you have the other side--the Democratic side--using its power of amendments and the power of delay solely for politically destructive purposes.
That imbalance can't last for long. If it does last for long, the Senate is brought to a halt. It is kind of like the law of physics. For every action there is a reaction.
There shouldn't be this kind of tension on a must-do--in other words, a
must-pass--bipartisan bill. When it is this way on a must-pass bipartisan bill, something is out of whack. Republicans will eventually be fed up with the gamesmanship on the other side. It will mean the Republican political amendments--those which the Democrats do not like--are going to be brought up because for every action there is a reaction. That is going to lead to a vicious circle and this bipartisan bill will be more bogged down than it is presently.
Another route Republicans could take is to switch to an agenda item that is not like this one. It would be a bill that has heavy political overtones. It would not be as compelling as this bill. It probably wouldn't necessarily be a must-pass bill.
Again, if we were to do that, the victim would be this very good must-pass bipartisan bill.
From the Republican side, let me say to every Democrat, we don't want to go that way. We will do everything we can to avoid going that way.
Maybe the Democratic leadership thinks a designed plan to deter us from taking care of the people's business is good politics. Blame the Republicans, they may be thinking. They may be thinking: We have a liberal press, we can get away with it. They will protect us. They do all the time, anyway. It is kind of an encouragement. Maybe they think it is more important than actually helping the workers which this bill will help; and the U.S. businesses that are at risk because of this Euro tax; in other words, the European tariff on our products going from the United States to Europe.
It isn't that simple. There will be accountability. There has always been in the case of cloture votes. We don't want to go the route of a cloture vote. None of us want to go there again. But we could go there again. There is a petition on file. The American people expect us to do our jobs and not play politics.
I have talked about our responsibility as Senators. Let me put it in the context in my role as chairman of the Senate Finance Committee. Thanks to the good people of Iowa, I have seniority to chair the oldest standing committee in the Senate, the Finance Committee. I am pleased to work with my friend, our ranking Democratic member, Senator Baucus. Not to toot our horns too much, but I am proud of our committee. We respond to big, tough issues in a businesslike, professional manner. We do not always agree, but most of the time we do agree.
From my view, this foreign sales corporation replacement bill has been handled in the best bipartisan tradition of our Finance Committee. Senator Baucus and I developed this bill as partners. All Democrats, even Senators Daschle and Kerry, participated in and supported this bill out of the Finance Committee. They are Members of this committee. All of the amendments I put up for this bill have been bipartisan amendments. They are amendments that have improved the bill.
Who can argue with the domestic job benefit extended by the research and development credit? That was a bipartisan bill. Who can argue with enhancing the manufacturing deduction? That was a bipartisan amendment. Democratic Members were accommodated in the committee and on the floor with a managers' package. Senator Baucus and I developed that package shoulder to shoulder.
The latest version includes the bipartisan package of energy tax incentives approved by the Senate Finance Committee last year for farmers in the Midwest, the South, timber harvesters in the Northwest, or wind farms across the country. This package is going to produce and create jobs. This package has twice passed the Senate without dissent.
For all the Senators from my region and other places who said they could not support cloture on the Energy bill last winter because of the MTBE issue, here is your chance to vote for an energy bill that does not have anything to do with MTBE. Members do not have to worry about your personal injury lawyer friends calling upon you to fight the MTBE thing because they want to protect their own income. Members do not have to worry about offending them. That is not in this bill. Members got a chance to vote an energy bill they wanted.
This maneuvering bothers me. So I brought along a chart that draws from a favorite activity in the Midwest. I am talking about a game of football. The gridiron does not necessarily have anything to do with the gridlock that is occurring on this bill, but it illustrates the problems we have.
This JOBS bill is very near the Senate goalline. Unfortunately, politics is driving the Democratic leadership to move the goalposts. When we came into session in January, Senator Frist was criticized by the Democratic leadership for not moving to the JOBS bill right away. At that time, the goalpost was very clear, very close, right there where it always is on the football field. That was in January.
After we finished the highway bill and a couple of other things, Senator Frist attempted to move the jobs in manufacturing bill. Much to my surprise, we were ambushed by the Democratic leadership with unrelated amendments. I thought I had an understanding as floor manager. That understanding was we were going to do amendments first that were related to the bill and then move to other amendments. That agreement was not carried out.
From my standpoint, this was an unfortunate event. In budget discussions, I made clear I opposed putting this JOBS bill in the reconciliation package because I had assurances that the Democratic leadership wanted the bill passed. In fact, my ranking Member, Senator Baucus, 2 days before Republicans went to Philadelphia for our retreat in January to make our plans for this year, told me. I want to move this JOBS bill; do not let the Republicans include this JOBS bill in the reconciliation because reconciliation is obnoxious to the bipartisanship of the Senate. It is obnoxious to the minority.
When we were making our plans in Philadelphia, my colleagues responded to that request from my Democrat ranking Member and we did not include this bill in the process of reconciliation. It happens that my view was not shared by the House leadership or even by the Senate leadership or by the White House. I took the position in leadership meetings and in the Senate Budget Committee Republican caucus deliberations that the Democratic leadership would not politicize this bill; we would get it passed.
I was ambushed on March 3rd. In fact, it looks like I was wrong and others were right.
So we have a second goalpost here. It was the amendment of my colleague from Iowa on overtime. It did not matter that we had voted on that amendment previously. It did not matter that the amendment dealt with proposed--not final, proposed--Department of Labor regulations. No, none of that mattered. That amendment was and still is a showstopper to this bipartisan bill that everyone agrees ought to pass the Senate. When it comes to a final vote, it will pass overwhelmingly.
We are now at that second goalpost. The demands of the Democratic leadership still change. We were talking about a single-digit list of amendments. Not anymore. Now that it looks like an overtime vote may be in the picture, there is a goalpost yet farther away. For the first time, we are hearing of other amendments not even in the jurisdiction of the Finance Committee, such as an increase in the minimum wage, another showstopper. We cannot finish the bill, we are told, even though we are told the substance is great. This is the greatest bill since sliced bread is the opinion of people all over the Senate. But we cannot finish the bill because of this new goalpost.
Heaven help us how that might turn out.
There is a final goalpost out there. It is way, way out there, as you can see. It is getting to conference. We may move through all of these goalposts but then be blocked from going to conference because the Democrats have decided they should never agree to go to conference on a bill unless they can dictate the outcome. Effectively, that does not just shut down the Senate; that shuts down the whole Congress.
Now, let me ask you: Is this any way to legislate? Is this a proper exercise of leadership? Is this right when jobs are on the line and people back home expect us to move consensus legislation? You have to wonder: Is all this obstruction really worth it?
Now, my sense is, the political imperative of stopping this bipartisan bill is
very strong. It seems the Democratic leadership is so fearful or resistant to getting a bipartisan JOBS bill to the President's desk that they are going to do anything to block it. Just keep moving the goalposts; pretty soon you will not see them. I think the record reflects this view I have that somehow there can be no JOBS bill that gets to the President of the United States.
Now, do you know what I would be willing to do? If there is something with the title of this bill, called a JOBS bill, that is obnoxious to the minority, because it might make a Republican President look good, well, I will change the name of it. You guys name this bill. It is OK with me. The title has nothing to do with the substance of it in the sense of legislative dominance, but we try to say, in the title of a bill, what we are intending to accomplish. What we are intending to accomplish in this jobs in manufacturing bill is to stop this outsourcing that you hear so much about, to create jobs in manufacturing in America, and not just jobs but good jobs, because manufacturing jobs that are related to exports pay 15 percent above the national average. They are good jobs.
I have predicted they cannot let this bill get to the President of the United States for political reasons. I hope I am proven wrong in the next few days. But I can say this: It is time to get the job done. In a few days, I hope we can move back and pass this jobs in manufacturing legislation. It is, in fact, a bipartisan piece of legislation. It is, in fact, a piece of legislation that deserves better treatment than it has received so far.
So tomorrow I hope, for all these reasons, particularly the reasons I gave earlier this afternoon--that there are so many amendments that have been added to this bill at the request of Democrats and Republicans alike, but I emphasize the Democrats--they have something in this bill they have asked for. They have asked for me to consider it. If they do not vote to stop debate tomorrow, to move on this legislation, get it to the President, why did they come to me in the first place and ask me to put their favorite piece of legislation in this bill?
It is all good legislation. I do not find fault with the people who have asked me to do it. It is all good public policy. But, also, it was not something real pertinent to the primary purpose of this legislation. But we are helping them get their bill passed by cooperating with them. I would like a little cooperation in return. I would like to have all the Members who we have tried to accommodate-- both Republican and Democrat--vote to stop debate and move on to final passage of this bill, so we can create jobs in manufacturing.
I yield the floor and suggest the absence of a quorum.
Mr. President, I appreciate the chairman's comments on the need to move this legislation forward. Mr. President, let me just inquire in terms of parliamentary procedure, are we open for general…
Mr. President, I appreciate the chairman's comments on the need to move this legislation forward.
Mr. President, let me just inquire in terms of parliamentary procedure, are we open for general debate?
Thank you, Mr. President.
I did come to the floor last week and speak to the need to move this very important jobs growth, FSC/ETI issue and not have a filibuster and complete our work. If we do not, we are going to see that we are going to be hit by a continuing increase in fines by the European Union because we are not complying with the World Trade Organization ruling of over a year ago.
I also said we stand to benefit from the tax proposals in this legislation, and I urged that we complete this work. In fact, I said we have no alternative but to complete this work. I am glad the leadership is going to continue to push this issue because we must get it done.
I do want to say now that I understand that perhaps a decision was made to attach tax provisions from the Energy bill to this bill, and I think that was a mistake. I am going to have to review what that means in terms of my own vote. Instead of helping move this legislation, and other legislation, it may have complicated both of them. But I hope we can find a way to get this done.
Mr. President, the reason I came to the floor this afternoon, though, was to speak in support of S. 2207, the Pregnancy and Trauma Care Access Protection Act of 2004. We have a health care crisis in America. Health care is becoming more and more difficult to obtain, to afford, and to be assured that it is the quality that you might need. In rural States such as mine and Senator Grassley's State of Iowa, the
issues of access and distance, or being able to get trauma care or care from obstetricians and gynecologists, present real problems.
I also think we have to acknowledge that the cost is becoming more and more difficult and more and more prohibitive. The cost of health care insurance continues to go up. The cost of medical liability insurance continues to go up. When you talk to trauma emergency care doctors, when you talk to OB/GYNs, they are paying $85,000, $100,000, $125,000 for medical liability coverage. How much will it be? There is no limit?
There is no question, in my mind, many of these doctors are now practicing what we would describe as defensive medicine. They are prescribing additional procedures. They are taking extra precautions to make sure they do not get sued. That, by the way, continues to drive up the cost of health care. So it has become a big problem in this country.
Escalating jury awards and the high cost of defending lawsuits, even the frivolous ones, are increasing medical liability premiums nationwide, and they are having devastating effects on the health care of millions of Americans. Medical specialists, including neurosurgeons, obstetricians, and emergency physicians, are being forced to cut services, retire early, or move their practices to other States.
This past Saturday night, I was in Augusta, GA, for an event for Congressman Norwood, a Congressman who has been very much involved in patients' rights and health care issues. I was informed that one of the neurosurgeons in Augusta recently moved from my State of Mississippi. It is not an isolated incident. It is a pattern. Augusta has several neurosurgeons. Mississippi has a declining number, even in places where they are needed to provide trauma care services in larger metropolitan areas.
Nineteen States are in full-blown medical liability crisis now, and 25 States are showing signs of crisis. Only 6 States are considered stable, each of which has instituted reforms.
Ninety-eight percent of osteopathic students acknowledged in a recent survey that medical liability issues will influence their future career decisions. Seventy-three percent say medical liability issues will ``significantly'' influence their decisions--in other words, where they practice, whether they practice, and what kind of medicine they practice.
Medical liability costs the Federal Government well over $50 billion per year. The source of that information is the Department of Health and Human Services. I have heard the discussions over the years: Well, you guys from Mississippi, and other similar States, have always talked about the States should deal with these issues. This is a States rights issue. It is a State problem.
Let me tell you what: When it costs the Federal Treasury $50 billion, this is a national problem. This is not just a problem in Mississippi, Alabama, Arkansas, or Iowa; it is a nationwide problem. Very few States--even those that have passed medical liability reforms--have been able to stem this tide of abuse and costs that are really causing difficulties in a number of States and in the health care of this country. So we have to do something.
Here we are in the Senate with this crisis looming out there that affects children, babies, mothers, elderly, emergency care needs; all of them have been held up while the Senate cannot even proceed to debate the legislation. That is what we have here, the motion to proceed. That is indefensible. How could we not at least take this issue up and have a full discussion about its dire consequences?
Let's talk a little bit about what the bill does. This is not something that just popped out of a committee or hasn't been thought through clearly. This issue has been pending for a long time. Some of the legitimate concerns have been addressed.
The bill provides reasonable guidelines to govern liability claims related to the provision of obstetrical, gynecological, emergency and trauma care goods and services. I want to emphasize, this is a limited bill. This is not all medical professions. This is targeted to those people who treat us when we are in the greatest need of health care, when we are going into an emergency room or a trauma facility as a result of an automobile accident, or doctors who deliver and look after our children and the mothers of those children. Can we not at least provide some medical liability reform and protection there so we can keep these doctors in the practice?
More and more in my State and all across the country doctors who have in the past practiced obstetrical and gynecological work are dropping the obstetrician part because they are being sued. The insurance is becoming prohibitively expensive in terms of the cost it is putting on these doctors.
The bill sets a statute of limitation of 3 years after the date of manifestation of an injury or 1 year after the claimant discovers or should have discovered the injury. That is reasonable. You can't say 5 years later: I had a problem back there. It says you have to exercise your right within 3 years or 1 year after you discovered it.
It allows recovery of unlimited economic damages, but it limits noneconomic pain and suffering damages to $250,000. This is obviously a place where some restraint needs to be employed. This is where certain juries in certain counties in certain States, mine included, have been rendering multimillion dollar decisions for pain and suffering. I think some reasonable limits there clearly would be appropriate.
This bill allows the court to restrict the payment of attorney contingency fees by applying a percentage scale based on the amount of the judgment. These lawsuits should not be about attorneys' fees. The lawsuits should be about medical costs and medical liability. What is a reasonable recovery when you do in fact have some legitimate claims?
Don't get me wrong. I do think in the American system of jurisprudence, you have a right to take your grievance to court. I would defend that. I am an attorney. But I do think the system is being abused, and it has become more about attorneys' fees than it has the injuries that were incurred.
The bill sets out qualifications for expert witnesses. Again, that is an area where there have been some abuses I am personally familiar with. It permits courts to reduce damages received by the amount of collateral source benefits to which a claimant is entitled; in other words, money paid by another entity such as a health insurance provider.
It authorizes the award of punitive damages only where a high standard is met of clear and convincing evidence that a defendant acted with malicious intent to injure or deliberately failed to prevent injury that was certain to occur.
This is very good legislation. It is targeted. It is limited in the impact it would have on restricting the coverage, but also it is limited to these particular areas of specialty I have noted.
Let me go to my own State of Mississippi, since our State is really being adversely affected by these medical liability cases. It is one of those States which has been described as a judicial hellhole. I don't like to hear that. When various entities identify my State in that sort of way, I resent it. Even if they are right, I don't like to hear it. But there is no question we have had lots of problems in my State of Mississippi. We have had a tremendous explosion of lawsuits in this health care area, very large verdicts. Physicians who are practicing in Louisiana, Mississippi, Texas, and West Virginia can clearly demonstrate how medical lawsuits have hurt our health care system. The doctors will tell you about that.
A recent survey that was done by the American Tort Reform Association, in cooperation with other groups such as the Mississippi State Medical Association, points out 84 percent of the physicians surveyed report they are very concerned about the effect of medical litigation on the practice of medicine. Eighty-one percent report they have changed the way they practice medicine because of litigation concerns. That means more cost. That is what I was referring to at the beginning. They have been requiring and prescribing more and more procedures to protect themselves against these lawsuits. And by the way, in many instances, the procedures are not necessary and not required medically. They are required to defend yourself against a frivolous lawsuit.
Eighty-six percent of the physicians believe states with a liability crisis like Mississippi increase medical malpractice insurance costs. And the list goes on. There is no question it is creating a real problem.
Again, specifics: Half of my State's 82 counties now have fewer physicians to treat patients than were available in 2001. Mississippi has fewer physicians per capita than 48 other States. So when we lose a physician, it really hurts because we already are in dire straits. In 16 Mississippi counties, the numbers of physicians remained unchanged from 2000 to 2002, but the population in those counties increased during the same period. The population growth in 62 percent of Mississippi counties outpaced a stagnant or decreasing base of physicians to treat those patients. The source of this information is the Mississippi State Medical Association.
Approximately 100 doctors have left or plan to leave the State of Mississippi. The source of that information is a Time magazine article of June 9, 2003.
Mississippi had a net loss of 73 physicians in 2002. The number of physicians licensed in the State in 2001 was 5,710. But in 2002, this number had dropped to 5,637. Since the population is increasing, since we have certain areas of the State that have experienced tremendous growth, you would think we would be increasing the number of physicians per capita. The numbers are going in the wrong direction.
I ask unanimous consent that other statistics I have about what is happening in my own State be printed in the Record.
I want to make this point. We used to have several, then we had three, now we have one insurance company that is providing medical liability insurance in my State of Mississippi. This is a problem that is of great concern to leaders in the State of both parties, in the medical profession, in the business world, and those of us who are trying desperately to advance the State economically and have had some success bringing major industries into the State. While a major industry may want to know, do you have a good interstate system, do you have international airports, good schools, can you provide affordable housing, they don't always immediately ask about the accessibility of hospitals and do you have the doctors who are needed, but that is a question that eventually they come to. It is one that will affect us in the future if we don't do something about it.
Let me tell you what it means when you don't have the doctors you need. I want to give some specific examples.
Tony Dyess of Vicksburg, MS, received serious head injuries in a car accident on July 5, 2002. Since a specialist in brain injuries, or neurosurgery services, was not available in Gulfport, MS, he had to be airlifted to another hospital which led to Tony having permanent brain damage and no longer having the ability to care for himself or to have a job. The source of that is the American Medical News, May 26, 2003.
Fortunately for Elmoe Kee III of Woodville, the withdrawal of insurance coverage by St. Paul malpractice insurance provider from the State of Mississippi did not occur before he was attacked by a bank robber in a small rural county at Wilkinson County Savings Bank where he served as president. He would have most certainly died if he had not been able to get doctors to treat him almost immediately at Catchings Clinic in Woodville, MS. With the withdrawal of St. Paul as a malpractice provider, seven of the eight doctors in the area, including those at Catchings Clinic, Field Clinic in Centreville, and Gloster Clinic were left without a malpractice insurance provider beginning on June 30, 2002. The source of this information is the Jackson Clarion- Ledger of June 27, 2002.
On April 18, 2003, John Fair Lucas IV of Greenwood received a severe head injury due to a one-person car accident. Since the Delta Regional Medical Center no longer has around-the-clock neurosurgery services because of the impact of the medical malpractice insurance crisis and the loss of that coverage, John had to be airlifted to Jackson, losing valuable time because the distance from that area of Greenwood, MS, down to Jackson is about a 2-hour drive, or certainly a 30-minute helicopter ride, and he lost valuable time for the surgical procedure needed to reduce pressure on the brain. Sadly, John passed away on May 28, 2003. The source for that is the Greenwood Commonwealth newspaper, April 25, 2003.
``Jill Mahaffey says she got lucky. She and her husband are here, they live in the Delta, too. She got lucky. She heard she's pregnant. She's getting there, getting ready. She goes to the doctor, he says, I've got to leave--OB/GYN getting ready to leave because of lawsuits, because of the threats. Because even if you're a doctor who practices good medicine, you're going to get sued in this State and in other States. Believe this or not, fortunately, she was getting toxic and the doc induced labor before he quit his practice. She says she was lucky. And she was.'' This is a quote from President Bush's address to Madison High School in Madison, MS August 7, 2002.
Amber Peterson's obstetrician in Cleveland, Mississippi stopped practicing 3 weeks before her due date, and she had to drive out of State, over a hundred miles, to Memphis, Tennessee, to get the care she needed. The source of this information is the U.S. Department of Health and Human Services, from a report dated July 24, 2002.
Marine Hawkins, 20, of Boyle, Mississippi, was shocked to hear from her obstetrician that he was closing his practice--just 2 weeks before her due date of July 21. The nearest doctor is 30 minutes away. She doesn't have a car and will have to rely on relatives to get there. ``This isn't what I needed now,'' she said. The source of this information is the Houston Chronicle, July 20, 2002.
In February 2003, Sharkey-Issaquena Community Hospital in Rolling Fork,
MS saw its insurance premiums rise from $163,000 to $223,000. Because of this rise, the hospital was forced to close its doors for 3 weeks while the hospital looked for an alternative insurance policy after being discontinued by its previous insurer. During these 3 weeks, Sharkey-Issaquena had to contract paramedics to treat patients while they were being transported by ambulance to the closest hospital. The source of this information is the American Medical News May 26, 2003.
In 2002, 10 physicians left Greenwood Leflore Hospital because of the State's problems with medical liability insurance. Also during 2002, the hospital's liability insurance premium increased from $150,000 per year to $1.3 million. The source of this information is The Greenwood Commonwealth, June 26, 2003.
On Sept. 30, 2002, officials at Forest General Hospital announced they are eliminating nearly 300 positions--200 of which were already vacant--to save an estimated $7.6 million in the new fiscal budget. Citing causative factors that prompted the cuts, hospital president Bill Oliver stated that Forrest General was hit last year with a dramatic increase--about $4 million--in medical malpractice insurance. The source of this information is the Hattiesburg American Oct. 2, 2002.
Mr. President, let me talk a little about exactly what is happening with the doctors in my State.
In February 2003, 14 doctors in the Oxford area in various medical fields were left without malpractice insurance and were forced to close their doors because their insurer, Doctors Insurance Reciprocal, went into receivership on February 13. Doctors are slowly, surely leaving the area to go to bigger areas, or even to other States.
I was in my hometown area, Pascagoula and Moss Point, MS, on the Gulf Coast, and met a new impressive doctor in the community. He was also involved in the trauma unit because he was an orthopedic surgeon. He moved to Mississippi from the State of Missouri. He is an African- American doctor. He was doing a great job. He told me because of the insurance coverage situation, even though his family wanted to stay on the Mississippi Gulf Coast, it looked as if they might have to return to Missouri. Other doctors have been either leaving the State or getting out of the practice of obstetrics.
In the case of Dr. Don Gaddy, as well as four other obstetricians and three nurse-midwives, they filed notice to take a 1-year leave of absence from Memorial Hospital at Gulfport, MS, because of extreme increases in medical malpractice insurance coverage. The source of this information is the Biloxi Sun-Herald, April 18, 2003.
Dr. Gregory Patton, an OB-GYN with the Oxford Obstetrics and Gynecology Associates PA in Oxford MS, reports that his malpractice insurance premiums have gone up 60 percent--with each doctor paying $67,000. The source of this information is The Daily Mississippian June 10, 2003.
Drs. Blackwood and Baugh's temporary departure left no OBs in Cleveland for about 10 days. Only one family physician continues to deliver babies at the local hospital. But the malpractice insurance providers that are protecting them are only ``Band-Aid insurance.'' The source of this information is American Medical News Sept. 9, 2002.
Dr. Kurt Kooyer left the small town of Rolling Fork after getting fed up with lawyers filing suit against him without even the patients' knowledge that they were filing suit against their physician. Dr. Kooyer was the only pediatrician among three physicians in town who lowered the infant mortality rate from an average of 10 deaths per 1,000 live births to 3.34 deaths per 1,000. Dr. Kooyer now lives in North Dakota. The source of this information is The Clarion-Ledger Aug. 23, 2002.
``Dr. Frothingham, you talk about a man with heart. You think Kooyer has a heart? Wait until you hear Frothingham. He's a great Mississippian; grew up here; thought he might try to live in South Carolina, realized what he was missing, came back to Mississippi. He's a neurosurgeon. He talked with deep compassion about a man who suffered a trauma, a fellow he was with--Johnny was with us today. He's a guy who understands that practicing medicine is more than just technology. It's concern and care. They're running him out of business. There's too many frivolous lawsuits. And that hurts the state and it hurts the country. It hurts the people.'' This quote is from President Bush's address to Madison High School in Madison, MS, August 7, 2002.
On July 15, 2003, Drs. Derveloy and Gilmore, the only two heart surgeons in Oxford, are closing their practice. They contribute their relocation to a shortage of key elements: facilities, cardiologists, affordable medical malpractice insurance and regional referrals. Dr. Derverloy is joining an existing group off heart surgeons who are practicing in Tupelo, and Dr. Gilmore recently accepted an offer to set up a heart surgery program in Decatur, Ala. The source of this information is The Oxford Eagle June 8, 2003.
Also in Oxford, the two cardiologists with the Oxford Heart Clinic, Dr. Nelson Little and Dr. Timothy Wright, are merging their practices with a Tupelo office, but will keep their local office open, which followed the loss of Oxford's only two heart surgeons, Drs. Derveloy and Gilmore. The source of my information is The Oxford Eagle, June 8, 2003.
Five doctors at the Family Practice/After Hours Clinic on U.S. 98 West have posted a sign on their doors informing patients that no appointments are being scheduled for 2003. The physicians are also filling out applications for licensing in Alabama and Louisiana. The doctors explain the possible departure from Mississippi by the clinic's malpractice insurer informing them recently that their premiums will increase 45 percent on Jan. 1, 2003. The source of my information is the Hattiesburg American, Oct. 2, 2003.
OB/GYN Mark Blackwood of Cleveland has seen his practice load nearly double since three physicians quit delivering babies in the area. His insurance lapsed in July, forcing him to close his clinic for ten days leaving dozens of patients without a physician to deliver their babies. He and his partner have seen an increase in the number of suits filed against them since the new legislation passed. The source of this information is the Mississippi State Medical Association Dec. 1, 2002.
Radiologist Ken Duff was able to get coverage less than twenty-four hours before his old policy expired. He and his eleven partners cover two hospitals in Hattiesburg, facilities ion Columbia, Collins and Tylertown, as well as two large outpatient facilities. Without diagnostic radiology services patients have to wait longer to get test results, and other physicians will have to find new specialists to consult. The group desperately needs new recruits to cover demand. The source of this information is the Mississippi State Medical Association, Dec. 1, 2002.
General Surgeon Brian Anthony of Bay St. Louis practices more defensive medicine and no longer does vascular work. He plans to retire 10 years early because of the litigious environment. He says other physicians often consult him in order to document their cases and to reduce their exposure. He and the remaining surgeon in the area are considering whether they will continue to provide trauma services. The source of this information is the Mississippi State Medical Association Dec. 1, 2002.
Neurosurgeon Terry Smith has not had a vacation in five years because there is not enough neurosurgery coverage to take care of his patients. He is one of only three neurosurgeons covering trauma cases for seven hospitals on the Gulf Coast. When he lost his insurance in August 2002 he had to go on staff with a hospital in order to continue to practice in the area. The source of this information is the Mississippi State Medical Association, Dec. 1, 2002.
Otolaryngologist Gene Hesdorffer of Hinds County had to close his practice on December 31 and was forced into full-retirement because he could no longer afford insurance. His insurance carrier informed him they were doubling his rates despite the fact that he has never been sued. The source of this information is the Mississippi State Medical Association, Dec. 1, 2002.
OB/GYN Al Diaz of Ocean Springs has insurance until December 2002. He has lived on the Coast for 20 years but is now looking at practice in Mobile, Alabama, and Slidell, Louisiana. Both his son and daughter-in- law are training in Louisiana but will not return to practice in Mississippi. The entire group of
four OB/GYNs just renovated their clinic in Ocean Springs and opened an office in Biloxi when they were told their insurance carrier would no longer be doing business in the State. The source of this information is the Mississippi State Medical Association, Dec. 1, 2002.
Surgeon Cecil Johnson of Lauderdale County plans to retire soon. Until then he will continue to order more tests, x-rays and consultations in order to back up diagnoses. He also plans to drop vascular surgery in hopes that he will be able to find more affordable insurance. The source of this information is the Mississippi State Medical Association, Dec. 1, 2002.
Internist Bob Lewis of Wilkinson County spent a week treating patients at the local emergency room while his clinic was closed. The group could not find coverage and the only quote they could get was $355,000. The four-man group paid $67,000 last year. Family Practice physician Jennings Owens and his group serve nearly 40,000 patients. He is upset that the hospital had to hire physicians in order to insure them. The source of this information is the Mississippi State Medical Association, Dec. 1, 2002.
ER physician Bob Corken had to find insurance from Lloyd's of London for this ER group which services a hospital in Washington County and three others in the Delta and Central Mississippi. Corken found insurance at the eleventh hour in order to avoid work stoppages and temporary closure of at least one emergency room. The source of this information is the Mississippi State Medical Association, Dec. 1, 2002.
Orthopaedic Surgeon Alan Swayze, MD of McComb took on more patients last year than ever before--partly because there are few orthopaedic surgeons in the area. Now he is leaving Mississippi and opening a practice in Georgia because his liability insurance to practice in Mississippi skyrocketed to $125,000 per year. His premium in Georgia will be $14,000 annually. The hospital administrator in McComb said the prospects of recruiting replacement physicians to McComb is ``bleak.'' The source of this information is the Enterprise Journal, June 12, 2003.
In April 2002, State Commissioner George Dale said, ``It's just a matter of time until insurance companies will say they're not going to cover medical providers in Mississippi.'' That time has arrived. Dozens of insurers have either discontinued writing medical malpractice in Mississippi or raised their premiums to such a level that doctors--like those at the Family Practice/After Hour Clinic--are being forced to consider relocating out of state. According to a survey conducted recently by the Rating Division at the Mississippi Insurance Department, 36 companies offered medical malpractice insurance in all categories in 2000. As of Sept. 10, there are only two licensed regulated, companies still providing medical malpractice insurance to physicians and surgeons in Mississippi. The main reason insurance companies give for hiking premiums and/or leaving the state is their concern about Mississippi's civil justice system, which has generated over 100 verdicts of $1 million in the last 6 years. The source of this information is the Hattiesburg American, Oct. 2, 2002.
Fifteen medical malpractice insurers have withdrawn from offering coverage in Mississippi in the past five years. The source of this information is an HHS medical litigation report, March 3, 2003.
``We've had trouble recruiting and had physicians say they are not interested in coming to Mississippi because of the malpractice insurance rates,'' according to Dean Griffin, executive officer of Baptist Memorial-Golden Triangle Hospital. The source of this information is The Associated Press, March 20, 2003.
A poster on the large wooden doors leading into Delta OB/GYN explains it all: ``It is with much regret that we must inform you that our office will be closed effective 7/14/02 until further notice. Due to the current malpractice crisis in the State of Mississippi, our liability insurance has been canceled.'' The source of this information is the American Medical News, Sept. 9, 2002.
Mr. President, I ask unanimous consent that the entire list of physicians who are no longer delivering babies in Mississippi be printed in the Record.
Mr. President, this is not a short list. This is a lengthy list, with probably as many as 40 counties listed. In Adams County, they lost three physicians who had been delivering babies. Attala County, in the center of the State, lost four family practice physicians who had been doing deliveries; they got out of the practice. In Harrison County, one of our more metropolitan areas on the Gulf Coast, three doctors got out of delivering babies. The list goes on and on.
Pretty soon it is going to be hard to have a baby delivered in my State. That causes me a great deal of concern.
Mr. President, I hope we can get the votes tomorrow to proceed on this issue and have a full debate and a vote. This is not some massive tort reform, although I think we need it. I hope we will later visit the issue of class action reform.
This is very targeted legislation that will address a serious problem in many States--the majority of States across this country, where we are losing the services of these physicians in these critical areas. I would hate to have to explain to my State how I would not even vote to proceed, let alone not vote to have some limits on medical liability for doctors who deliver babies and treat their mothers and who care for us when we have accidents and go to the emergency room.
I think this is very carefully drafted legislation, very thoughtful. I certainly hope the Senate will see fit to proceed to a full debate and vote on this critical legislation.
I yield the floor.
Mr. President, it is remarkable that in 29 years here in the Senate--several times the Senate under the control of Democrats, several times the Senate under the control of Republicans--I have never…
Mr. President, it is remarkable that in 29 years here in the Senate--several times the Senate under the control of Democrats, several times the Senate under the control of Republicans--I have never seen so little accomplished and I have never seen so much political posturing on the Senate floor which then gets put into fundraising letters and fundraising appeals. I have never seen so much special interest legislation. But the bottom line is I have never seen so little accomplished. Probably there is a corollary.
Instead of doing the people's business, we seem to be doing political action committee business. And that is why, of course, nothing gets done.
Let's talk about this. If there were ever a piece of legislation on which politics is being played, it is the medical malpractice bill. It is a one-size-fits-all bill for a problem that is really different from State to State. Basically we are telling the 50 State legislatures and Governors that the Members of the U.S. Senate know a lot more about their States' needs than they do and that the U.S. Senate will dictate a change. We will override their courts and their legislatures. We will override their laws and we will make life better for them. But when we do, of course, we yank away the rights of the States and the people there. Whenever we target the rights of the public and we try to figure out ways to run roughshod over a State, we ought to be pretty careful how we do it.
Normally you would think we would have committee hearings. We would try to have a bipartisan bill. We would have something that would demonstrate to the States, as we take away their rights, that such a move has been considered by all 100 Senators and there is a consensus. Instead, we have a piece of legislation written by lobbyists and special interests that is so bad nobody even dares send it to a committee--not even friendly committees. They send it right to the floor.
This is the third time the Republicans have taken this partisan approach. Last July they employed this partisan tactic and failed to pass legislation. Earlier this year, they tried to rush through the Senate a bill to limit the legal rights of the most vulnerable patients--mothers and infants--and they failed. Now they are again rushing an extreme bill overriding the laws of each of the 50 States. This time, however, the bill is not limited to obstetrical and gynecological care. Now they want to extend the restrictions on legal rights to trauma and emergency care. The third time for this partisan approach is no charm. Republicans' mad dash to push through this proposal in this election year under the guise of reducing health care costs is a blatant attempt not to reduce health care costs, which we would all support, but to exploit their own political agenda.
I remember the article last year in Washington Monthly, titled ``Malpractice Makes Perfect: How the GOP Milks a Phony Doctors' Insurance Crisis.'' This article was so good, it was nominated for a National Magazine Award. It shows how Republicans launched a sophisticated lobbying campaign with business interests to manipulate the medical malpractice debate and change it from one about medical errors and fair compensation, pitting one political constituency against another.
I commend to my colleagues the article to which I referred from the Washington Monthly of October 1, 2003, by Stephanie Mencimer.
Mr. President, the article points out clearly that even if we passed this legislation, insurance rates would not have come down. There is no one who with a straight face can say that if we pass this legislation, then insurance rates will come down. Insurance companies would not be spending so much money trying to get this passed if they thought so.
Once again, Republicans have proposed a plan that would cap non- economic damages across the Nation at $250,000--whether you live in California, Ohio, Vermont, or anywhere else; no matter what the injury, that is the cap.
The so-called medical malpractice reform debate too often ignores the men, women and children whose lives have been dramatically--and often permanently--altered by medical errors.
I will give you a real-life example in my State of Vermont. On April 7, 2000, Diana Winn Levine had a severe migraine headache. That is something that has probably happened to most of us at one time or another. She went to a health center in Plainfield, VT. She was a musician. She received a painkiller and an injection of a mild sedative, Phenergan. This combination was injected into her artery rather than her vein, and resulting circulatory problems led to this musician having to have two amputation surgeries on her right arm.
Ms. Levine sued the corporate giant, Wyeth, for improper instructions for using its drug, Phenergan. As she said:
I never expected to sue anyone in my life; I'm not the
suing type.
Sometimes it takes something like this to make it known when a drug is not being used right.
There was a full trial. I remember reading the account of the trial. When they went to swear Ms. Levine in for her testimony, the bailiff asked her to raise her right hand. Of course, she had no right hand. That jury in Vermont--and our juries are pretty careful--found that Ms. Levine deserved $2.4 million for her past and future medical expenses, and $5 million for the ``daily pain she does suffer and for the loss of enjoyment of her life.'' Of course, most of that would have been slashed by this legislation. Crowds of the children Ms. Levine had worked with on musical projects--children she'd brought joy to as a musician--sat in the courtroom of the Montpelier Superior Court. She said:
That was the day they actually showed pictures of my dead
hand . . . before amputation, with the gangrene. I worried
about how the kids would react to my disfigurement. I told
the mom to cover her eyes. But afterward she came up to me
and said, ``We just didn't know what you have been through.''
Now, Wyeth, of course, was well represented. They had a team of six lawyers--two from Vermont and four from Washington, DC. They did, after all, have 2003 revenues of $15.8 billion and keep a $1.3 billion reserve fund because of the ongoing litigation over their diet drugs.
Again I say: This musician would have been cut out entirely if the U.S. Senate were to overwrite the laws of our State.
Mr. President, I ask unanimous consent that the article from the Burlington Free Press be printed in the Record.
We know a lot of our health care system is in crisis. We know some of the giants of our health care system would probably like this legislation to go through so they can make higher profits. Much of our health care system is in crisis. That is what we ought to attack.
Dramatically rising medical malpractice insurance rates are forcing some doctors to abandon their practices or to cross State lines to find more affordable situations. Patients who need care in high-risk specialties, such as obstetrics, and patients in areas already underserved by health care providers, such as many rural communities, are too often left without adequate care.
But this bill does nothing to actually reduce medical malpractice insurance rates. Of course, each State has a different experience. Insurance remains largely a State-regulated industry because the States found that is the way it works best. But each State ought to look at and be left to solve their own unique problems. We should not tell their Governors and legislatures we are not going to let them solve their own problems because we will take it over for them.
We don't have the kind of crisis in Vermont that others do. We have worked very well with our legislature, and we are still working hard to find answers, as other States have. You know, it is funny. We hear so many speeches that we want to get power out of Washington. We want States to be able to do what they want. We don't want Washington dictating everything. Well, not exactly. When you get some very wealthy contributors and very powerful PACs and say, Yes, but if you don't let Washington take care of our special interests, nobody will--suddenly it changes.
This is an attempt to tally points on some election year political scoreboard for powerful special interests at the public's expense. I am looking at the big picture.
Some States, such as my own, Vermont, while experiencing problems, do not face as great a crisis as others. Vermont's legislature is considering legislation to find the right answers for our State, and the same process is underway now in other States. In contrast, in States such as West Virginia, Pennsylvania, Florida, and New Jersey, doctors have walked out of work in protest over the exorbitant rates being extracted from them by their insurance carriers.
Instead of letting States find solutions that are best for their citizens, the Republicans prefer this attempt to tally points on some election year political scoreboard for powerful special interests, at the public's expense. Instead of looking at the big picture--at overly broad antitrust immunity, ways to reduce medical errors, and at other real issues that could make a real difference--the majority has chosen to coddle big insurance companies instead of to cure the problem.
Instead of letting the States continue to find solutions that are best for their citizens, they would take a chainsaw to the legal rights of the American people and to the prerogatives of each of the 50 States we represent here in the United States Senate.
Thoughful solutions to the situation will require creative thinking, a genuine effort to rectify the problem, and bipartisan consensus to achieve real reform. Unfortunately, these are not the characteristics of the bill before us. Indeed, S. 2207 is a partisan bill that was introduced only a few days ago without any committee consideration.
Ignoring the central truth of this crisis--that it is a problem in the insurance industry, not the tort system--the
majority has proposed a plan that would cap noneconomic damages across the Nation at $250,000 in medical malpractice cases.
The notion that such a one-size-fits-all scheme is the answer runs counter to the factual experience of the States. Most importantly, the majority's proposal does nothing to protect true victims of medical malpractice and nothing to prevent malpractice in the first place.
We are fortunate in this Nation to have many highly qualified medical professionals, and this is especially true in my own home State of Vermont. Unfortunately, good doctors sometimes make errors. It is also unfortunate that some not-so-good doctors manage to make their way into the health care system as well. While we must do all that we can to support the men and women who commit their professional lives to caring for others, we must also ensure that patients have access to adequate remedies should they receive inadequate care.
High malpractice insurance premiums are not the direct result of malpractice lawsuit verdicts. They are the result of investment decisions by the insurance companies and of business models geared toward ever-increasing profits as well as the cyclical hardening of the liability insurance market. In cases where an insurer has made a bad investment, or has experienced the same disappointments from Wall Street that so many Americans have, it should not be able to recoup its losses from the doctors it insures.
The insurance company should have to bear the burdens of its own business model, just as the other businesses in the economy do. And a nationwide arbitrary capping of awards available to victims--as the majority has proposed again and again--should not be the first and only solution turned to in a tough medical malpractice insurance market.
The problem at hand deserves thoughtful and collaborative consideration in committee to achieve a sensible solution that is fair to patients and that supports our medical professionals in their ability to practice quality health care. One aspect of the insurance industry's business model requires a legislative correction: Its blanket exemption from Federal antitrust laws. Insurers have for years--too many years--enjoyed a benefit that is novel in our marketplace. The McCarran-Ferguson Act permits insurance companies to operate without being subject to most of the Federal antitrust laws, and our Nation's physicians and their patients have been the worse off for it.
Using their exemption, insurers can collude to set rates, resulting in higher premiums than true competition would achieve--and because of this exemption, enforcement officials cannot investigate any such collusion. If Congress is serious about controlling rising premiums, we must objectively limit this overly broad exemption in the McCarran- Ferguson Act.
More than a year ago, I introduced the ``Medical Malpractice Insurance Antitrust Act of 2003,'' S. 352. I want to thank Senators Reid, Kennedy, Durbin, Edwards, Rockefeller, Feingold, Boxer and Corzine for cosponsoring this essential and straightforward legislation.
Our bill modifies the McCarran-Ferguson Act with respect to medical malpractice insurance, and only for the most pernicious antitrust offenses: price fixing, bid rigging, and market allocations. Only those anticompetitive practices that most certainly will affect premiums are addressed. I am hard-pressed to imagine that anyone could object to a prohibition on insurance carriers' fixing prices or dividing territories. After all, the rest of our Nation's industries manage either to abide by these laws or pay the consequences.
Many State insurance commissioners police the industry well within the power they are accorded in their own laws, and some States have antitrust laws of their own that could cover some anticompetitive activities in the insurance industry. Our legislation is a scalpel, not a chainsaw. It would not affect regulation of insurance by State insurance commissioners and other State regulators. But there is no reason to continue, unexamined, a system in which the Federal enforcers are precluded from prosecuting the most harmful antitrust violations just because they are committed by insurance companies.
Our legislation is a carefully tailored solution to one critical aspect of the problem of excessive medical malpractice insurance rates. I had hoped for quick action by the Judiciary Committee and then by the full Senate to ensure that this important step on the road to genuine reform is taken before too much more damage is done to the physicians of this country and to the patients they care for. But our legislation to narrow this loophole in the Nation's anti-trust laws for medical malpractice insurers has languished for more than a year in the Senate Judiciary Committee.
Instead of conducting hearings and a markup on our bill, the majority now rushes a ``tort reform'' agenda item to the floor without any committee consideration.
If Congress is serious about controlling rising medical malpractice insurance premiums, then we must limit the broad exemption to Federal antitrust law and promote real competition in the insurance industry, as well as attack this problem at its core by reducing medical errors across our health care system. Unfortunately, the partisan bill before us is not designed for creating a solution to a serious problem. Instead, it is designed purely for politics, and that is not only a waste of the Senate's time and of the public's trust; it is also a shame.
Overly broad antitrust immunity, which the insurance companies have, allows them to fix prices any way they want, whether it is justifiable or not. Antitrust immunity allows them to take their failed investments and try to make it up by charging doctors higher malpractice insurance. We ought to find ways to reduce medical errors. But the big thing is we end up coddling these insurance companies. We don't call them to task. We don't get them to say whether they are spending out this money on malpractice awards. Of course, they are not. A lot of their losses came because they speculated wrong in the stock market. Suddenly, we have to bail them out. Get rid of their antitrust immunity, something that makes no sense in today's day and age with conglomerates. Make them actually say what they base it on. You will find that they are not beginning to pay out the amounts their malpractice claims say they are.
We are fortunate in this Nation to have so many highly qualified medical professionals. This is especially true in Vermont. But you have to know sometimes good doctors make mistakes, just as sometimes a good engineer will make a mistake. But it is also unfortunate that sometimes not-so-good doctors manage to make their way into the health care system. I think we should do all we can to support the men and women who commit their professional lives to caring for others, but we also ought to have some way of responding when somebody gets highly inadequate medical attention.
When you have a case, as I said before, like the Levine case in Vermont, when you have somebody whose livelihood was playing musical instruments and they lose an arm because Wyeth Pharmaceuticals made a mistake, then there should be some way to respond. Under this legislation, they would not be able to.
The bottom line is, we have a piece of legislation that is designed to be introduced not to improve the question of medical malpractice insurance, it is designed not to make hospitals safer, it is designed not to make patients safer, it is designed not to save money. It is designed to raise money. I guarantee you after the vote on this issue, all the fundraising letters will go out: Isn't it terrible, isn't it terrible, the Senate is standing in the way of much-needed malpractice reform?
It will not say: There were some in the Senate who were willing to stand up and not let the Senate run roughshod over our State legislatures.
It will not say: There are some in the Senate who were willing to stand up and say the insurance companies are not telling the truth on this issue.
It will not say: Some in the Senate were saying the very powerful contributors to the Republican Party with their $1 million ads are wrong and somebody had to say no. It won't say that.
But what it will say is the Senate would have wasted another week and a whole lot of fundraising letters will go out.
Judicial Nominations
Mr. President, the thought occurred to me, even though we have not done much here in the last few days, the last few months, or so, we see a number of people come to the floor and say we have to have immediate votes on the handful of the remaining judicial nominations. They say there is a handful out there we have to have. Interestingly, they are ignoring that 173 judges have already been confirmed, ignoring the fact that when Democrats were in control of the Senate we moved President Bush's judges through a lot faster than Republicans have. But I suppose if they talk enough about it, people will not realize the Republicans have moved far slower on President Bush's nominees than the Democrats did. But there is another point.
What they are really saying is that we have to give $163,000 a year lifetime jobs to three of the most controversial judicial nominees submitted by President Bush. To hear them talk, one would think this is the number one priority on the part of the American people: is giving three judges--highly controversial, highly political, highly ideological--a lifetime job paying $150,000, $160,000, $170,000 a year.
Frankly, I think a lot more people are worried about the millions of Americans who have lost their jobs and the millions more who worry they are going to be the next victims of outsourcing. I think that is really what is on the mind of the American public, not three more highly paid lifetime judicial appointments. They are far more worried about the millions of Americans who are out of jobs, millions of Americans who are seeing their jobs go to India and everywhere else, and millions of American families where both mother and father bringing in paychecks are barely making the mortgage. They are not the ones getting the $160,000 a year lifetime jobs.
For the public and for the Democratic Members of the Senate, our higher priorities right now have to do with the millions of Americans who are trying to find or keep their jobs. Our higher priorities have to do with securing adequate health care for the members of our National Guard and Reserves. Our priorities have to do with getting decent health care for our veterans and our service men and women who have brought the injuries home from service in Afghanistan and Iraq.
To be charitable, these crocodile tears about judicial nominations are just a tad disingenuous. Let's review the record.
The earlier Democratic-led Senate confirmed more Bush judicial nominees than the Republican-led Senate has. We confirmed 100 of the 173 Bush judicial nominees. Democrats actually did better for the President than the Republicans have.
So 173 have been confirmed. Six of the most controversial have been blocked. Two of them have been unilaterally appointed by the President during Senate recesses. One has withdrawn to rejoin a lucrative job with a law firm. So three were blocked. I have never heard so many tears shed for these three. I don't see any tears shed for the millions of Americans out of work. I don't see any tears shed for the millions of Americans whose jobs are being outsourced, but one would think that, with these three, the whole Nation is collapsing.
The irony is the same people coming down here to the floor and crying about these three, sobbing about these three, did not say one word when they blocked 61 of President Clinton's nominees. They blocked 61, and you would think the sky is falling because we stopped three. Oh, give me a break.
Let's look at what they do not want to do. During the past two weeks, we have wasted so many hours in quorum calls and cloture votes to serve the Republican leadership's goal of avoiding votes on votes that will help American families. The Republican leadership is blocking a vote on raising the minimum wage. They are blocking a vote on extending unemployment benefits. They are blocking a vote on protecting people from the new overtime regulations of the Department of Labor. Why?
During these past two wasted weeks, 687,000 more Americans filed first-time claims for unemployment insurance, yet Republicans are only talking about three jobs. Give me a break. I suspect the reason they are talking about these three is because they do not want the American people to know they blocked unemployment benefits, they blocked raising minimum wage, they blocked protecting overtime compensation. These are the people who actually have to go out and pay their mortgages. These are the people who actually try to figure out how they are going to pay to send their children to school. These are the people who live from paycheck to paycheck.
I say they blocked the Senate from extending unemployment benefits. According to figures recently released by the Labor Department, the unemployment rate held steady at 5.6 percent because hundreds of thousands of people stopped looking for work. They could not find work. This has left too many unemployed Americans without benefits for months.
They call it an economic recovery. It is a jobless economic recovery if it is an economic recovery at all because millions of Americans still cannot find jobs. Our law gives them 26 weeks of unemployment benefits, and up until the last day of 2003, if you were still looking for a job, our law would offer a 13-week extension. We tried to make a 13-week extension. Can we do it? No. Do you know why? Because the Republican leadership will not even allow us to vote on it. Are they afraid that maybe some of their own Members might now be feeling more compassion for these millions of Americans who are out of work than they do for three lifetime appointments?
Which priorities are they serving? Apparently not most working Americans. They would not even allow a vote on the Cantwell amendment.
Then we tried to raise the minimum wage. Why now? The last minimum wage was signed into law by President Clinton almost eight years ago. While they are caterwauling about a $160,000 lifetime job for three nominees, do they really believe that families could meet their basic needs on a minimum wage of just $5.15 an hour? The people who are making $5.15 an hour are real Americans, and the Republicans will not even allow us to vote for the first time in eight years to raise the minimum wage. The purchasing power of today's minimum wage is already below that of the minimum wage before 1996. To save the same purchasing power as it had in 1968, the minimum wage would need to be $8. Even in Vermont, where our state leaders have helped working Vermonters earn wages that are somewhat more livable, the minimum wage is still worth less than it was 35 years ago.
More people are out of work, underemployed, and struggling to keep roofs over their family's heads and food on the table than at any time since the administration of Herbert Hoover. Today there are more economic pressures squeezing them, with health care costs becoming unaffordable and gasoline prices reaching the highest level in my age. Despite the millions of American families with children who would directly benefit from a raise in the Federal minimum wage, Senate Republicans blocked a vote on the Boxer-Kennedy amendment to the welfare bill that would raise the minimum wage to $7 an hour in three steps over a 2-year period.
The Republican leadership is also blocking the Senate from making sure hard-working Americans are fairly compensated for working overtime. The Bush administration will soon be releasing final regulations changing the Federal rules on overtime pay. They will cut eight million middle-class Americans out of the ability to earn overtime pay.
We give tens of thousands of dollars in tax breaks to the people who go to these large fundraisers, but we take away overtime for eight million Americans who are barely making it? In fact, the regulations are so slanted against American workers that they will include a list of cost-cutting suggestions for big businesses to show them precisely how they can avoid paying overtime compensation to workers not singled out in the rules.
Bipartisan majorities in both the Senate and in the other body oppose what the Bush administration wants to do in taking away overtime pay from eight million Americans, but this year
the President threatened to veto the Omnibus appropriations bill if it included provisions to overturn the overtime regulations. After all, too many people who attend these large fundraisers have been told we will find a way for them to take those eight million workers off the overtime rolls. And unfortunately the Republican leadership in this and the other body said, yes, Mr. President, if you want to take those eight million off, we will go along with you, we will take them off.
Of course, we want to have another vote, a vote on the Harkin amendment, to express our disapproval of the labor regulations, either vote it up or down. After all, the Republicans are in the majority in this body. If they want to approve of the move of the administration of President Bush to deny overtime pay to eight million Americans, then they can vote and say they agree with it. We want a vote one way or the other, but they will not allow the vote. They are blocking that vote.
So I think we ought to talk about real people, people who live from paycheck to paycheck. We ought to talk about the votes that are being blocked to extend unemployment insurance, the votes that are being blocked to raise the minimum wage, the votes that are being blocked that might allow them to collect overtime pay for overtime work. One can imagine in the corporate boardroom they suddenly say, wait a minute, we could just have somebody work another 20 hours and we do not have to pay any overtime, we do not have to hire extra people, man, this is wonderful for us. And they can talk about it when they go out to the golf club.
We ought to ask, where are the priorities of the American people? Where are the Democratic priorities in the Senate? Where are the Republican priorities in the Senate? Should our top priority be right now to find good six-figure jobs for a handful of the President's most controversial activist judicial nominees, or should we give our time and attention to the millions of Americans living paycheck to paycheck who need help, the eight million Americans who are suddenly going to find they cannot earn overtime pay, and millions of Americans who have not had a raise in the minimum wage for eight years?
I think the priorities of the Democratic Members of the Senate are the people's priorities. Unfortunately, the priorities of my friends on the other side seem to be the priorities of the very privileged few.
I yield the floor, and suggest the absence of a quorum.
Mr. President, parliamentary inquiry. I did not understand I was under a time limit. I had asked to continue to proceed after morning business on the motion to proceed, but I didn't recognize there…
Mr. President, parliamentary inquiry. I did not understand I was under a time limit. I had asked to continue to proceed after morning business on the motion to proceed, but I didn't recognize there was a time limit there. I did not ask consent for 10 minutes.
I think the record will show that I asked for consent to continue to speak in morning business, to yield the floor, to then return to the motion to proceed, and that I be recognized to continue to speak on the motion to proceed. That does not have a time limit.
I understand that. I thank the Chair.
Sure.
I do not mean to take more than 15 minutes. I might go into 18 or 20 minutes. I wasn't going to take a long time. I wanted to finish my statement without being constrained with the 15 minutes I had under morning business. That is why I went on the motion to proceed. I will speak on that for an additional few minutes. But I will take whatever time I can now. If I am cut off, I will be back.
Mr. President, Mr. Herbert further said:
Andrew Sum, the center's director and lead author of the
study, said: ``This is the first time we've ever had a case
where two years into a recovery, corporate profits got a
larger share of the growth of national income than labor did.
Normally labor gets about 65 percent and corporate profits
about 15 to 18 percent. This time profits got 41 percent and
labor [meaning all forms of employee compensation, including
wages, benefits, salaries and the percentage of payroll taxes
paid by employers] got 38 percent.''
The study said: ``In no other recovery from a post-World
War II recession did corporate profits ever account for as
much as 20 percent of the growth in national income. And
at no time did corporate profits ever increase by a greater
amount than labor compensation.''
In other words, an awful lot American workers have been
had. Fleeced. Taken to the cleaners.
The recent productivity gains have been widely
acknowledged. But workers are not being compensated for this.
During the past two years, increases in wages and benefits
have been very weak, or nonexistent. And despite the growth
of jobs in March that had the Bush crowd dancing in the White
House halls last Friday, there has been no net increase in
formal payroll employment since the end of the recession. We
have lost jobs. There are fewer payroll jobs now than there
were when the recession ended in November 2001.
So if employers were not hiring workers, and if they were
miserly when it came to increases in wages and benefits for
existing employees, what happened to all the money from the
strong economic growth?
The study is very clear on this point. The bulk of the
gains did not go to workers, ``but instead were used to boost
profits, lower prices, or increase C.E.O. compensation.''
This is a radical transformation of the way the bounty of
this country has been distributed since World War II. Workers
are being treated more and more like patrons in a rigged
casino. They can't win.
Corporate profits go up. The stock market goes up.
Executive compensation skyrockets. But workers, for the most
part, remain on the treadmill.
The study found that the amount of income growth devoured
by corporate profits in this recovery is ``historically
unprecedented,'' as is the ``low share . . . accruing to the
nation's workers in the form of labor compensation.''
I thought Mr. Herbert wound up his statement quite adequately when he said:
I have to laugh when I hear conservatives complaining about
class warfare. They know this terrain better than anyone.
They launched the war. They're waging it. And they're winning
it.
One of the reasons they are winning it is because workers no longer have organized labor. Organized labor has been weakened to the point where workers are told: Take what you got or go get something else or we will take your job and we will take it to China or we will take your job and move it to India or South Africa or some other place. You have no recourse as a worker.
I have tried for years in this Senate and in this Congress to try to get a bill passed called the striker replacement bill which says if you are on strike you can't be replaced with a replacement worker. That one thing alone has broken the back of organized labor to the point where workers no longer have the power to withhold their labor, the only tool with which they have to bargain.
So here we have more and more of the earnings from increased productivity going to capital and less going to workers. What do we do about it? We say now we are going to take away your time-and-a-half overtime. That is the next assault on the time-and-a-half overtime. For our workers who are working more and more in this country and working longer hours than any other industrialized country, we are going to say to workers we will take away your right to overtime.
That issue was brought up on the bill that was before us earlier. That was my amendment, to say these proposed rules by the Department of Labor that would deny up to 8 million Americans their right to time- and-a-half overtime could not go into effect. Now we find that not only is the administration trying to push through new rules to eliminate overtime pay; at the same time, many employers are illegally pushing the same thing. They are doctoring their employee time records in order to avoid paying overtime. This practice is shaving time. It is easy to do, it is hard to detect, and is done in a matter of a few keystrokes.
According to the New York Times article on Sunday by Steven Greenhouse:
Workers have sued Family Dollar and Pep Boys, the auto
parts and repair chain, accusing managers of deleting hours.
A jury found the Taco Bell managers in Oregon had routinely
erased workers' time. More than a dozen former Wal-Mart
employees said in interviews and depositions that managers
had altered time records and shortchanged employees.
I ask unanimous consent a copy of the New York Times article be printed in the Record.
I also ask unanimous consent that yesterday's article by Bob Herbert be printed in the Record.
Mr. President, the article went on to point out that Kim Danner used to manage a Family Dollar store with eight employees in Minneapolis. She says:
. . . her district manager urged her to erase hours so she
never paid overtime or exceeded her allotted payroll.
She said her employees could not do all of the unloading, stocking, cashier work, and pricing in the hours allotted, so she altered clock- out times and inserted half-hour lunch breaks, even when employees worked through lunch. She says:
I felt horrible that I was doing this. I felt pressured,
absolutely. If I refused, I would have been terminated
easily.
Instead of issuing new rules to officially eliminate overtime for millions of Americans, the Department of Labor ought to be cracking down on these unscrupulous companies. The Department of Labor ought to be enforcing the overtime laws so American workers are not gouged and cheated out of their hard-earned pay.
Now we see clearly where the increased productivity is coming from. American workers are working longer hours, they are working through their lunchtimes, but their hours are being shaved. Their time is taken away from them. Sometimes they clock out and they are made to come back to work. Rather than making an example of these companies and going after them, the Department of Labor is coming around the other side and saying, well, that may be illegal, but what we are going to do is make it legal to take away the overtime rights of up to 8 million workers. In fact, even in the proposed rules, the Department offered employers helpful tips on how to avoid paying overtime to the lowest paid workers, the very workers, of course, supposedly helped by the new rules.
For example, the Department of Labor, in their own writing, suggests cutting a worker's hourly wage so any new overtime payments will not result in a net gain to the employee. The Department of Labor also recommends raising a worker's salary slightly to meet the threshold at which eligibility for time-and-a-half pay ends.
Again, American workers face a double-barreled threat to their overtime rights. They face a threat from unscrupulous employers who deny overtime illegally and now they face a threat from the Department of Labor which wants to deny overtime legally. But the result is the same: an assault on the American worker's right to time-and-a-half pay for hours worked in excess of 40 hours a week.
We are going to continue to try to offer this amendment and to try to get a vote on it. In Rollcall today there is an article saying ``Will `Obstructionist' Label Stick?'' Evidently, our majority leader last week said: Obstruction, obstruction, obstruction--every bill. That is according to Majority Leader Frist, at least according to the article in Rollcall.
I have the greatest respect for Senator Frist. He knows that. I like him as a friend. But quite frankly, that will not wash. The first ruling on FSC was in 2002.
Mr. President, I will continue my remarks later today.
Mr. President, before us right now is a motion to proceed to what is called the medical malpractice bill, for short. In fact, that is what it is--to change the tort system in America to take away the right of any person who has been injured to seek redress in court for noneconomic damages and also for punitive damages. It is called the medical malpractice bill. We have had it here a number of times before. It is not going anywhere because it is not a true compromise. There may be a compromise that could be worked out on this issue, but this bill represents a one-sided view. It is not going anywhere. The Republicans know this. They know it is not going anywhere, but they brought it up.
I thought the FSC bill--the JOBS bill--which they brought up earlier was a must-do bill. There was a jobs bill. They are going to put people to work. Yet it languishes somewhere.
In the meantime, we brought up the TANF bill. Now we brought up the medical malpractice bill.
It makes you wonder what the priorities are of the majority party in the Senate. There is a lot of talk about who is obstructing what around here. But I think it is clear to any casual observer that the majority is basically kind of filibustering their own bills, obstructing their own bills. And sometimes, as in the case of the gun bill that was up before us a few weeks ago, the Republican majority even voted against its own bill. But it chews up a lot of time. It takes up a lot of time on the Senate floor, but nothing goes anywhere.
That is what we are facing again with this so-called medical malpractice bill, or the motion to proceed to it. The majority party knows it is not going anywhere. So they want to talk about medical malpractice. There has been a few speakers on the floor today on the Republican side talking about medical malpractice.
I think what the country wants us to focus on and wants to hear us debate and discuss and vote on is the economic malpractice of the Bush administration. That is right, the economic malpractice of the Bush administration.
I mean by that the fact we have had a loss in jobs in this country over the last 3 years unlike anything we have seen in 70 years.
This chart shows that not since the Great Depression have we had a loss of jobs for any President during his first term--some more than others, but we have always had a positive indication of job creation.
It is interesting to note that most of these took place under Democratic administrations--Roosevelt, Truman, and Eisenhower had a little bit but still had some; Kennedy, we had good job creation; Johnson, very healthy job creation; even under Nixon, pretty good; Ford, back down; Carter; even under Reagan; Bush, it is down; Clinton, up a little bit more. All positive, Republicans and Democrats, until this President, the only President in 70 years to have negative job growth.
That is why I call it the economic malpractice of the Bush administration--the only President in all of those years to preside over negative job growth in our country.
Not only are we not discussing on the Senate floor these issues pertaining to workers, but we are precluded by the majority from even offering amendments and getting a vote on them.
I tried earlier on the so-called FSC bill that everyone talks about, the so-called JOBS bill they had here, to offer my amendment to disallow the promulgation of proposed rules that would change the overtime laws in our country.
Last year, to refresh everyone's memory, about this time--a year and a month ago, as a matter of fact--the Department of Labor came out with a proposed change in overtime rules.
The Fair Labor Standards Act has been in existence since 1938. We have had changes in basic overtime laws. But in every single case, when it has been done, it has always been done with consultation with Congress after open hearings with the public having input.
These proposed rules came like a bolt of lightning in the midnight hour. No public hearings were held. Not one public hearing was held on these proposed changes in overtime rules. No hearings were held by Congress. No witnesses were called to talk about what these proposed changes might mean in the workplace. They just put the rules out there.
Now the Department of Labor is about to issue its permanent change in regulations.
That is why last summer this Senator offered an amendment on the Senate floor to disallow these rules from going into effect. The Senate adopted my amendment on a bipartisan vote. We had quite a few Republicans vote for it. The House of Representatives then voted to instruct its conferees to go along with the Senate on that provision. That was on the appropriations bill. The White House came in and got it knocked out. Then we were forced to vote on the appropriations bill without that provision in it.
I said at that time in January I was going to find any vehicle I could to try to revisit this issue because the Congress had spoken; that we did not want these rules to go into effect which would take away the rights of up to 8 million American workers to get paid time- and-a-half overtime if they worked over 40 hours a week.
The first bill I could do this on was the FSC bill, which was brought out by the Finance Committee to the floor. They termed it a jobs bill.
I pointed out then, and I point out again today: How can you have a meaningful jobs bill on the floor of the Senate if we are not going to speak about it, debate it, and vote on whether we are going to take away the rights of people in this country to get paid time and a half for over 40 hours a week? Yet that is what happened. I offered the amendment. The majority will not permit a vote on it. They tried all kinds of parliamentary maneuvers, tactics, recommits, all kinds of funny parliamentary games just to keep us from voting on it.
I don't know what they are so afraid of. Are they afraid members of the President's own party might vote to say those rules shouldn't go into effect? They did last summer. I compliment them for it. That is courage. I know the President and his Department of Labor want to drastically change our overtime laws. They want to do it through the regulatory process--not through the legislative process.
Quite frankly, the Bush administration thought they could put these new rules into effect quietly with no hearings before anyone knew what was going on. But they were wrong. They got caught with their hand in the cookie jar.
The fact is, public outrage over the proposed new overtime rules has gotten stronger and stronger as Americans learn more about the details. At this point, the administration has about as much credibility on the issue of overtime as they do on the weapons of mass destruction in Iraq. In other words, the administration has zero credibility on this issue.
The Department of Labor claims it simply wants to give employers clearer guidance as to who is eligible for overtime pay. But ordinary Americans are not buying this happy talk. They know the administration is proposing a radical rewrite of the Nation's overtime rules. American workers know these new rules will strip them of their right to fair compensation. So we will continue to press for a vote on this and on a couple of other issues.
Last week on the TANF bill, the temporary assistance to needy families, Senator Boxer of California offered the amendment to raise the minimum wage, now at $5.15 an hour, to $7 an hour over 2 years. The majority will not vote on that, either. So that bill has gone by the wayside, too, because they do not want to face the music and
vote on whether we increase the minimum wage. Mr. President, $5.15 is the minimum wage now--mostly women, heads of households with children.
I point out again, since 1967, if the minimum wage had just kept pace with inflation, the minimum wage would be over $8 an hour right now. Yet we are only asking for $7 an hour.
I wonder what the hue and cry would be in this country if we had indexed CEO compensation the way we indexed the minimum wage increases since 1968. We would probably be better off in this country, to tell you the truth.
So we tried to bring up a minimum wage increase. We tried to stop these rules on overtime from going into effect to strip people of their overtime. We have tried to increase unemployment compensation, to get more unemployment compensation to workers whose unemployment benefits had run out. There are 1.1 million workers this last week who lost their unemployment benefits because of time running out. We want to extend that. The majority will not let us.
The administration is all for an economic stimulus when it involves tax breaks for people making more than $200,000 a year. When it comes to economic stimulus involving raising the income of people at the bottom of the economic ladder, whether by increasing the minimum wage or creating jobs directly, which is what the highway bill will do, the President is even threatening to veto the highway bill.
We passed a bipartisan highway bill in the Senate. The House passed something substantially less. The President has threatened to veto that. Actually, the House bill for my own State of Iowa would mean 12,000 jobs less than that passed by the Senate. Yet the President has threatened to veto even the House version.
There is a frustration among American workers right now. They know they are working harder. They know they are working longer. But something is wrong. They are not getting adequate compensation. As this chart indicates American workers are working longer hours per year than workers in any other industrialized country. In fact, since 1979, every single industrial country has reduced its work hours except one, the United States. In Japan, since 1979, they have gone down 286 hours a year. Germany has gone down 489 hours per year. Even Canada went down 31 hours a year. Australia went down 44 hours per year. But the United States went up an average of 32 hours per year. We are the only country increasing the number of hours worked per year.
Not only that, as we found out earlier--I quoted the New York Times Sunday article by Steven Greenhouse--unscrupulous businesses in America are cheating people out of their overtime. I may not have mentioned a guy by the name of Drew Pooters, retired member of the Air Force military police. He went to work in a Toys ``R'' Us store in Albuquerque. He was stunned by what he found his manager doing.
. . . his manager was sitting at a computer and altering
workers' time records, secretly deleting hours to cut their
paychecks and fatten his store's bottom line.
``I told him, `That's not exactly legal,' '' said Mr.
Pooters, who ran the electronics department. Then he out-and-
out threatened me to not talk about what I saw.
Mr. Pooters quit. Then he got a job managing a Family Dollar store, one of 5,100 in that discount chain. Top managers there ordered him not to let employee total hours exceed a certain amount each week. One day he said the district manager told him to use a trick to cut payroll, delete some hours electronically.
Experts on compensation say the illegal doctoring of hourly employees' time records is far more prevalent than most Americans believe. The practice, called ``shaving time,'' is easily done and hard to detect with the simple matter of computer keystrokes.
I earlier had this article printed in the Record.
The article revealed in Toys ``R'' Us, in Dollar Stores, Taco Bell, Pep Boys, Wal-Mart employees, et cetera, workers are basically being cheated out of their fair compensation. Many are being cheated out of overtime.
Here is what the Wall Street Journal article said about this:
While employees like overtime pay, a lot of employers
don't. Violations are so common that the Employer Policy
Foundation, an employer-supported think tank in Washington,
estimates that workers would get an additional $199 billion a
year if the rules were observed. That estimate is considered
conservative by many researchers.
American workers are being cheated out of over $199 billion a year by unscrupulous employers.
Here we have the Department of Labor legally--trying to do it legally--taking away workers' rights to overtime pay. The Steven Greenhouse article in the New York Times showed on Sunday there is a rampage in this country of illegal activities taking away workers' rights to their adequate pay. Why isn't the Department of Labor focusing its time and energy in going after these unscrupulous employers, making an example of them so others will not be encouraged to do the same thing rather than trying to legally take away workers' rights to overtime?
That is why I say this Bush administration is committing economic malpractice.
You do not have to be from Iowa to know that you do not fertilize a tree from the top down. You fertilize the roots. That is how we need to stimulate the American economy, by applying stimulus directly to the roots. There are obvious ways to do this. One, instead of tax cuts for the wealthy, you focus tax cuts on working people. Secondly, you increase the minimum wage. You put more money in the pockets of hard- working people who, by necessity, have to spend every penny. Three, you extend benefits for the long-term unemployed, again, who, by necessity, are spending every dollar they receive. Four, you pass a highway bill that is as generous as possible.
We need to rebuild our Interstate Highway System in this country. Take a drive on any one of them. They are beat up. They are disintegrating. They are a patchwork here and there. They are causing delays in trucking. They are beating up our cars and taking away from the productivity of America. Our bridges need to be replaced. Sewer and water systems need to be upgraded.
These are good jobs. These are jobs that employ Americans. When you think about construction jobs in this country, that is what I call insourcing jobs rather than outsourcing jobs because, you see, if you are building a bridge or a highway, a sewer and water system, or maybe a new school, when you think about it, most of the products are made in America. Think about it. The cement is made here. The rebars, the rerods, and all that for construction are made here. When you put up a building, you put up wallboard. That is made here--and electrical wiring, electrical conduits, electrical switches, electrical lights, plumbing. When you think about all that goes into construction, most-- the vast majority--of the products are made in this country.
Guess what else. All of the labor done is here in America. You do not outsource those jobs. Those are American jobs. What do you get out of it? You put a lot of people to work. You improve the productivity of America. You get a lasting benefit of things that last for a long time, and that helps us be a more productive and vibrant Nation.
It seems we can spend billions of dollars in Iraq and Afghanistan to rebuild those countries. We need to invest money like that here in America. For every $1 billion spent on these projects, we sustain or create more than 47,000 jobs for American workers. That is the direction we ought to be going, rather than more tax cuts for those who make over $200,000 a year.
I do not have it with me, but I saw a cartoon in the paper today that I thought said it all. There was a gasoline pump, with gas that cost about $1.90 a gallon. This American worker had obviously just filled his tank, and he was up at the window paying. In back of the window sat what looked like one of the Saudi Arabian princes saying, ``Thank you,'' and taking our American worker's money. The caption below it was: There goes the tax cut.
How many American workers, who are told by this President they got a tax cut for this or that, are now seeing it go to pay for imported oil, to pay for the increased price of gasoline because this administration will not take their friends in Saudi Arabia to task to keep these prices low, will not let some of the oil out of our Strategic Oil Reserve
right now to counter these increased prices? So we find whatever little money the worker may have gotten in a tax cut going to pay for the increased price of gasoline. Again, economic malpractice, economic malpractice by this administration.
So we can go to the medical malpractice bill. Quite frankly, again, we are focusing on medical malpractice and whether someone can sue for damages, and this and that. While there may be a reasonable compromise on this issue at some point, this bill is not it. But I wonder--I truly wonder--how many of the 43 million Americans who have no health insurance coverage whatsoever would think this is the major health care issue that we ought to be debating and voting on in the Senate Chamber. They are not interested in medical malpractice or suing. They just need health insurance. They need coverage for themselves and their families. Here we are talking about lawsuits, when what we ought to be talking about is how we are going to get health care coverage to people in America.
The other side can talk all they want about obstructionism and who is holding up what. We have said, time and time again, as I said on my overtime amendment--I am not obstructing anything. I will take a time agreement. We have already had enough discussion. In 15 minutes we can have a vote. In 15 minutes we can have a vote on the minimum wage. In 15 minutes we can have a vote on extending unemployment compensation.
Who is obstructing what around here? It is simply that the majority side does not want to have these votes under the time-honored tradition of the Senate to debate, discuss, and vote. It seems as if the majority side now wants to turn the Senate into just another House of Representatives--come out with a closed rule. I know that sounds kind of funny. What does that mean? What it means is the majority party brings out a bill. You cannot amend it. You cannot change it. You either have to vote for it the way it is or not vote. If they have the majority votes, they want to pass it.
That is not the way to run the Senate. It is not the way to debate and vote in the Senate. The way to do it is to have our debates, have our votes, and move on. Sometimes you win; sometimes you do not. But, to me, that is what the American people want us to do.
We are doing nothing in the Senate right now--nothing. The reason we are doing nothing is because the other side will not let us vote. So here we sit with bill after bill that is brought out, trying to game the system so we cannot have votes on these meaningful issues.
They say: Well, these are just political games. No, they are not political. When you are talking about taking away a worker's right to overtime pay; when you are talking about increasing the minimum wage for a single mother with kids to feed, who is being cheated out of her overtime pay; when you are talking about a family whose unemployment benefits have run out, and they do not know where to turn, it is not political. It is just focusing on the real needs of America--our working families--and not focusing on giving yet more tax breaks to those who already have too much in our society.
Mr. President, I will close my remarks--I see others want the floor-- to say we will be back. I do not like to quote too much the present Governor of California but: I'll be back.
Time and time again, I will be back to offer this overtime amendment, until we have a vote on it, and until we can express ourselves on these onerous rules that the Department of Labor wants to foist on the American worker.
Mr. President, I yield the floor.
Mr. President, I ask unanimous consent that the following Senators be added as cosponsors of S. 2207, the Pregnancy and Trauma Care Access Protection Act: Senator Fitzgerald, Senator Cornyn, and…
Mr. President, I ask unanimous consent that the following Senators be added as cosponsors of S. 2207, the Pregnancy and Trauma Care Access Protection Act: Senator Fitzgerald, Senator Cornyn, and Senator Hatch.
I thank the Chair.
I wish to express my gratitude to the majority leader for his important comments. He brings an expertise to this debate no one else in this body can offer by virtue of his training, education, and extensive practice as a medical doctor in Tennessee. I am not going to speak from the perspective of a doctor because I am not one. I am going to speak from the perspective of a patient because, like it or not, I will be one at some point in my life, and from the standpoint of other prospective patients which would include not only my family and loved ones, but literally everyone within the sound of my voice.
I want to express again my appreciation that the majority leader would bring this issue back up. This is our third attempt in recent months to enact significant medical liability reform. The reason why it is so important to bring this issue back up is to ask our colleagues across the aisle who have obstructed our ability to go to a vote on this important issue to reconsider because the truth is their obstruction of our ability to get meaningful medical liability reform is not hurting doctors only, it is not hurting insurance companies only, it is hurting everyone who has been or will be a patient in a medical care facility or at the hands of a doctor.
We have had the opportunity to discuss these issues before, as I said, but before I get into what I consider the meat of this issue--and that is access to good quality health care for all Americans--let me say on other issues that affect American competitiveness in terms of our ability to compete in a global economy, the ability of employers to provide health insurance for their employees, which is diminishing day by day because the costs of health care continue to go up in part because of our broken medical liability system, that, in turn, puts pressure on the uninsured in our society. Where employers are unable to carry medical insurance on their employees, that means that too many people who cannot afford health care coverage are forced to emergency rooms where they know they can and will be treated. In the vast majority of those cases, they could be more efficiently, more humanely, and more cost-effectively treated in a primary care setting in a doctor's office or in a clinic, but because of the pressures being put on our health care system by a broken liability component, it is hurting us in so many different ways.
As I said, I want to talk about access, but it also hurts us in terms of our global competitiveness, in terms of job creation and job growth, and in terms of diminished access to health care because people have nowhere else to turn if they do not have medical insurance, except the emergency room where they know they can and will be treated but in a way that is insufficient, inhumane, and certainly not cost effective and causes a host of other problems in all of our big cities and everywhere else where emergency rooms are frequently put on divert status because they are so clogged up with cases that probably, in a medical sense, should not be there because they could be treated more cost effectively and more humanely in another setting, but they are there and then the true emergencies are diverted to emergency rooms that are farther away.
The majority leader, Dr. Frist, talked about the medical consequences of delayed treatment when people have to travel sometimes many miles just to get treated, what complications can occur because of a traumatic injury or because a baby that is delivered because the mother cannot find a hospital that can take her nearby. My point is, it creates a cascading of problems that are not just limited to medical liability but which have a lot of ramifications and a huge ripple effect.
Unfortunately, our colleagues on the other side of the aisle are offering no solutions but are merely trying to score political points, trying to divert the attention to other nonissues and will not allow us to do what we have been sent here by the American people to do and that is to pass legislation that will meaningfully and significantly improve the quality of their lives.
We have had a chance to deal with this medical liability problem before and, unfortunately, we have not done so. My hope is that our colleagues will reconsider and we will do so today. If those on the other side of the aisle are truly serious about their concern for the American people and the quality of health care they receive, I hope they will join us in passing the bill we are discussing today.
The solutions to their professed concerns are right before us. They just need to allow an up-or-down vote. I hope the American people are paying close attention to what is happening, because if we do not get an up-or-down vote it is they who will pay the price for those who would prefer to score political points over actually producing results.
The bill offered by the Senator from New Hampshire, the distinguished chairman of the HELP Committee, the Health, Education, Labor, and Pensions Committee, is designed to improve access to health care, both for women who need obstetrical and gynecological care and for patients who need emergency care.
As I am sure every Member of this body has, I have heard complaints from our constituents about how badly the system is broken.
There are those on the other side of the aisle who would say that, because we have been rejected twice before, by bringing it up a third time this is somehow just a political exercise. I assure them that is not true. We were not allowed to vote before, despite support from a bipartisan majority.
The bottom line is, we are simply unwilling to put up with or to accept, without a fight, the kind of obstruction we have seen on this and so many other important issues.
This bill would provide desperately needed relief to a health care system that is in crisis, focusing especially on emergency room doctors and obstetrics, baby doctors, to critical areas that deserve our support.
This chart has been seen before, and my colleagues will notice that this chart reflects in red States that are in crisis because of the difficulty of purchasing medical liability insurance, the huge increases in cost which have simply caused medical doctors either to retire early or to move to States that have provided some commonsense reform or just discouraging people from getting into the medical profession at all.
The States in red, including my State of Texas, are indicated as States in crisis. The ones in yellow are the States showing problem signs but do not yet qualify as a crisis State, and
the ones in white are States that are currently considered to be OK. I would not suggest by saying that they are currently OK that they have no problems. It is just that they have not gotten to the point that conditions have in my State and other States indicated in red.
The truth is, this crisis is not something that just popped up this week. It is a crisis that we had last fall when we were blocked from bringing up comprehensive medical liability reform for an up-or-down vote. It was a crisis that existed a month ago when we were blocked from having an up-or-down vote for legislation that offered immediate help for mothers and their babies, and it remains a crisis today even as we attempt to debate this legislation and bring it up for another vote.
The fact is, frivolous lawsuits are causing escalating medical malpractice insurance premiums which are driving doctors out of practice. We can debate what the cause of that is, but we cannot debate the result. It is a fact. Indeed, opponents of this legislation do not appear to debate the fact of the result--that is, doctors leaving, retiring, not going into practice, access being denied. They just want to say there may be other causes, but they do not want to deal with this cause because, unfortunately, an important constituency, the personal injury trial lawyers, simply are unwilling to agree that any change in this current broken system can be made.
The problem is that those who are preventing us from taking up this legislation are simply caving in to the demands of this narrow special interest group that are prospering mightily, that are getting rich off the current system, at the same time that the rest of America is getting hurt.
This is a picture of a doctor formerly who practiced in Fort Worth, TX, representing medical specialists, especially neurosurgeons, orthopedic surgeons, obstetricians, and emergency physicians, who are being forced to retire early or move their practices to States where effective liability reforms are in place.
For example, Dr. Malone comes from my home State. He is an orthopedic surgeon who has practiced more than 20 years in Fort Worth, TX. He reluctantly was forced to leave his practice, citing the extreme costs of liability insurance for physicians as being too much of a financial burden for him to bear.
We simply cannot expect physicians to practice their chosen profession after their lengthy education and training and not be able to provide for their families. We don't expect them to do it at a loss to themselves and their families. I don't think we can blame them, when the costs of doing business exceed what comes in the door such that they simply have no choice but to leave.
In the State of Texas, this crisis, particularly as it regards baby doctors, obstetrician-gynecologists, means that out of 254 counties of Texas, 154 of them have no OB/GYN specialist. In other words, a woman who is pregnant and perhaps needs prenatal care, so increasing the chances her baby will be delivered healthy, must travel to another county in order to get that prenatal care from a specialist; or once she goes into labor, she must travel to another county to have the doctor, medical specialist in obstetrics, deliver that baby. This means almost 6 out of the 10 counties in my home State alone have no doctor specializing in obstetrics, representing approximately 2 million Texans in my State.
Let me talk about another story, another case that is worth referring to also in my State. Just last year a pregnant woman showed up at Dr. Lloyd Van Winkle's Castroville office in south Texas. She showed up in Dr. Van Winkle's Castroville office less than 10 minutes from delivery of her baby. Her family doctor in Uvalde, another Texas town, had recently stopped delivering babies altogether, citing medical liability concerns, and this pregnant woman was trying to drive the 80 miles to her San Antonio doctor from her home in Uvalde.
Let me give another story about a woman by the name of Denise Payne. Denise Payne walked into an emergency room recently. The doctors there did not want to treat her. She said, ``They didn't want to touch me because I was pregnant,'' this 38-year-old pregnant woman, who was 6 weeks along in her pregnancy at that time.
Luckily for Denise Payne the delay getting treatment didn't kill her. Although she couldn't get a kidney biopsy in Corpus Christi on the gulf coast of Texas, she was able to get one about 150 miles away in San Antonio, but she doesn't blame the doctors. ``I would say it's because of all the lawyers scaring the doctors,'' she said. ``They are scared to death to treat you.''
Indeed, that reminds me of other situations where I have heard doctors, concerned about their patients, but saying because of the broken liability system, every time you walk into an examining room, every time you walk into the emergency room, every time you walk into the delivery room, you are putting at risk everything that you have worked a lifetime to build for yourself and your family. Physicians and others are simply not able to put up with it, resulting in a crisis that even Ms. Payne, who no doubt was frustrated by her inability to get doctors to treat her in Corpus Christi, had to drive 150 miles away to get treated because she was pregnant and she needed a kidney biopsy. But because she was a higher risk patient who is at a higher risk of medical complications but also a higher risk of litigation, the doctors were scared to death to treat her, so she had to travel a long way to get that treatment.
These stories are not unique to Texas. Let me tell you about Linda Sallard of Arizona. At 2 a.m. on the morning of March 20, 2002, 22- year-old Melinda Sallard woke up with labor pains. She and her husband hopped into their car and started driving the 45 miles to Sierra Vista, which housed the only hospital within a 6000-square-mile area with obstetricians able to deliver babies. En route, they passed the Copper Queen Community Hospital, which was forced to close its maternity unit just 2 months earlier because all the practitioners able to deliver babies had lost their medical liability coverage.
Just 3 miles past Copper Queen, which is where they had a hospital that could have delivered her baby but had since closed its delivery facilities because of medical liability concerns, just 3 miles past this hospital, while her husband continued to drive their car, Melinda delivered her own baby girl, who you can see here in this picture in her lap. She gave birth on a desert highway to her daughter, Susanna. While Susanna, as you can tell from this picture, looks healthy and thriving today, when she was born she was not breathing. So Melinda, after she had the baby by herself, unassisted, without a physician-- because she couldn't get to a hospital that had obstetrical services in time--Melinda, after she had her baby, cleared the baby's breathing passage and started CPR. Fortunately, the baby started breathing and Melinda wrapped her newborn in a sweater and held her to her chest as her husband drove them all the way to Sierra Vista Hospital, where the ER staff cut the umbilical cord in the parking lot.
As a result of the medical liability crisis, Sierra Vista is now the only hospital in a county of 140,000 residents that actually delivers babies. All high-risk patients are sent to Tucson, an hour and a half away, in a neighboring county. I shudder to think what could have happened in Melinda's case. Thankfully, as I said, Susanna Sallard is a healthy young girl--no thanks to a medical liability system that almost left her as a casualty.
The skyrocketing liability insurance premiums have also affected emergency and trauma services for patients. This is where the severity of the crisis becomes even more apparent.
Let me tell you about Jim Lawson. This is a picture of Jim Lawson, Mary Rasar's father. Mary lost her father in 2002 when Nevada's only level I trauma center was forced to close because of skyrocketing medical liability costs. The majority leader, Dr. Frist, told us earlier that level I trauma centers are the ones that handle the most serious trauma cases. But Nevada's only level I trauma center was forced to close in 2002 because of skyrocketing medical liability costs.
Jim Lawson was injured in a car accident in Las Vegas, where he suffered multiple injuries and required immediate care. The State's only level I trauma center, the University of Nevada's medical center, where Mr.
Lawson should have been taken, was forced to shut its doors just days before this accident because rising liability costs had forced insurers to drop coverage on high-risk specialists, high-risk specialists like neurosurgeons, like emergency room physicians, and others who handle the most seriously injured patients.
Unfortunately, as I indicated at the outset, this story does not have a happy ending. Mr. Lawson was rushed to Desert Springs Hospital, where he died while awaiting air transport to the next nearest level I trauma center facility, more than an hour away, at Salt Lake City, UT. So this gentleman, who was in a car accident in Las Vegas, who could have been treated at the University of Nevada's medical center but for the fact it had to shut down because it lost its medical liability coverage, died because the only facility that could treat him was more than an hour away in Salt Lake City.
Let me tell you about Leanne and Tony Dyess. Leanne is a 48-year-old wife and mother of two from Mississippi. This is Leanne and her family. On July 5, 2002, Leanne's husband Tony was involved in a car accident in Gulf Port, MS, and suffered serious head injuries. After removing him from the car, paramedics rushed Tony to Garden Park Hospital in Gulfport, MS. But there were no neurosurgeons there available to treat Tony because rising medical liability costs forced doctors in that community to abandon their practice. Six critical hours passed before Tony could be airlifted to University Medical Center. As a result of the inability to locate a specialist to provide him immediate care, today Tony is permanently brain damaged, mentally incompetent, and unable to care for himself or his children.
In addition to this tragedy and the others I have mentioned, there are numerous other examples from my home State of Texas of tragedies, or near tragedies, or worse than injuries as a result of the inability to get medical care close by because of this crisis.
Another couple of stories: George Kuempe, who recently retired as a reporter for the Dallas Morning News not too long ago, fell from an oak tree and broke his back on a Sunday afternoon in the Austin area. He had to be flown to Scott & White Clinic in Temple, TX, because there were no neurosurgeons available in Austin, TX. There was a long delay in the amount of time necessary to treat his injuries in order to travel just 60 miles up the road. There were hours of delay. Dr. Path Crocker, chief of emergency medicine at Brackenridge Hospital in Austin, where he could have been and should have been treated had a neurosurgeon been available, said this is a warning flag to the citizens of Texas that a major problem is brewing.
In 2002, an elderly man was taken to an emergency hospital room in McAllen, TX, in south Texas in the Rio Grand Valley after falling and injuring his head. After 7 hours, the emergency room could still not locate a neurosurgeon to treat this elderly man's head injury, even though they searched in Corpus Christi, in San Antonio, and Austin. Unfortunately, this elderly man, with a head injury, died because he could not get timely medical treatment for that condition.
There are even more stories that illustrate the lengths to which patients must go just to receive desperately needed care.
Neurosurgeons in Houston, TX, are bombarded with trauma and emergency cases from around the State because doctors have dropped emergency services in efforts to lower their professional liability premiums just so they can earn a living.
You can see Houston, TX, located in the southeast part of our State where patients, let us say, down in the Rio Grand Valley--this shows Harlingen, a distance of 330 miles, which is close to McAllen where that elderly man had a head injury and where he would have to be airlifted to Houston to receive those treatments by a qualified neurosurgeon or other specialist. The time it takes to travel 330 miles from the Rio Grand Valley to Houston, the time it takes to travel from the Rio Grand Valley to San Antonio, or San Antonio to Houston, or El Paso to Houston, obviously, has medical consequences which means people who are injured and suffer more serious injuries and people whose lives could have been saved lose their lives because of this medical liability crisis with which our colleagues on the other side of the aisle simply refuse to deal.
Houston neurosurgeon Bruce Ehni described it like this. He said:
We are the recipient of much more serious and risky cases
that would have otherwise been cared for locally. Here at our
hospital in Houston we are receiving hemorrhages, traumas
and other dire emergencies from as far away as El Paso on
the opposite side of the State, and Brownsville, which is
down near Harlingen in the southern part of the State--
sometimes up to 600 miles or more away.
Some of the examples include a patient with head trauma and a blown pupil flown in from Harlingen to Houston, more than 300 miles away; an intracranial hemorrhage flown in from Laredo on the United States- Mexico border 300 miles away; and a brain tumor causing an abrupt paralysis flown in from San Antonio, 200 miles away.
Dr. Ehni continued:
All of these communities have neurosurgeons. The ``bad''
cases end up in Houston despite the presence of neurosurgeons
locally because everyone is trying to avoid being sued. It is
bad for patients and it is bad for us. We are being dumped on
endlessly.
For the rest of this body, and perhaps others listening, let me put all of this in perspective geographically. For a medical transfer from El Paso to Houston, it would be as if a patient was hurt in Washington, DC, and because he could not find a surgeon, he had to be flown farther than Chicago, IL, for surgery. For a transfer from Harlingen to Houston, it would be like forcing a patient to fly from Washington almost to Buffalo, NY. For a transfer from San Antonio to Houston, it is as if a patient were forced to fly from Washington to New York City.
Can anyone in this body state they would be content to have their family or loved one suffer those sorts of delays in treatment if they really needed a medical specialist and couldn't find one? Of course, they wouldn't accept that. Neither should the American people. But that is what they are being forced to do because of the inaction and obstruction of those on the other side of the aisle who will not allow us to have a true debate and an up-or-down vote on this reform to our broken medical liability system.
The chief obstacle to making our health care system the best in the world is our liability lottery. In the liability lottery, people aren't free to act because doctors simply can't meet the demand, and Americans end up paying more for health care and suffering medical complications because of it.
It is not all bad news, I must say. I am glad to say, in response to many of the concerns which I have raised that pertain to my State of Texas, the legislature and the people of my State have acted. Last September voters took to the ballot and passed Proposition 12, an amendment to the Texas Constitution providing caps on noneconomic damages and paving the way for the full implementation of important medical liability reform.
We already have, even though this passed just last September, some of the early signs of beneficial results. One medical liability insurance carrier has reduced their medical liability premiums by 12 percent, and another medical liability insurance company has canceled their planned 19-percent rate increase because of these reforms.
My home State of Texas recognizes the need for government to step in and help address this urgent problem. But more needs to be done, and there is still too little recourse for patients in States without reform.
Let me mention briefly some of those States. In Illinois, more than 15 percent of the neurosurgeons have left the State in the last 2 years. That is according to the American Association of Neurological Surgeons. There are currently no hospitals in the northwest suburbs of Chicago that have 24/7 neurosurgery coverage. Most patients in need of care are transferred either to Rockford, which is 60 miles away, or to the University of Illinois in Chicago, 45 miles away--not quite the distances we talked about in my State but still nevertheless consequential distances in terms of the delay in treatment of serious cases.
In the State of Massachusetts, the home State of Senator Kennedy and Senator Kerry, a third of the State's hospital beds have closed in the past
decade, and 32 percent of physicians say they plan to leave the State if the practice environment fails to improve. In the 1990s in Massachusetts the number of practicing obstetrician/gynecologists declined by more than 20 percent. In New York, record numbers of people seeking emergency care are overwhelming emergency departments across the State in areas including Long Island, Syracuse, Rochester, and Buffalo. Many doctors and higher risk specialties are eliminating services, retiring early, or contemplating leaving. The exodus of 4,000 doctors in New York alone from 2000 to 2002 has been attributed to a litigious atmosphere in that State.
In North Carolina, in 2002 alone, medical liability rates increased by 50 percent and high-risk specialists are facing increases between 50 percent and 100 percent. Physicians are simply going out of business, leaving a State, or substantially increasing prices as they pass along costs, as they can, to their patients. But the problem is especially acute for obstetricians, neurosurgeons, and emergency physicians.
Finally, the last State I will mention is the State of Washington. Since 1998, Washington State has seen a 31-percent increase in its physicians moving out of the State, and between 1996 and 2001 the number of retirements increased 50 percent with the average age of those retirees dropping from age 63 to age 58.
We know this liability reform can have a beneficial impact on reducing costs and improving access because some States have done it for a while. My State has done it since September and has not yet seen the full benefit although we have seen some very hopeful early signs. California has adopted something called MICRA, which has been the medical liability tort reform package. With MICRA, California has achieved a more stable marketplace and lower premium increases over the years than have other States without the kind of medical liability reform we are advocating today. According to the data, California medical liability premiums grew 167 percent over the past 25 years compared to 505 percent for States without medical liability reform.
I have taken more time than perhaps I should, but I thought it was important to go over in detail what the problem is, what we think the solution may be, at least in part, and demonstrate for our colleagues on the other side of the aisle, if they would allow an up-or-down vote on this legislation, we could see some very real, substantial benefits, not just to physicians.
I like physicians. I respect physicians. But this is not something we ought to do to help members of the medical profession. The reason we ought to do it is to help patients. Like it or not, all of us will be patients at some future point in our lives. The best way we can ensure the good quality health care is available for us and our loved ones, should we need it in the future, is to pass this meaningful reform.
I ask our colleagues to seriously reconsider and not to obstruct this important reform. We know it can help. If they have other ideas they think will add to the substantial beneficial effect of this legislation, let them come to the floor and talk about it. We will be willing to talk to them and engage them on it. If a consensus develops that an even better package can be produced as a result of the kind of debate and negotiations and compromise that characterize this body and which this body is so good at when it works properly, I say, bring it on.
I yield the floor and suggest the absence of a quorum.
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Mr. President, I will take a few moments to comment on a bill that deserves to be debated on this floor and brought to this floor because, as the distinguished Senator from New Hampshire said, the…
Mr. President, I will take a few moments to comment on a bill that deserves to be debated on this floor and brought to this floor because, as the distinguished Senator from New Hampshire said, the patients--not the doctors and not the system; all of them are disadvantaged--but it is the patients who suffer.
When people hear of patients, they say: That is somebody in a hospital somewhere who is suffering. No, it is you and your children, and everybody who is listening to me. Who knows? You could be driving home today from work, and you might have an accident and have to go to the emergency room or the trauma room. Or after you pick up your kids from school--or maybe they are taking the bus home from school today-- if they are struck by a car, or fall down and break a bone, they have to go to the emergency room. Or if you are one of the millions of women who anticipate the joy of having a baby in the near future, it is you who will suffer as you look for an obstetrician, as you look for an obstetrician who will be with you during that prenatal period or over the whole 9-month period.
All of this comes down to a fundamental issue. Our medical litigation system is broken. It is failing. It is failing the American people. It is failing our communities. It is failing our hospitals. It is failing our doctors. It is failing our families. And, most importantly, it is failing our patients.
The medical litigation system should be strong. Its purpose is to promote the common good, first and foremost; and, second, to improve health care for all Americans through the fair and efficient resolution of meritorious medical negligence claims. Indeed, those two purposes-- to promote the common good and to improve health care through the fair and efficient resolution of meritorious medical negligence claims--are noble goals.
But instead of achieving these noble goals, our litigation system is out of control and patients are being hurt. Due to this broken system of medical justice, medical liability premiums today are unnecessarily skyrocketing. You will hear the words ``skyrocketing'' and ``runaway'' because that is what is happening. The ultimate victims are the patients--the potential patients, the future patients--and that means all of us, our families and future generations.
The ultimate victims are patients who see their access to care--to that obstetrician, to that emergency room, to that trauma center-- threatened and, in some cases, totally disappearing. The American Medical Association now lists 19 States where access to care is threatened. The situation is a crisis that is getting worse day by day by day. That is why as majority leader, in terms of scheduling in the Senate, we are going to keep bringing this issue back because the crisis is getting worse. If we are not successful, we will come back again and again.
While the crisis does affect all people who will need or who need appropriate access to care, it affects those who are seeking help from specialists in particular. When we say ``high-risk specialist physicians,'' they are the ones who are responding to a trauma accident or the neurosurgeon who has to be highly trained to respond to a brain injury, a contusion, a head injury. When we say ``high-risk medical specialist,'' we mean the cardiac surgeon, a high-risk specialty physician who is called in if trauma comes into an emergency room.
These patients who seek the high-risk medical specialist indeed are among the most sick and the ones who most desperately need urgent attention. But our litigation system is increasingly forcing these medical specialists, such as neurosurgeons and obstetricians, to drop their services altogether and not do those higher risk responses; to limit those services maybe to certain hours to not provide those services; not to offer those services in the emergency setting but do them in a much more controlled environment.
It is even causing these high-risk medical specialists to pick up their practices and move from one State,
say, from cities such as Philadelphia, where premiums are skyrocketing, to a city in California that has done a much better job and that is not in crisis because they have legislated appropriately in terms of addressing what was 20 years ago a crisis in California in medical liability. It causes these neurosurgeons and obstetricians--the two areas we are addressing in part with the legislation we are doing our best to bring to the floor over the next 24 hours--to retire from the practice of medicine altogether. They are saying: It is too much, $400,000 as a neurosurgeon in some cities, just for liability premiums. I can't afford that. I am going to leave the whole practice of neurosurgery. It does not make sense for me anymore.
That is the reality today. It is a reality that is getting worse. And when we say it is a crisis, it is a crisis getting worse. And that demands a response by this body. As the services these specialists provide become harder and harder to find, who is hurt? Everybody, yes, but the sickest and, indeed, the most vulnerable are the ones hurt the worst; again, demonstrating the perverse and unintended consequences of a failing medical litigation system. That is why this week we are bringing to the floor this medical liability reform. It is for the patients.
The Pregnancy and Trauma Care Access Protection Act focuses liability reform on two areas: Emergency and trauma care, and obstetrical services, where the services are provided right before, during, and after the delivery of babies. It is these two critical areas that are literally under siege today because they rely on medical specialists who are suffering the most from this lawsuit abuse.
Of course, the true victims are those who need to go to the emergency room, as the distinguished Senator from New Hampshire said. It is not the physicians themselves. It is the people who have to go to the emergency rooms and wait longer for a specialist to be called in because they are not in the hospital, or there is nobody in the region. It is the expectant mother who is having difficulty even finding an obstetrician. And it is the stories that are increasingly occurring of once you get an obstetrician, right after you become pregnant, that obstetrician leaves and moves and another obstetrician comes in, and maybe that obstetrician stays a few months and then another obstetrician. So we have a huge medical problem. It is our responsibility to respond.
Before coming to the Senate, I spent 20 years both training and practicing as a thoracic surgeon, a chest surgeon, which is heart, lungs, trachea--really everything between the diaphragm and the neck. That is what I did. As a member of the thoracic surgical team at Vanderbilt University Medical Center, we handled all of the trauma to the chest, the lungs, the heart. That is what I did every day.
At that level I trauma center, which covered throughout the middle section of Tennessee, if somebody came in with a knife wound to the chest, they would call Dr. Frist, and I would go down and repair the knife wound to the chest or to the heart, as a medical specialist. Based on that experience, I can tell you that emergency care and trauma care is an absolutely necessary and critical component of our overall health care system.
Each year, there are 110 million visits to the emergency room, and 90 percent of these visits require urgent attention, emergency attention within 2 hours. These are emergencies. As I implied earlier, no one can predict when you are going to need that care. Driving home today, will you be in an accident, or will your child fall down and break a bone climbing a tree this afternoon? That is emergency care that you want a response to immediately.
The Alliance of Specialty Medicine has documented the important details of this critical care. Approximately 28 million Americans visit the emergency room each year due to an accident. Ninety-nine percent will recover after receiving care; in many cases, lifesaving care. Over 3.5 million emergency room visits are related to bone fractures or to broken bones. Of these, 888,000 require hospitalization, and delays in treatment can result in loss of the use of that limb, amputation of that limb, or indeed permanent disability. Over 1.5 million people suffer traumatic head injury with damage to the brain itself.
Neurosurgeons, a focus in the legislation we are debating, perform over 36,000 emergency brain operations on head-injured patients each year. They place little intracranial monitoring devices to control brain swelling in another 8,000 patients each year. Trauma frequently inflicts damage to the spinal cord which runs through the body. Indeed, over 70,000 Americans are hospitalized because of spinal injuries each year. Another 26,000 are hospitalized with acute or emergency or sudden neck injuries.
And, as we all know, nerve tissue heels in a very slow, different way. You cut off blood supply to the spinal cord or to the brain and there is not an immediate response. That tissue pretty much dies forever; very slow recovery. Thus that time of response becomes critical. Delay in treating any sort of injuries to the spinal cord can cause paresthesia or tingling, paralysis, can cause permanent disability, and, of course, can cause death.
My own specialty was the chest and was cardiothoracic, cardiovascular, the heart itself. When you look at emergencies coming in because of heart attack or cardiovascular disease or stroke, the blood vessel is huge. Sixty-five million Americans have some form of heart and blood vessel, or cardiovascular disease, which could lead to a heart attack or stroke; and each year over 1 million Americans suffer a myocardial infarction, or a heart attack. You want to take them to the emergency room because today, as cardiac surgeons, cardiologists, heart specialists--and it is very different today than 30 or 40 years ago--there are medicines you can give and procedures you can do that can open up the blood supply when you have a heart attack and get blood to the heart before the millions of cells die. Every moment counts. It is important to get that blood supply opened by heart specialists.
Unfortunately, our broken litigation system is stretching those moments--if those specialists are not available to respond--into hours. It is stretching them longer and longer, and that causes death of that heart muscle.
Of course, patients and most people listening today expect, if they have an emergency and are going to be rushed to the emergency room, that there will be people to treat them, including heart specialists who can rush down and open the blood vessels; or if they have a brain injury or a concussion or a contusion to the head, they expect there will be somebody there to respond appropriately.
However, that assumption is getting to be less and less true, due in large part to our broken medical malpractice litigation system. Because of runaway medical malpractice costs, many medical specialists have been forced to stop treating patients in the emergency room--the neurosurgeons; the orthopedics, or bone surgeons; the heart and lung surgeons; the obstetricians; the cardiologists; and the list goes on in terms of specialists we have to respond in the emergency room. They are simply saying: I will practice my specialty, but I am not going to do it in the emergency setting. I will not sign up for what we call ``on- call'' for the emergency room or for the trauma team because if I do, my own insurance premiums will skyrocket, or I cannot get the insurance at all. So fewer and fewer specialists are volunteering for this ``on- call'' in emergency rooms.
Because of the high-risk operations they are called upon to perform in these emergency situations, neurosurgeons, the specialty of the brain and spine, have been particularly hit hard by the litigation process. According to the American Association of Neurological Surgeons and the Congress of Neurological Surgeons, between the years 2000 and 2004, that 4-year period, the national average, of medical liability premiums for neurosurgeons increased 100 percent. It literally practically doubled, from $45,915 up to $91,848.
As I mentioned a few minutes ago, in some States, neurosurgeons are now paying insurance premiums of almost $400,000 per year. That is not the cost of doing the medicine or delivering the care or of the practice or being in the operating room or paying the nurses to help you or the cost of the equipment or the cost of the drugs or the cost of your training; that is just a tax of $400,000 placed on top of all those expenses that the physicians pay to have
the opportunity to treat you if you come into the emergency room. It doesn't make sense.
It is a crisis. It is getting worse. It should be no surprise that this medical malpractice liability crisis is having a negative effect on the way these much needed specialists practice medicine. In fact, a recent survey--a fascinating survey--showed that 70 percent of neurosurgeons responding said they have had to make at least one of five practice changes. So if 100 responded, 70 said they have had to do one of these following things to narrow down or change their practice in response to the medical malpractice crisis: referred complex cases, closed their practice, moved to a different state, stopped providing patient care or retired.
Runaway lawsuits are forcing neurosurgeons and other specialists to limit emergency services. Again, it is not the doctor who is being hurt, it is the patients who are being hurt, and it is future patients, and that means potentially everybody listening to me now.
Many patients are rushed to these trauma centers. When I was on call at Vanderbilt Trauma Center as a thoracic surgeon, we had somebody actually in the hospital, or very close to the hospital, practically all the time. For heart disease, heart attacks, you need somebody there almost all the time. Why is that? Because you have a golden hour, especially for spinal disease and heart disease. Every second that goes by that you have the blood supply cut off, especially when you can open that blood supply up, the patient is being hurt.
Unfortunately, patients are having to endure longer and longer waits as these precious lifesaving minutes tick by. If you have a broken bone, a gunshot wound, frequently you might be diverted from one facility to another because of the lack of availability of a specialist or the resources in one of the hospitals. Then you have this frantic search of finding a needed specialist for that broken bone, or that gunshot wound to the heart, or that stab wound.
According to a recent study--because people say that could not be what is happening today, but it is what is happening--76 percent of emergency departments recently have diverted patients to another facility because of a lack of specialty physician coverage. Of these, over 33 percent diverted patients 6 or more times a month, and an additional 28 percent have diverted patients to other facilities 3 to 5 times a month. Over a quarter of hospitals report that the reason they have lost specialty coverage is because of medical liability concerns. These concerns simply discourage specialists from offering their services or volunteering their services for this on-call emergency coverage.
The medical litigation crisis is affecting health care, patient care, all across the country. The consequences are obvious--the consequences of death. Here is an example. According to the Palm Beach Post, a Florida woman, Mildred McRoy, suffered a hemorrhagic stroke in February. That is where you actually bleed into the brain itself, and because the skull is a fixed cavity, when you bleed into the brain, it swells and it requires an emergency response. She was rushed to JFK Medical Center in Atlantis for treatment, but JFK stopped providing around-the-clock neurosurgical coverage in July because of the medical liability crisis. In fact, there wasn't a single neurosurgeon on call in all of Palm Beach County when this occurred. Again, that shows how pervasive the impact is if you don't have specialists signing up because of high medical liability premiums. Ms. McRoy was then transported 40 miles away to North Broward Medical Center. More than 8 hours later she was operated on by a neurosurgeon but died after being in a coma for several days.
That is the story. That is why we must act. We know there is a problem, a crisis, and we know the crisis is getting worse. We know it is going to take action on this floor to reverse it. Florida is one of the 19 States the AMA considers in crisis.
In a few cases, trauma centers and emergency rooms have been actually forced to shut down--as we saw on the chart that was behind me a while ago, which the Senator from New Hampshire had shown--because either the emergency department physicians or the on-call specialists could not obtain medical liability insurance at any price whatsoever. The most infamous example occurred in the summer of 2002 when Las Vegas lost its only level I trauma center. When I use that term, level I, that is the highest level. They can take anything that comes. Level I is the most sophisticated, most prepared, most responsive level of trauma center that we have. Las Vegas lost their level I trauma center which, by the way, was one of the 10 most busiest in the country for several days, forcing residents from that major city of Las Vegas to travel over 100 miles to seek urgent care.
For me as a physician who has gone through 4 years of medical school and 8 years of medical training, what is sad and tragic is we are not getting rid of a few bad doctors. Right now we have highly qualified, highly committed physicians, women and men, who have chosen to dedicate their lives to helping their fellow man--really mankind, humanity broadly--through neurosurgery or obstetrics or heart surgery, and we are literally forcing them to leave the field they cherish, that they spent years working to become so they can help other people. These are people who are devoting their professional lives to healing others, and we are saying because of this medical litigation system, which is out of control: You are no longer going to be able to do that.
They do not want to drop these specialized services. They do not want to make themselves unavailable for emergency care. Indeed, that is why they got into the business. Tragically, and all too often, the medical litigation system, with these skyrocketing, out-of-control costs simply leaves them no choice. In the end, our health care system suffers, but it is the patients who really suffer.
The story is the same for obstetricians. Right now we know women are having a harder time finding an obstetrician. As I said earlier, one might have two or three obstetricians over one pregnancy period today because obstetricians are having to move. A few weeks ago, we brought the Healthy Mothers and Healthy Babies Access to Care Act to the floor of the Senate. That bill specifically addressed the medical liability challenges we have focusing on OB/GYNs and women and the babies they serve. We did that because all across the country, indeed in my home State of Tennessee, the current medical litigation system is forcing many OB/GYNs to simply stop delivering babies.
Floor discussions at that time several weeks ago demonstrated the crisis. It showed the extent of the crisis. There is no reason at this juncture to restate all of the arguments, but the doctor drain has gotten so bad that it is clear that women are having a harder time finding doctors to give them prenatal care and to deliver their babies.
What happened several weeks ago? Unfortunately, opponents to this needed medical liability reform filibustered the mere consideration of the bill on the floor of the Senate. We simply cannot allow people to keep their heads in the sand any longer. The crisis is real. It is time for us to act.
The crisis is getting worse every day. As a physician and as a policymaker, as someone who has had the opportunity, a real blessing, to take care of patients in the setting of trauma, the emergency room, and responding to their needs, I am simply not, as majority leader, going to sit back and allow this crisis to continue to explode.
The legislation itself we are considering, the Pregnancy and Trauma Care Access Protection Act, addresses these two areas--delivering babies and responding to emergency care. Why? Because these areas have been hit the hardest. It is common sense in medical litigation reform that will protect our patients, our families from medical negligence with fair compensation. If somebody has been negligently injured, they deserve just and fair compensation. If there are bad doctors, they need to be punished accordingly.
The problem is the overall system is broken. The overall system has these frivolous lawsuits with these runaway costs. The legislation is based on sound models that have worked in States, that have a demonstrated track record, such as California. It is supported by numerous medical specialty societies and speciality groups. The American
College of Obstetricians and Gynecologists, the American Association of Neurological Surgeons, the American Academy of Orthopedic Surgeons all support this legislation and, of course, the list goes on.
I hope opponents of reform do not make excuses. They seem to put the blame of the crisis everywhere except where it belongs--our medical litigation system. It is time to face that simple fact that we need to reform our medical litigation system. It is in desperate need of reform. It is hurting all patients. It is hurting our vulnerable patients the most.
In addition, I should add that all of this has a huge, unnecessary cost in the practice of defensive medicine, the reaction of our medical system to frivolous lawsuits. These are your health care dollars that are being wasted. These are your health care dollars that are taken from you and not being channeled back into better health care for you.
Congress should act now. I am very hopeful we will be allowed to act now by putting patients first rather than the special interests who have been so vocal in obstructing this bill.
For the sake of all Americans who will be forced to go to the emergency room this year and for the sake of all expectant mothers, I ask my colleagues to allow this debate to move forward tomorrow by voting to proceed to this critical medical litigation reform bill.
Mr. President, I yield the floor.
Mr. President, I ask unanimous consent to speak as in morning business for up to 5 minutes.
Mr. President, I see my colleague from Tennessee in the Chamber. I know shortly he will be addressing the issue under consideration, that of medical liability. In seeing him, I did want to, for a couple of minutes, talk about a very important event that will occur later this evening.
The State of Tennessee, which both he and I represent, is once again at the height of March Madness. Congratulations to the University of Tennessee Lady Vols, who will play for their seventh NCAA title tonight against a familiar foe, the University of Connecticut Huskies.
Coach Pat Summitt has maintained a championship basketball program at the University of Tennessee for three decades. This upcoming matchup, to be played in a few hours, will be the Tennessee native's 102nd NCAA tournament game. Coach Pat Summitt has led the team to an overall record of 851 wins and 166 losses in 30 seasons.
Under the watchful eye of the winningest coach in women's basketball history, the Lady Vols have advanced to the NCAA Sweet 16 and the Elite Eight in 19 of the last 23 years. Tennessee is making its third straight Final Four appearance, setting a new NCAA record with 15 such appearances. The win over Stanford in the 2004 Midwest Regional final gave the Lady Vols their 14th 30-win season in Coach Pat Summitt's 30- year career at Tennessee.
This is an especially big game for the Lady Vols seniors. During their 4-year stint at Tennessee, they have yet to clinch a national championship. They did garner a No. 1 seed for a nation leading 16th time in 2004.
It is the seniors' outstanding play that has blazed the trail to the 2004 NCAA championship game. Senior Tasha Butts scored the winning basket at the buzzer in both games of the Midwest regional. Senior LaToya Davis scored with 1.6 seconds left in Sunday night's Final 4 matchup to keep Tennessee's national championship hopes alive.
Butts, Davis, and fellow senior Ashley Robinson accounted for one- third of the team's total production in the 2004 NCAA Tournament. They have attributed 47 percent of Tennessee's points, 77 percent of its assists, and 39 percent of its three-pointers. Together these exceptional student athletes have produced 30 points, 21 rebounds, 10 assists, 4 steals, and 3 blocked shots per game.
Tennessee, although a perennial powerhouse, has not won a national title since 1998. Under the tutelage of a basketball living legend, combined with the heart of the Lady Vols' seniors, Tennessee hopes to bring the glory of women's basketball back to Rocky Top.
I wish both teams good luck tonight, and I hope to join the Tennessee Lady Vols at a White House victory celebration later this year. Go Vols.
I yield the floor.
Mr. President, I rise in strong support of S. 2207, the Pregnancy and Trauma Care Protection Act of 2004. I strongly encourage my colleagues to vote for this very important legislation. This is the…
Mr. President, I rise in strong support of S. 2207, the Pregnancy and Trauma Care Protection Act of 2004. I strongly encourage my colleagues to vote for this very important legislation.
This is the third time in the 108th Congress that I have come to the floor to argue for medical liability reform. It should not be this difficult to pass a piece of legislation that will improve access of all Americans to timely and efficient medical care, reduce the cost of hospitalization insurance and health insurance, and do something about the enormous cost of defensive medicine being practiced today by physicians throughout the country, which is contributing also to the high cost of health insurance premiums.
I start off today by telling a story of the Schweiterman family in Ohio's rural west-central Mercer County. Doctors Jim and Tom Schweiterman are brothers who, along with their father, who is retired, have delivered about 5,700 babies over the years. The family has a 113- year history of bringing babies into the world. Their great-grandfather started the current medical practice in 1896. They have never been sued for a delivery.
Yet this family is giving up delivering babies because of escalating malpractice insurance costs. Their insurance rates rose from $32,000 6 years ago to this year's quote of $78,000. Dr. Jim Schweiterman stated he would continue to deliver babies if he could just break even, but unfortunately, because of insurance costs, he cannot. Their last delivery will take place this September.
This is happening all over the United States. This legislation is a must. It is important because the effects of medical liability crises can be felt most acutely by obstetricians/gynecologists and emergency room physicians.
Data from the American Medical Association indicates that 19 States currently face a medical liability ``crisis'' and 25 States show ``problem signs.'' That is 44 States out of our 50. The doctors in these 44 States will either leave the practice of medicine entirely or move their practice to a neighboring State with better malpractice insurance rates. This phenomenon cries for national legislation.
One category of patients impacted greatly by this crisis and who we are trying to help with this legislation is women of childbearing age. One out of every 11 obstetricians nationwide has stopped delivering babies and, instead, scaled back their practices to gynecology only. In addition, one in six has begun to refuse high-risk cases. Most alarming is recent data showing that for a third year in a row, the number of obstetrics/gynecology residency training slots filled by U.S. medical students declined by 65.1 percent--the lowest level ever. People are not going into residencies in OB/GYN and in ER.
How does this affect a woman's access to care? As premiums increase, a woman's access to general care, including regular screenings for reproductive cancers, high blood pressure, cholesterol, diabetes, and other serious health risks, will decrease.
With fewer health care providers offering full services, the workload has increased significantly for those who still do. Wait time increases, putting women at risk.
Women receive less prenatal care in our current environment. Improved access to prenatal care has resulted in low infant mortality rates, an advance now threatened as OB/GYNs drop obstetrics. As you may have read, for the first time since 1958, the U.S. infant mortality rate is up. According to the preliminary data released this month by the statisticians for the CDC, the Nation's infant mortality rate in 2002 was 7 per 1,000 births. That is up from 6.8 in 2001, and some experts are attributing that to poor access to quality prenatal care.
Another group of physicians that has been significantly affected by the medical liability crisis, and that we are trying to help out with this legislation, is emergency room physicians. When patients rush to the ER, they assume the hospital will be open and doctors will be there to treat them. However, to secure affordable medical liability insurance, or to minimize their risks of lawsuits, many physicians, including neurosurgeons, orthopedic surgeons, cardiothoracic surgeons, obstetricians, and cardiologists, are no longer able to serve on-call to hospital emergency departments. In extreme cases--for example, Nevada, Florida, and Pennsylvania--emergency departments and trauma centers have been forced to shut down completely because the physicians have been unable to secure medical liability insurance at any price. It is not available.
In fact, in the past 10 years, hundreds of emergency departments have closed in the United States in such States including Arizona, Florida, Maryland, Mississippi, Nevada, Ohio, Pennsylvania, Texas, and West Virginia. Over the same period, the number of visits in the Nation's emergency departments climbed over 20 percent. While more Americans are seeking emergency medical care, emergency departments continue to lose staff and resources and are almost at the breaking point.
In addition, three in four of emergency departments diverted ambulances in the last 12 months. I will repeat that. Three of four emergency departments diverted ambulances in the last 12 months in part because no specialists were available.
Of these, one-third diverted patients six or more times a month, and an additional 28 percent diverted patients three to five times a month.
This is devastating, especially in light of the volume of patients treated by emergency room physicians. Each year there are 110 million visits to emergency rooms in the United States. Over 3.5 million ER visits are related to bone fractures. Of these, some 885,000 people have such severe fractures which can cut off or reduce blood flow to a limb or lead to shock. Patients cannot afford delays in treatment which can lead to death, amputation of a limb, loss of use of a limb, or permanent disability.
Each year, over 1 million Americans suffer a heart attack. Approximately 20 percent of heart attack victims will die. Cardiologists and cardiovascular surgeons can perform lifesaving treatments and, in some cases, can even reverse heart damage if the patients are treated promptly. Stroke patients treated within 90 minutes of the onset of their symptoms show the most improvements.
We need this legislation to keep these ERs open and fully staffed and to make sure there are no delays in treatment that can result in death or permanent injury.
How does this affect a person's access to care in the emergency room or the trauma care center? Today, in many hospitals, there is no neurosurgeon available to treat patients with major head trauma or no orthopedic surgeon to care for patients with open fractures.
According to a recent study, over 70 percent of the Nation's hospitals, again, were forced to divert patients in the past month. That is a startling statistic. According to a recent study, over 70 percent of this Nation's hospitals were forced to divert patients in this past month, in part because of lack of specialists on call.
Neurosurgeon Thomas Hawk of Columbus stopped providing trauma and emergency care in an effort to reduce his liability premiums. He also writes to me:
I see lots of patients each week from West Virginia who
cannot find neurosurgical care and are coming all the way to
Columbus, OH, to get care.
This is another problem, the transferring of patients. Because of the growing scarcity of oncall specialists, patients now wait longer for care in emergency departments. As I mentioned, many are being transferred to other facilities. This can be deadly for elderly patients experiencing heart attacks or strokes which require immediate medical attention.
In fact, the emergency physicians at Akron's two level I trauma centers--Akron is fortunate; they have two
trauma centers, Akron General Medical and Akron City Hospital--often treat patients from other areas of the State, including Youngstown and Cleveland. Youngstown is, I think, an hour away, and Cleveland is 45 minutes away. I do not see how my colleagues can claim we are not in the middle of a crisis.
When I have given speeches in the past, I have given testimonials from dozens upon dozens of physicians in Ohio who have been affected by this crisis. Every week I see many of them. But this time instead I would like to talk about some other States to show that this crisis does not just affect my home State of Ohio or States such as Nevada or Pennsylvania, but it is widespread throughout the country and should cause many of my colleagues from other States to support this legislation or explain why they cannot.
In Illinois, according to the American College of Emergency Physicians, fewer inpatient beds and staffing shortages are contributing to severe overcrowding and ambulance diversion. A 2003 report from the Metropolitan Chicago Health Care Council indicated the city's hospitals are unprepared to meet the future health care needs of their patients. According to the American Association of Neurological Surgeons, more than 15 percent of Illinois neurosurgeons have left the State in the past 2 years.
In addition, since January of 2003, 59 doctors have left the St. Clair-Madison County area. Just since October 2003, as premium renewals are considered at the end of the year, over 10 physicians have left, including 3 orthopedic surgeons.
Also in Illinois, according to a November 2002 survey, 63.5 percent of responding Illinois OB/GYNs have been forced to make changes in their practice, such as quitting obstetrics, retiring, relocating, decreasing gynecologic procedures, and no longer performing major surgery. Almost 50 Illinois OBs stopped practicing obstetrics recently, forcing 7,776 pregnant Illinois women to find new OB/GYNs to provide obstetrics care.
I don't know how we can take this situation. I have six grandchildren, and I cannot think of a worst situation than if one of them had a problem pregnancy and were told by their OB/GYN: I am sorry, I can't handle it because if I do, my insurance premiums are going to skyrocket. And yet in Illinois, 50 stopped practicing.
An orthopedic surgeon in Oakbrook Terrace, IL, told the story of a 5- year-old child who was struck by a car and sustained a fracture of the femur and small skull fracture with minimal underlying brain contusion. He stated:
Such injuries would typically be treated by . . . an
orthopaedic surgeon and then a neurosurgeon. . . . In this
case, the neurosurgeon on call would not see any patient
under 18. A pediatric orthopaedic surgeon was in attendance .
. . but without a neurosurgeon . . . a transfer to Loyola had
to be arranged. At Loyola, no pediatric orthopaedic surgeon
was available, so the adult orthopaedic trauma surgeon had
the child's leg placed in traction, inserting a pin just
above the knee in order to hang the weights which pulled on
the leg. The plan was to keep the child in traction for a few
weeks, and then place the child in a cast. The family, after
2 days at Loyola, desired transfer of care back to their home
town. The liability crisis has created a situation where this
patient had to endure two useless ambulance rides with a
broken femur, several extra days of hospitalization, and
insertion and removal of a traction pin. This waste of
resources and interference with medical care is repeated
endlessly across the nation.
In New Jersey, according to the State Hospital Association, hospital liability premiums jumped 50 percent on average in 2003, and the average annual hospital premium increased to $1.4 million.
In addition, a survey of more than 1,000 obstetricians found 23 percent had left their practices last year because they could not afford liability coverage, and only one pediatric surgeon is left in each of Ocean and Monmouth Counties, according to the State medical society. Some hospitals do not even have obstetricians on call.
Also in New Jersey, in January of 2002, there were 85 practicing neurosurgeons in the State. A little more than a year later, an estimated 20 have been forced to stop practicing. Warren County residents, including its 200-bed hospital, saw its only two neurosurgeons leave in September 2002. The closest neurosurgery center is now more than 1 hour away from these residents.
In North Carolina, the average size of liability claims increased by approximately 80 percent over 10 years. Some physicians are going out of business, leaving the State or substantially increasing prices as they pass on costs to their patients. The Senator from North Carolina, who was a Presidential candidate, should be very familiar with those statistics. The problem is especially acute for obstetricians, neurosurgeons, and emergency physicians.
In fact, in nine counties in the rural southern region, there has been a 3-percent decrease in specialty physicians, despite a nearly 8- percent increase in population between 1999 and 2002. At the same time, specialty physicians in all rural counties have increased only 1 percent, while the general population in those counties grew by 7 percent.
Neurosurgeons have been particularly affected by the medical liability crisis and many are stopping or limiting their trauma and emergency care in an effort to obtain affordable liability insurance. As a result, many hospitals, including Moore Regional Hospital in Pinehurst, NC, no longer have 24-hour neurosurgery coverage. Patients who suffer injuries during the wrong time are transferred to Chapel Hill sometimes after waiting for hours.
What about Florida? In Florida, liability premiums increased 75 percent in 2002. The average premium per physician was 55 percent higher than the national average. Emergency departments across the State are transferring patients to other hospitals because of shortages of cardiologists.
Between 1998 and 2002, 30 professional liability insurers left Florida. That is, the insurance companies have just left Florida because of the multiplicity of medical lawsuits that have been filed. Thirty-four percent of Florida physicians have stopped or reduced their emergency care coverage.
At Orlando Regional Medical Center, where Disney World is located, is one of only six level I trauma centers in the State. Think about this. This is the State of Florida, one of the fastest growing States in the United States. They have six level I trauma centers in the State. For those people who travel to Florida, I am sure that one of these days they are going to start taking that into consideration about going to the State of Florida because of the fact they do not have the trauma centers they need to take care of the people who come down from all over the country.
All of the neurosurgeons on staff at the Orlando Regional Medical Center, which is one of the six level I, have what they call ``gone bare'' and no longer have any professional liability insurance. So what has the hospital done to take care of the situation? Listen to this. The hospital has resorted to paying the doctors $4,000 per day to cover the call schedule and enable them to keep their door open to traumas.
In addition, Orlando Regional Sand Lake Hospital has had to eliminate both of its on-call orthopedics and urology coverage in its emergency department due to a lack of physician availability.
The stories from Florida are particularly egregious, so much so that I cannot understand how my colleagues from that State are not supportive of this legislation. I cannot figure it out. With what is going on in Florida, I cannot understand why the two Senators from that State cannot be supportive of this legislation.
Dr. Richard Foltz from Fort Lauderdale, FL, writes:
There are no neurosurgeons in Palm Beach to do brain
surgeries or take ER call. They try to transfer patients
across county lines all the time. I have no insurance and
have gone bare. My last premium notice was over $400,000 a
year.
According to neurosurgeon Troy Tippett, there are no longer any neurosurgeons in the Pensacola, FL, area who treat pediatric patients who are often considered high risk in liability terms. Children suffering from head and spinal injuries are airlifted more than 200 miles away. Think about that, airlifted 200 miles away to get treatment they ought to be able to get in their own community.
A Winter Park OB/GYN dropped his obstetric practice after his premiums rose from $48,000 to $100,000. At that rate, he would have to work 6 months
of the year just to pay his liability premiums. Instead he, along with four other obstetricians, gave up obstetrics altogether.
I could go on and on with one story after another about the fact we are losing surgeons and we are losing obstetricians all over this country. We are just talking about two of the specialties right now. We are concentrating on these two right now because we know they are the most in need and the shortage is most acute.
The legislation we are debating today gets us on our way to turning these statistics around. It provides a commonsense approach to our litigation problems that will keep consumers from bearing the costs of costly and unnecessary litigation while making sure those with legitimate grievances have recourse through the courts.
I would like to point out the argument that the insurance industry is ripping off doctors--and we hear that all the time on this floor--and raising rates to make up for investment losses is preposterous. I would again invite those Members who believe this to read the article I submitted for the Record during our last debate in February entitled ``Did Investments Affect Medical Malpractice Premiums,'' where it is concluded that asset allocation and investments returns have had little, if any, correlation to the development of the current malpractice problem.
I am not going to bore my colleagues today with statistic after statistic about what has happened to medical malpractice insurance companies in this country, but most of them are out of business. Most of them are limiting what they make available to doctors based on the type of medicine the doctor practices.
I would also like to point out testimony given to the Ohio Medical Malpractice Commission by a man by the name of James Hurley of the American Academy of Actuaries. In his testimony, Mr. Hurley tried to debunk a few misconceptions about the insurance industry and medical malpractice, one of which is the idea that insurers are increasing rates because of investment losses, particularly their losses in the stock market.
In response to this, Mr. Hurley states unequivocally, that in establishing rates insurers do not recoup investment losses.
I ask unanimous consent that a letter of March 26, 2004, from James Hurley be printed in the Record.
Throughout my career in public service, health care has been one of my top legislative priorities and certainly was a high priority while I was Governor of the State of Ohio and mayor of the city of Cleveland. All of us want access to quality, affordable health care. When the quality is not there, when people die or are truly sick due to negligence or other medical error, they should be compensated.
When healthy plaintiffs file meaningless lawsuits to coerce settlements or to shake the money tree to get as much as they can get, there is a snowball effect and all of us pay the price. For the system to work, we must strike a delicate balance between the rights of aggrieved parties to bring lawsuits and the rights of society to be protected against frivolous lawsuits and outrageous judgments that are disproportionate to compensating the injured and made at the expense of society as a whole.
I repeat that again. For the system to work, we must strike a delicate balance between the rights of the aggrieved parties to bring lawsuits and
the rights of society to be protected against frivolous lawsuits and outrageous judgments that are disproportionate to compensating the injured and made at the expense of society as a whole.
I have been concerned about this issue since my days as Governor, as I mentioned. In 1996, I essentially had to pull teeth in the Ohio legislature to pass my tort reform bill which would have placed caps on noneconomic and punitive damages, established proportional liability, and created a rebuttable presumption that a hospital was not negligent regarding negligent credentialing, among other provisions.
I signed the bill into law in October of 1996. Three years later, the Ohio Supreme Court ruled it unconstitutional. Had that law withstood the supreme court scrutiny--and I think today it would because we have a different supreme court--Ohioans would not be facing the medical access problems they are facing today--doctors leaving their practice, patients unable to receive the care they need, and cost of health insurance going through the roof.
Next to the economy and jobs, the most important issue facing America today is health care. In fact, it is a part of the reason why our economy is in trouble. We have too many uninsured, and those who have insurance face soaring premiums every year, making it less likely they can continue to pay for them.
In addition, employers face spiraling costs and in some cases do not even provide insurance, and those that do have been forced to increase their premiums and pass on the added costs to their employees, whose family budgets are often already stretched razor thin.
In other words, I see people in business every day who say, Senator, I want to provide health care for my employees but the cost of it has gone up to the point where I cannot afford to provide it for them. Or, in the alternative, Senator, I am going to provide it for them, but I am going to ask them to pay for more of their premiums. And, Senator, in so many instances my employees cannot pay the additional premiums, and because they cannot pay the additional premiums, they lose their health insurance.
I believe that providing the sort of commonsense approach found in the Pregnancy and Trauma Care Access Protection Act of 2004 is one way to deal with this escalating cost of health insurance in the United States. The bill will give patients greater access to care. It will provide medical liability for those physicians who provide prenatal delivery and postpartum care to mothers and babies. Patients would not have to give away large portions of their judgment to their attorneys. Truly injured parties can recover 100 percent of their economic damages. Punitive damages are reserved for those cases where they are truly justified. Doctors and hospitals would not be held liable for harm they do not cause and physicians can focus on doing what they do best, practicing medicine and providing health care.
I, again, urge my colleagues to vote for cloture so we can debate this issue and have an up-or-down vote on this legislation. We owe it to the people of this country to have a robust debate of this on the Senate floor.
I close my remarks this afternoon by reading a letter from Laurence E. Stempel, an MD from Columbus, OH. This is from the letter he sent to his patients on June 23, 2003:
On June 17, 2003, I received my professional liability
insurance rate quote for the upcoming year, and it is 64
percent higher than last year. I have seen my premiums almost
triple during the past 2 years, despite never having had a
single penny paid out on my behalf in 27 years as a
physician. Even worse, during this time the insurance company
has reduced the amount of coverage that I can purchase from
$5 million to only $1 million . . .
In other words, his insurance has gone up astronomically and he is getting about 80 percent less coverage than he had before. He said:
while jury verdicts have skyrocketed, often exceeding $3.4
million. If I were to purchase this policy, I would be
putting all of my family's personal assets at risk every time
that I delivered a baby, or performed surgery. I refuse to do
that.
I have therefore decided to retire from private practice. .
. .[T]he final day of my current liability insurance policy
[is when that will happen.]
This is not a decision I have taken lightly, but
unfortunately it has become necessary. For many of you, I
have been part of your life for years. I have delivered your
babies and helped you through some of life's most difficult
challenges. It has truly been an honor.
We have to stop this from happening in this country. We have the power to do something about it on the floor of the Senate, and it is about time we faced up to our responsibility and did something about it.
I ask unanimous consent that the entire letter be printed in the Record.
Mr. President, I rise today to urge my colleagues to cosponsor S. 1709, the Security and Freedom Ensured Act, the SAFE Act, which Senator Larry Craig and I have introduced with several of our…
Mr. President, I rise today to urge my colleagues to cosponsor S. 1709, the Security and Freedom Ensured Act, the SAFE Act, which Senator Larry Craig and I have introduced with several of our colleagues from both sides of the aisle.
The SAFE Act is a narrowly tailored bill that would revise several provisions of the USA PATRIOT Act. It would safeguard the rights of innocent Americans without impeding law enforcement's ability to fight terrorism. The SAFE Act is supported by a broad coalition of organizations and individuals from across the political spectrum.
I challenge any of my colleagues to find the broad base of political support for virtually any bill that we have found for the SAFE Act.
I voted for the PATRIOT Act. I believed then and I still believe that the act made many reasonable and necessary changes in the law. However, the PATRIOT Act contains several provisions that do not adequately protect innocent Americans from unwarranted Government surveillance. The FBI now has broad authority to obtain a ``John Doe'' roving wiretap which does not identify the person or place being tapped. The FBI has authority now to conduct sneak-and-peek searches and to seize personal records.
The PATRIOT Act was passed at a critical moment in the history of the United States. It was a moment of tragedy and fear. Now with more than 2 years of hindsight and experience, it is time to revisit this law.
I can recall--and I am sure all who followed this debate can remember--how we felt after September 11. Just a few steps away from this Chamber, I was meeting in a room with Senator Daschle and a group of Senators and we saw on television the images which every American has seared in their memory. Then someone suggested a bomb had gone off at the Pentagon. We gathered by the windows and looked down this beautiful Mall toward the Washington Monument and saw black smoke billowing across the Potomac, unaware at that moment another airplane had struck that building, killing many innocent Americans.
It was a time of great concern and great anxiety and great unity. The administration came to us and said to the Congress, Give us the tools to find the people responsible for this terrible American tragedy. Give us what we need to protect Americans and to fight the war on terrorism.
In a rare showing of bipartisan support, Democrats and Republicans came together and addressed some of the most difficult and complicated questions about Government authority and
individual freedom we have had to address in our history. I am proud to say in a short period of time there was a bipartisan consensus, a consensus which tried to work out the best way to meet the requirements of the administration and to make America safe.
Many of these provisions were worrisome. We were not certain whether we had gone too far in giving the Government more authority and Americans fewer freedoms than necessary. So we included in the PATRIOT Act sunset provisions. Basically, what that means is that over some period of time, a year or two, these provisions would expire and be subject to renewal and reapproval by Congress. Of course, at that point we would be forced to assess their impact.
Interestingly, since that day, from some quarters, the volume has grown in support of basically eliminating the sunset provisions and saying this will be permanent law and we will not revisit it. However, many have looked at the PATRIOT Act, including Senator Craig and myself, and feel there are four specific areas of the Act that should be amended by our SAFE Act. Senator Craig, a Republican, and myself, as a Democrat, reached across the partisan divide to work together on this bill. It is quite an unusual political marriage. Senator John Sununu, also a cosponsor, joked that when Senator Craig and Senator Durbin introduce a bill together, it proves one thing: One of them must not have read it.
Well, that is not true. We have both read the SAFE Act. Our cooperation on this piece of legislation speaks volumes about the need to make changes in the PATRIOT Act.
Some claim because we are at war, the American people want the Government to keep them safe, no matter what. I think they are wrong. The American people care very deeply about their freedoms. They are watching Congress carefully and they are concerned that perhaps in some areas we went too far in passing the PATRIOT Act. I have heard from a lot of my constituents. 275 communities in 39 states have passed resolutions expressing concern about the provisions of the PATRIOT Act. These communities represent close to 50 million Americans. Almost one out of every six Americans has, through their elected representatives in their communities, expressed some concern about the provisions of the PATRIOT Act.
Let me be very frank about the bill itself. The PATRIOT Act was over 130 pages long. It is very complicated. Most Americans have not read every word of it. Many Americans who may not be able to explain the exact details of the PATRIOT Act still are concerned it is restricting their freedoms unnecessarily.
Some argue this means we should not take the American people so seriously because they cannot cite specific sections of the bill. I disagree. There is no reason to dismiss these public concerns. And this is no excuse for inaction. The burden of proof is not on the American people when the Government seeks to take away their rights and liberties. The burden of proof is on the Government.
What is clear is the American people want us to strike a balance, give the FBI and law enforcement and intelligence agencies the powers they need to fight terrorism but also to protect American liberty. That is what the SAFE Act would do.
An unusual thing has occurred with the introduction of this bill. I have been on Capitol Hill for over two decades working in the House and in the Senate. I have never seen this happen before. The Bush administration announced with the introduction of the bill they would veto it. The bill has not been considered before a committee. It has not been subject to amendment in committee. It has not been debated in committee. It has not come to the floor of the House or the Senate, nor has it been subject to debate and amendment there. There is no final work product, only the initial offering by Senator Craig and myself.
Based on that and that alone, the Bush administration has said they are going to oppose this bill and they are going to veto this bill. I have never seen anything quite like that.
The Justice Department argues our bill would eliminate some PATRIOT Act powers and make it even more difficult to effectively fight terrorism. Frankly, these objections do not hold water. The SAFE Act neither repeals any provision of the PATRIOT Act nor amends pre-PATRIOT Act law. In fact, the SAFE Act retains the expanded powers created by the PATRIOT Act while placing important checks on these powers.
Senator Craig and I wrote a letter responding in detail to the Justice Department's objections to the bill and their threat to veto the bill, which has not even passed either the House or the Senate.
I ask unanimous consent that this letter be printed in the Record.
Mr. President, let me cut through some of the rhetoric and tell you what the SAFE Act does.
The SAFE Act would place reasonable checks on what are known as roving wiretaps. Typically, when the Government seeks a warrant authorizing a wiretap, its application must specify the individual and the phone that will be tapped. A recommendation on roving wiretaps came to us in the PATRIOT Act because of the obvious: There was a time and place in America when people had one telephone at work, one telephone at home, and if the Government sought to tap that telephone to find out what was going on, it was pretty obvious which telephone lines needed to be tapped. Now we live in a different world where people carry around phones in their pockets. People may have several phones.
So the Government asked for additional authority to focus on those who were engaged in telephone conversations on numerous different telephone lines. Roving wiretaps do not require the Government to specify the phone being tapped. They are designed to allow law enforcement to track targets that evade surveillance by frequently changing phones.
Before the PATRIOT Act, they were only permitted for criminal investigations, not intelligence investigations. The PATRIOT Act authorized the FBI to use roving wiretaps for intelligence purposes for the first time. I supported this. I thought it was a reasonable expansion of wiretap authority because it is important that intelligence investigators have that authority.
Unfortunately, the PATRIOT Act did not include the same limits on these powers that exist for criminal investigations. These limits would have protected innocent Americans from unjustified surveillance. It is a basic tenet of law that if you are going to tap a conversation, the Government has to be specific enough so as to protect innocent people. We should not allow the Government at any given time to impose a wiretap on a phone that anybody might use. The Government should be specific, protecting in the process the privacy of innocent people, while clearly targeting those with a wiretap who could be guilty of a crime or guilty of activities that are treasonous.
Under the PATRIOT Act, the FBI is not required to determine whether the target of the wiretap is physically present at the location being wiretapped before beginning the wiretap, as it is for criminal wiretaps. The ascertainment requirement, as it is known, ensures innocent Americans are not wiretapped unnecessarily, especially when the FBI wiretaps a public telephone.
The FBI is now permitted to obtain a John Doe roving wiretap for intelligence purposes, a sweeping authority never before authorized by Congress. A John Doe roving wiretap does not specify the person or the phone to be wiretapped. In other words, the FBI can obtain a wiretap without telling a court whom they want to wiretap and where they want to wiretap. This is a virtually limitless power.
The SAFE Act, which we have introduced, would continue to authorize roving wiretaps for intelligence purposes but would impose reasonable limits, the same limits that exist for criminal investigations. Law enforcement would be required to determine whether the target of the wiretap is physically present before beginning the wiretap. The FBI would not be able to obtain ``John Doe'' roving wiretaps. These protections would ensure that the Government does not wiretap innocent Americans.
Secondly, the SAFE Act would impose reasonable limits on sneak-and- peek searches. Sneak-and-peek searches are conducted secretly by the FBI with no notice to the target until some time after the search.
You have all seen the scene on television--maybe you are familiar with it from your community--where there is a knock on the door and a law enforcement official says: I have a warrant to search your home. Well, that is the usual course of events in criminal investigations. It is much different when it comes to sneak-and-peek searches.
The Justice Department argues that warrants for sneak-and-peek searches ``had been available for decades before the PATRIOT Act was passed,'' but such warrants were never authorized by Congress before the passage of the PATRIOT Act. Some courts permitted sneak-and-peek warrants in limited circumstances, although the Supreme Court has never ruled on their constitutionality.
In authorizing sneak-and-peek warrants, section 213 of the PATRIOT Act did not include checks and limitations on the power of the Government so as to protect innocent Americans. Courts have required the FBI to notify the target of the search within 7 days of the search. Section 213 of the PATRIOT Act, however, requires notice of the search only within ``a reasonable period,'' which is not defined. According to the Justice Department, this has resulted in delays of notice of up to 90 days, and of ``unspecified duration.''
Section 213 authorizes sneak-and-peek searches where a court finds that providing immediate notice of the search would have an adverse result. ``Adverse result'' is defined broadly. It includes circumstances ``seriously jeopardizing an investigation or unduly delaying a trial.'' This catch-all provision could arguably apply in almost every case.
Unlike many other PATRIOT Act provisions that give new surveillance powers to the FBI, the sneak-and-peek
authority does not sunset. It is permanent law.
According to a recent poll, 71 percent of Americans disapprove of the current sneak-and-peek provision in the PATRIOT Act. Last year, an overwhelming, bipartisan majority in the House of Representatives voted to repeal this section of the PATRIOT Act. The SAFE Act that we introduce would not go nearly that far. It would place reasonable limits on the FBI's ability to conduct sneak-and-peek searches, while still permitting broad use of this authority.
The SAFE Act would still authorize sneak-and-peek searches in a broad set of specific circumstances. However, it would eliminate the catch- all provision that allows sneak-and-peek searches in any circumstances.
The SAFE Act would require notification of a covert search within 7 days but would authorize a court to allow unlimited additional 7-day delays upon application by the Government. According to the Justice Department, ``the most common period of delay'' under section 213 is 7 days, so this limit that we establish is not unreasonable.
The SAFE Act would also sunset the sneak-and-peek authority, giving Congress an opportunity to take a hard look at a provision in the law that is so widely unpopular in the United States.
The third area has received a lot of attention, and it relates to the compelled production of library and personal records.
The SAFE Act would place reasonable limits on the FBI's authority to compel production of library and personal records. Before the PATRIOT Act, the FBI was authorized to seek a court order for the production of records from four types of businesses--common carriers, such as airlines and trains and buses; public accommodations, such as hotels and restaurants; storage facilities; and car rental companies. In order to obtain records, the FBI was required to convince a court it had reason to believe that the person to whom the records related was a terrorist or a spy.
Under section 215 of the PATRIOT Act, the FBI can compel production of ``any tangible things,'' not just records, from any entity, not just the four types of businesses previously covered. The FBI, under the PATRIOT Act, is only required to certify that the records are ``sought for'' a terrorism or intelligence investigation, a standard even lower than relevance. The FBI is not required to show that the documents relate to a suspected terrorist or spy.
Now, those who defend section 215 frequently claim the FBI must obtain court approval to compel production of records, but if you read section 215, you will see that the type of court approval which is authorized is a rubber stamp.
The PATRIOT Act gives the Government too much power to seize the personal records of innocent Americans who are not suspected of involvement in any terrorism or espionage. This could lead to broad fishing expeditions which waste scarce Government resources, are unlikely to produce useful information, and can infringe upon privacy rights.
The SAFE Act would retain the PATRIOT Act's expansion of the records provision to cover ``any tangible things,'' as I said earlier, and any entity. But it would reinstate the pre-PATRIOT Act standard for obtaining records, which requires individualized suspicion and increased judicial oversight. The FBI would be required to convince a court that it has reason to believe that the person to whom the records relate is a terrorist or a spy. This would protect innocent Americans and prevent fishing expeditions by the Government.
It is very important to note that in the more than 2 years since the passage of the PATRIOT Act, section 215--compelling records, as I have described--has never been used. If the authority has never been used during this time of great national concern and peril, it is difficult to understand how imposing some reasonable checks could harm the war on terrorism.
The fourth and last section of the SAFE Act relates to national security letters. The SAFE Act would impose reasonable limits on the issuance of these letters. An NSL, as they are known, is a document signed by an FBI agent requiring disclosure of financial, credit, or other personal information. It can be issued to a wire or electronic communication provider. The recipient of an NSL is subject to a gag order and cannot disclose the request to the individual whose records are being sought. An NSL does not require judicial or grand jury approval.
Before the PATRIOT Act, the FBI could issue such a letter to obtain records by certifying it had reason to believe that the person to whom the records relate is a terrorist or spy. The approval of FBI headquarters was required.
Section 505 of the PATRIOT Act allows the FBI to issue a national security letter by certifying that the records are ``sought for'' a terrorism or intelligence investigation, regardless of whether the target is a suspect. FBI headquarters approval is no longer required.
Unlike many other surveillance-related PATRIOT Act provisions, this expanded NSL authority does not sunset under the law of the PATRIOT Act.
The SAFE Act would retain the PATRIOT Act's lower standard for the issuance of NSLs and its delegation of issuing authority to FBI field offices.
It would simply clarify that a library is not a ``wire or communication service provider,'' which, from the plain meaning of the words, it is not. The FBI could still obtain information regarding e- mails and other communications originating from library computers by issuing a national security letter to the library's wire or communication service provider.
The SAFE Act would simply ensure that the FBI issues the national security letter to the service provider, which is the appropriate recipient, rather than a community library, which is not equipped to respond to such a request.
We would also sunset this NSL authority, giving Congress another opportunity to take a look at it.
We have the responsibility to give the Government the power it needs to keep us safe, but at the same time we have a responsibility to the Constitution, which we have all sworn to uphold and defend, to zealously protect the personal freedoms and liberties of American citizens.
Geoffrey Stone, a professor and former dean at the University of Chicago Law School, made this observation:
In time of war . . . we respond too harshly in our
restriction of civil liberties, and then, later, regret our
behavior. It is, of course, much easier to look back on past
crises and find our predecessors wanting, than it is to make
wise judgments when we ourselves are in the eye of the storm.
But that challenge now falls to us.
We must meet this challenge head on. As we reflect on the course of history, there has hardly been a time in the history of the Nation when we faced great threats to our safety and security when the Government did not overreach.
The greatest President, I think, who ever served us, Abraham Lincoln, from my State of Illinois, during the course of the Civil War, suspended the writ of habeas corpus, basically gathering into prison suspects without any charges. It was clearly in violation of the language of the Constitution. It was a power he assumed as Commander In Chief, and many have questioned it in the years that have followed.
During World War I, when there was real concern about outside threats to our country, we established the Alien and Sedition Acts, laws passed by Congress and signed by the President which, on reflection, went too far.
In World War II, we had the Japanese internment camps. We took perfectly innocent Japanese Americans, simply because of their ancestry, and put them in these settlement camps for lengthy periods of time, even while the children would leave the camps to serve in the Armed Forces.
During the cold war, a war that went on for decades and cost this Nation billions of dollars and created great anxiety, the McCarthy hearings and the questions of patriotism that were raised indicate that again we had gone entirely too far. The list continues. Sadly, it continues when we reflect on what we have done since September 11.
There is always a tension in our society between security and freedom. Those who want more security often argue that the Government needs more power and more authority, and individuals must give up those freedoms. Many of us believe that in surrendering
our freedoms, we are surrendering our heritage to the terrorists. The freedoms which were so carefully guarded and so zealously pursued by so many generations, freedoms which we have won with the lives of Americans in conflict time and time again, should be carefully guarded as well.
I hope we will understand that the burden of proof is not on individual Americans to come forward and prove to the Government they have a right to their freedoms and liberties. When the Government seeks to take away the freedom and liberty of an American citizen, it is the burden of the Government to prove that is necessary.
With the SAFE Act, Senator Craig and I have taken four very specific and discrete elements of the PATRIOT Act and we have said that by changing these, we will still keep America safe, but we will prevent intrusive Government activity into the privacy of individuals.
We can search the Constitution from the beginning to the end, through every amendment, and never see the word ``privacy'' in it, but courts have said repeatedly that that is what government should be all about-- protecting our privacy, only invading it in times when it is absolutely necessary to protect our safety in our community or our security as a Nation. The PATRIOT Act ended up being an allocation of power to the Government that went far beyond what was necessary for the security of our Nation and in fact invaded our rights and liberties.
We need to meet this challenge head on. It is possible to combat terrorism and to protect our freedoms. We can be safe and free. The SAFE Act demonstrates that. I urge my colleagues to join Senator Craig and myself as cosponsors.
I yield the floor and suggest the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I rise to speak about the Nation's medical litigation crisis. I begin by explaining where we are…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I rise to speak about the Nation's medical litigation crisis. I begin by explaining where we are in this process. It is the right of the majority leader to bring a bill up for debate. On the Senate side, it requires unanimous consent to have that debate. We have been denied unanimous consent to debate the medical litigation solution.
What are the options? We can have a cloture vote. We will have that tomorrow afternoon. The cloture vote requires 60 votes of approval in order to debate the medical litigation crisis solution. On most of the bills we see brought up, the unanimous consent is almost automatic. However, on this particular bill, we are not even able to debate the bill. We can debate it, but it has no effect. There can be no amendments. There can be no votes until the filibuster is broken.
What happens when the filibuster is broken? Technically there can be 30 hours of debate on that particular right to debate before the actual debate begins. Then when we actually do get to the debate, every single amendment can be filibustered and the bill can be filibustered. Supposing we make it past those roadblocks and the House passes the bill and there are differences between the two, there has to be a conference committee. At that point, there can be three more filibusters.
Our Founding Fathers intended for the Senate to be the cooling saucer for legislation. I don't think they intended it to become a stagnant pond. I do think they intended the bills would be debated and conclusions reached, there would be some time taken, but not all time taken.
We have a medical litigation crisis in this country. The system is broken. We need to start working to fix it. I urge my colleagues to vote for cloture on the Gregg-Ensign bill. It is time to stop filibustering and to start working. We should not be having this filibuster on whether to debate. We need to pass the motion to proceed and get into amendments on the bill if amendments are needed.
This is the third time in this Congress we have brought a medical litigation reform bill to the Senate. We need to pass this legislation. We need to pass some legislation that deals with this crisis. Passing this bill would be the best thing we can do to stabilize medical liability premiums in the short term, which will allow us to retain doctors in states like Wyoming, which will allow people to have access to doctors.
I proposed legislation aimed at solving this problem over the long term and I will speak to that later. But right now, we need to vote in favor of ending this filibuster against this bill so we can begin to debate the bill. I am willing to consider any amendments my colleagues in the minority might have, but we cannot consider any of their amendments until they agree to end this filibuster and begin debate on the bill.
I understand some Senators are concerned this bill would limit the ability of an injured patient to get fair compensation. This bill would do no such thing. This bill will not limit the ability of an injured patient to get fair compensation. This bill would permit full and fair compensation to patients for their economic losses. This is an important point for everyone to keep in mind. If a judge and jury were to decide a person suffered an injury due to a doctor's mistake or a hospital's negligence, that person would still be entitled, under this bill, to receive full compensation for their economic loss, including everything from rehabilitation to lost wages resulting from their injury.
I cannot stress this point strongly enough. This bill would not limit awards for economic losses. What the bill would do is place a ceiling on noneconomic damages. The bill would limit the maximum award for noneconomic damages to $250,000 in States that do not have their own limits on such awards. Noneconomic damages are those for pain and suffering.
I want to ask, How much pain and suffering do you have if you cannot even see a doctor? And if you cannot see a doctor, and you die, who do you sue? The trial lawyers? Maybe so. They are a part of the problem. I am not going to try to cover all of the parts of the problem. We are trying to fix one specific part of the problem. This bill will not take care of the whole thing.
But I want to ask you, How much pain and suffering do you have if you cannot even see a doctor? This is not primarily a city problem. You can have the problem in the city, and doctors are leaving cities as well. But in cities it gets glossed over a bit because there are so many doctors. There are so many doctors everybody anticipates they can find a doctor. Well, there are also more people in cities, so there are
more people waiting in lines to see the doctors. There is a limit to how long you want to wait in line to see a doctor, particularly if you are having an emergency.
This bill only covers two categories; one is emergency medical services, and the other is people who deliver babies. So I ask again: how long do you want to wait in the emergency room?
Is this proposal for a limit of $250,000 for noneconomic damages way out of line? I do not know. I do know California passed this limit. California put a limit of $250,000 on noneconomic damages, and it has made a difference. They are one of the few States in the Nation that is not having the problem.
Now, California, viewed by Wyoming folks, where I am from, is considered to be very liberal. So if they did it, this could not be a conservative move. If California can have a $250,000 limit, why shouldn't other places be able to? You may say: Well, States could pass their own. California did. States can. It is a very long procedure for some States. Wyoming has very limited legislative time, and then a lengthy procedure for having votes of the people before it then comes back to the legislature for additional work. So there are limitations in the States.
This can be handled on a national basis. If you hear this bill would limit an injured patient to receiving $250,000 in compensation, though, you can say that is simply false. There is no other way to put it. That contention is false.
This bill would also only apply, as I mentioned, to obstetrical services and emergency medical services. These are two of the areas of medicine where patients are in the most danger of losing their access to these services.
Once more, I ask, how many will be harmed by not getting to see a doctor? What do you do if you are a woman and you cannot see a doctor to deliver your baby? Baby doctors are particularly hard hit because the child can sue when the child reaches age, so the tail on their insurance is extremely long, and that provides additional opportunities to sue, which means additional cost for the insurance.
But we are also talking about the emergency medical services. In an emergency, as Senator Frist, the doctor of the Senate, pointed out, every single moment counts. There is, at most, a ``golden hour'' in emergency treatment. So if you have to spend that golden hour traveling 750 miles--as the Senator from Texas showed on his chart of Texas showing how far some people have to travel for specialized care--it could be too late.
Physicians are being hit with six-figure annual premiums in the medical specialties of obstetrics and trauma care. As a result, they are curtailing their practices, retiring early, or moving to States with better legal environments, because a better legal environment means lower insurance premiums.
In Wyoming, we have one of those bad legal environments. We do not have limits on noneconomic damage awards. We do not have limits, despite evidence that shows reasonable limits on noneconomic damage awards have helped control the rising cost of medical liability insurance premiums in other States.
As a result, people in Wyoming are losing access to affordable health care in their communities. The rising cost of medical liability insurance in my State of Wyoming is forcing doctors to curtail their practices or close them entirely. We have a shortage of doctors in Wyoming as it is, and the cost of medical liability insurance is making a bad problem even worse.
I want my colleagues to know we have a full-fledged medical liability crisis on our hands in this country, and particularly in Wyoming. Just last month, the largest of the three insurers in Wyoming announced they would be leaving the Wyoming market later this year. As a result, 381 doctors and 7 hospitals are going to have to find new insurance coverage. Of the two companies that are left, one of them is not writing new policies for emergency and trauma care physicians. So the few emergency room specialists we have in Wyoming soon will have only one company to choose from for their professional insurance.
These insurance company executives are not dumb people. Just as doctors are moving to States with better legal environments, so are the insurance companies.
As I mentioned, some have left Wyoming. People say, well, yes, there go those rich insurance companies. They are going to move somewhere else where they can make a lot more money. Did you know some of them are going broke? If the profit is all that prolific, why are some going broke?
One of the doctors in Wyoming was doing his calculation about whether to stay in business or not, whether to deliver babies anymore or not. He ran a calculation based on the rise in insurance premium costs he had, despite that he has not been sued at all. He found out $25 of each doctor visit goes to pay the insurance. If you are paying $100 for a doctor visit, $25 of that is going to pay for the insurance. The other $75 is not all profit either. It has to go to pay for the nurses, the supplies, the building--all of those things. But $25 of each visit goes to insurance.
I do not care which insurance companies are writing policies in my State, as long as there are some. But I do care when good doctors leave the State. Wyoming is a big State with a lot of small communities. In fact, people out here in the East cannot even comprehend the small communities we have. If you grew up in a small town, you probably got to know your family doctor pretty well. Doctors are part of the fabric of life in the small towns that dot the map of my State. It is not easy for them to pick up and leave, but that is what is happening. As hard as it is for the doctors to leave, it is even harder on the families they serve--the families who have grown comfortable with the care these doctors provide.
I commend Senators Gregg and Ensign and our majority leader, Dr. Frist, for trying again to pass a sensible short-term solution to this Nation's crisis. They have developed a bill that is focused on providing relief to the doctors who serve mothers and their babies, and the doctors who save lives in our Nation's emergency rooms.
Every day, thousands of patients depend on these doctors when it comes time to bring a new life into the world or to save a life that is already here.
I hope we can all agree to support this short-term solution that will maintain access to the services these doctors provide.
I have noticed something interesting during the debate on the issue of medical liability reform. While we have been debating the pros and cons of reform, no one is standing up to defend our current system of medical litigation. I have yet to hear a rousing defense of our medical litigation system. Even some of the lawyers in this body have agreed that frivolous lawsuits are a problem and that our medical liability system needs reform. Why aren't we hearing anyone defend the merits of our current medical litigation system? It is because it is indefensible. Our system does not work. It does not work for patients, nor does it work for their doctors.
The bill we are debating today is a good bill. It will help us stabilize insurance premiums and preserve access to critical medical services. But even the sponsors would probably admit it is a short-term measure that does not address the fundamental problems with our medical litigation system. This is an important bill, but it is just a tourniquet to stop the bleeding. It is not going to heal our broken system.
It reminds me of the town that lived on the edge of a cliff. The town had a tremendous problem because kids fell off of this cliff, and the fall killed a lot of them. They decided they needed to do something about it. After extensive meetings and committee work, they purchased the finest ambulance that could be found, and they put that ambulance at the base of the cliff. They hired the best EMTs they could get so the person could be loaded on to the ambulance and served while they got to the nearest hospital. Somebody then suggested: Why don't you just put a fence on the cliff. And they said: No, we don't do fences.
That is what we are doing with this medical litigation crisis. We are avoiding putting up the fence for the short-term solution and we are letting people fall off the cliff; then we are trying to provide them with the best possible service we can after they fall. What are we going to do when they use this fine ambulance and these great EMTs and they get to the hospital and there is no emergency room doctor? We need the fence and the emergency room doctors
too. This bill is designed to make sure there is medical liability insurance so the doctors can continue to operate.
We like to say that justice is blind. With respect to our medical litigation system, I would say that justice is absent and nowhere to be found.
Every Member of this body wants to make sure that someone who is truly injured by a medical error gets the compensation they deserve. But a number of studies have shown that many patients who were hurt by negligent actions received no compensation at all for their losses.
I have also seen studies that suggest that those who receive compensation end up with about 40 cents on every dollar in insurance premiums, once the lawyers' fees and their courtroom costs are subtracted. So the victim gets 40 cents on the dollar. Somebody else is getting the other 60 cents. I don't think that sounds fair.
What is more, studies have demonstrated the likelihood of a doctor or hospital being sued, and the result of such a suit, bears little relation to whether the doctor or hospital was at fault.
These facts led the congressionally chartered Institute of Medicine to issue a report in 2002. That report called upon Congress to create demonstration projects to encourage States to evaluate alternatives to current medical tort litigation.
In response, I have introduced a bill that would turn these expert recommendations into action. My bill, the Reliable Medical Justice Act, would authorize funding for States to create alternatives to current tort litigation. The funding would cover the costs of planning and initiating proposals. My bill would require participating States and the Federal Government to work together in evaluating the results of the alternatives as compared to the traditional tort litigation. This way all States and the Federal Government could learn from new approaches. We could see if there is not a way to get people fairly and justly compensated, compensated more quickly, and to actually receive the majority of the money, not just a small pittance.
The bill outlines some model approaches States could employ. For instance, one State might want to evaluate the idea of health care courts where judges with special expertise could hear medical cases. This concept is similar to the special courts we have for taxes, domestic violence, drugs, and other complex and emotional issues. That way we would get some fairness between cases. One person with the same kind of hurt would get compensated the same way, approximately, that somebody else with that same hurt had, not based on who picked the best lawyer or who picked the best injury--with fairness, quickness, and the victim receiving the money.
Another State might want to test an administrative approach. For instance, a State could set up classes of avoidable injuries and a schedule of compensation for them and then establish an administrative board to resolve claims related to those injuries. A scientific process of identifying preventable injuries and setting appropriate compensation for them might offer better results than the randomness of the court system.
Another State might want to provide health care providers and organizations with immunity from lawsuits if they make a timely offer to compensate an injured patient for his or her losses. This could give a health care provider who makes an honest mistake the chance to make amends financially with a patient without the provider fearing that their honesty would land them in a lawsuit.
The point of my bill is there are plenty of ideas for better ways to resolve medical disputes. One of the best ways Congress can help fix the flawed litigation system in the long term is by encouraging States to test alternatives and to learn from them.
As I speak, some States are already looking into alternatives. My State of Wyoming is one of them. Another is Massachusetts, where the Governor is working with Harvard University on an innovative project. Another is Florida, where the Governor's task force recommended projects for which my bill could provide support.
Believe it or not, both Newt Gingrich and the editors of the New York Times have endorsed this idea. If Newt Gingrich and the New York Times can agree on something, maybe we can find enough support for it in this Chamber as well.
I want to remind my colleagues that I support the Gregg-Ensign bill. It will provide some short-term relief for this medical liability crisis. We don't have time just for testing at the moment. We are losing the doctors who provide emergency care and the doctors who deliver babies. In my own State, several of the doctors have quit delivering babies because they can't afford the insurance. Others have had to cut back on the number of babies they deliver to be able to afford the insurance. That means ladies having babies are not able to get doctors with the necessary expertise.
We need short-term relief from the medical liability crisis, and I know many of my colleagues will join me in voting for it. But I know that some will vote against it. Regardless of whether you feel this is the right solution for the short term, let's acknowledge that our medical litigation system is failing us and that we must work together to find a long-term solution.
Medical lawsuits are supposed to compensate people fairly and deter future errors, but most patients don't get fair and timely compensation. There is nothing to show that lawsuits are deterring medical errors or making patients safer.
I urge Members to vote for the Gregg-Ensign bill. I also ask that Members take a serious look at S. 1518. My basic reason for introducing S. 1518 is that most patients don't want to sue their doctors. If their doctor made a mistake, they want an apology. They want to be compensated for their loss. They want the situation to be resolved quickly and fairly. I believe most physicians want the same thing. They want to apologize. They want to make amends financially.
If patients and their doctors want the same thing, what stands in the way? Our legal system, that is what.
Our legal system pits doctors against their patients. Doctors cannot apologize to their patients because admitting a mistake might end a doctor up in court, and probably would. As a result, doctors order more expensive tests and spend less time getting to know their patients-- anything to protect against a career-threatening lawsuit.
Patients feel this distrust, and they respond in kind. If a patient has a bad medical outcome, they assume their doctor was at fault, even if there was nothing their doctor would or could have done differently.
Sometimes bad outcomes happen in health care, and no one is at fault. But if a doctor doesn't feel free to say ``I am sorry'' when he or she makes a mistake, how will a patient know whether their doctor is at fault? It is hard to blame the patient for assuming the worst.
This is a fundamental flaw in the way we resolve medical disputes today. The courtroom stands between the people who matter most--the patient and the doctor. The courtroom ought to be the last resort for resolving disputes, not the only resort. Patients and doctors ought to be on the same side, working together; but fear of the legal system puts them in opposite corners and pits them against one another.
There has to be a better way. My bill would be another step toward replacing the medical lawsuits with a better and fairer system for compensating and protecting patients. But it is a long-term solution, and we do have a short-term solution, the Gregg-Ensign bill. I hope we can work together to find the long-term solution, but that we will do the short-term solution now.
Again, our debate now is whether we get to the debate the bill. Unless we have cloture tomorrow, we won't actually get to debate the short-term solution.
I want to recap and remind you that this bill doesn't limit economic damages. It will assure that we can have emergency care, that doctors who deliver babies can continue to deliver babies.
If you don't get care at all, how much pain and suffering will you have? How much injury can be caused if you cannot go to a doctor in your community and you have to travel extensively to do it?
This bill is a limit on noneconomic damages, similar to the limit in California, where the crisis has been averted. I ask my colleagues to support cloture on the motion to proceed so we can proceed to pass the Gregg-Ensign bill, so we will have a short-term solution to the medical liability crisis we face in our country, which keeps us from getting the medical treatment we need, when we need it.
I yield the floor.
Mr. President, I ask unanimous consent that I be recognized to make a statement and, upon the conclusion of my statement, the Senate recess until 2:15 as provided under the previous order. Mr.…
Mr. President, I ask unanimous consent that I be recognized to make a statement and, upon the conclusion of my statement, the Senate recess until 2:15 as provided under the previous order.
Mr. President, I am extremely disappointed that we have to be here today debating the FSC/ETI bill. The fact is, with America's economic health at risk, the bipartisan JOBS bill should have been debated and voted out of this body last month. Instead, attempts to move this jobs in manufacturing bill has been stymied. As a result, American manufacturing is not only being deprived of a competitive boost that it deserves at a time of no job creation in manufacturing but, in addition to that, U.S. exporters are stuck with a 6-percent European tax on our products going there.
This situation has festered for much too long. It has been several years since the World Trade Organization has ruled that the FSC/ETI regime did not meet our World Trade Organization obligations that this Senate and the other body agreed to a long time ago. Since then, we have known that. It is a fact. We have all known that unless we changed our current tax system, tariffs against our exports were looming.
To try to avoid these sanctions, Senator Baucus and I came together over a year ago and formed a bipartisan, bicameral working group to find a real, permanent solution to this problem.
The result is bipartisan. Remember that nothing gets done in the Senate that is not bipartisan. We have a jobs in manufacturing act before the Senate, and we will be voting on that today. This bill was passed out of my committee by a vote of 19 to 2. That means all Democrats voted for it. It provided a real and permanent solution to our FSC/ETI problems in a way which complies with our WTO obligations.
The bipartisan jobs in manufacturing act helps America's manufacturing sector. It helps us compete by giving an across-the-board 3-percentage point tax cut to all companies, large or small, that manufacture in the United States.
At a time when manufacturing is flat, this 3-percent tax cut can make a real difference to a company's bottom line perhaps bringing up enough capital and creating enough manufacturing growth to enable it or any company to hire in the manufacturing sector.
That is something every Senator would like to see. But because of political games and dilatory tactics by some in the Senate, this relief is not forthcoming.
I want Americans to understand that Senators on my side of the aisle are ready, willing, and able to provide a real shot in the arm to America's manufacturing sector. But after working so long in a bipartisan way, we are being blocked. We are blocked from providing the relief that American manufacturing deserves and needs.
In effect, this bill and the American manufacturing sector are being held hostage to Democratic demands to load this bipartisan legislation with a bunch of unrelated nongermane amendments. While some of these amendments are legitimate, others amount to nothing more than a wish list of political message amendments that have nothing to do with this very major piece of legislation. I, for one, am tired of watching us bide our time contemplating a wish list. American manufacturing needs solutions. It does not need a political wish list.
We have a good bipartisan bill before the Senate, a package that works for America's workers. But our plea for progress is met with nothing but demands for including one more item on some political wish list. You would think adults would make up their minds about what they want and that would be it.
It would be one thing if a political wish list did no harm, if it really didn't matter, or if the JOBS bill moved or not. But for manufacturing it does matter. Delay deprives American manufacturing of a much needed economic boost. Delay also inflicts real economic harm on innocent workers across the country.
The World Trade Organization has authorized the European Union to impose as much as $4 billion in tariffs in retaliation for our failure to bring our tax laws into compliance with international trade agreements that this body has already accepted--and accepted years ago.
Last month, on March 1, the European Union began implementing these sanctions by imposing an additional 5-percent tax on selected U.S. exports. This 5-percent Euro tax automatically increases by 1 percent for each month in which the United States of America remains out of compliance. Thus, when Members voted against stopping debate last month, the last time this bill was before this body, they contributed to a 20-percent increase in these tariffs because that additional 1 percent went into effect on April 1. Because of delay, then we have a 6-percent sales tax on our exports to Europe, making a lot of our businesses uncompetitive.
As you can see from this chart, these sanctions will continue to climb unless we act and act fast. In May, they rise another 1- percentage point to 7 percent and continue increasing until they reach a maximum of 17 percent in March of 2005. After that, then who knows what is going to happen. But by then we will have a lot of layoffs and people will wake up to the fact that harm is being done.
The European Union is not bound to cap retaliation at 17 percent. That is why I said: Who knows? In fact, they are scheduled to review the effectiveness of these retaliatory taxes at the end of 1 year. If the Europeans conclude that we are not in compliance, retaliation can escalate even further to a maximum of $4 billion a year.
If this sounds one sided, America wins more disputes in the World Trade Organization than we lose. We have won some major disputes against Europe. One time we won one about American beef being kept out of Europe. Europe still doesn't like to get some American beef. So we have imposed a tax on European exports coming into our country because that is the legal way of handling these disputes after it has been decided. I use that as an example. Europe has learned a lesson from the United States and they are doing to us what we have done to them. Why? Because in one case Europe did not want to abide by a decision, and in another case, we, up to now, have not abided by a decision. That is why we have the tax. It is quite obvious in most cases countries abide by these decisions. If they did not abide by these decisions, we would have chaos in international trade. We do not.
I make clear to the Members of this body: The effect of voting against stopping debate last month contributed strongly to raising tariffs on our exports by 2 percent. If cloture is not invoked this week, it is certain sanctions will escalate another percentage point, rising an overall level of 7 percent on selected U.S. exports. The core legislation should be very clear: A vote against stopping debate is a vote for higher taxes on our exports.
Which exporters will be hurt? All of them. No, not all of them, because the European Union was very careful in drawing up the sanctions list. In many cases, they chose to impose sanctions on U.S. exports that would most significantly feel the pain of the higher tax tariffs.
They are smart. Thus, highly competitive products with high profit margins are likely to find themselves on the list.
A press release from the American Forest and Paper Association dated March 2 of this year says this about European Union tariffs on wood product exports:
This is a devastating development for an industry that has
already closed more than 220 mills and laid off 120,000
workers since 1997.
Our industry works on such tight profit margins that even a
5 percent tariff will likely price many U.S. wood and paper
products out of our vital European markets. To have this
happen just as United States wood and paper products are
beginning to recover from a decade-long stump does
irreparable harm to our industry.
The European Union has chosen products they could get from other countries, hoping that the higher tariffs on U.S. exports will price our products out of the European market, to be replaced by similar products from other foreign competitors. It is important for Members of the Senate to understand the effect of pricing U.S. exports out of the European market is not just temporary. Longstanding business relationships can be permanently disrupted as European buyers scramble to replace cost-prohibited U.S. products. Even if our price may go down, those relationships that are made because of this uncompetitive atmosphere for American exporters may go on and we never gain back that market. Once a replacement from another country is found, there is no guarantee the European buyer will ever buy from the U.S. producer again. In the end, the lost European export market can be lost forever. If the Senate votes down this motion to stop debate this month, the cancer of sanctions will not only continue, it will spread.
On May 1 of this year the European Union will take in 10 more member countries. These countries will be bound by the same import-export regime as France and other European Union countries. Thus U.S. exports to those 10 countries will also face higher tariffs as they try to compete in these markets.
Now we will look at another chart that shows the list of countries that will be become part of the European Union starting May 1, 2004: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia. I hope Senators who vote against stopping debate today appreciate they are voting not only to raise the Euro tax on sensitive U.S. exports but are also voting to have that tax applied to an even broader array of countries.
Some people might argue these sanctions only hurt big companies. Do not be fooled. They are big, people might argue, and they can absorb a hit of higher tariffs. The fact is, approximately 90 percent of U.S. exporters in 2001 were small businesses with 100 employees or less. These small exporters can ill afford the sting of sanctions on their bottom line. Products impacted include jewelry, horses, dairy, fruit and vegetables, toys and games, glass and glassware, animal feed, leather goods and handbags, textile products, carpets, footwear, soap and candles, wood
products, and electric machinery. That is just a small list of 500 different products being hit. The American people are starting to take notice.
I read in part from a letter I received from the Carpet Rug Institute headquartered in Dalton, GA, stating:
The United States carpet industry produces 45 percent of
the world's carpet and is a $12 billion per year presence at
the mill.
The carpet industry is extremely competitive, both
domestically and worldwide, with profit margins cut razor
thin.
The potential of an increased duty in the form of a
punitive sanction may make the export of carpet and rug
products by any United States manufacturer in the European
Union market an economic impossibility. For the sake of the
collection of an excess tariff an entire industry may be made
to suffer.
And we are hearing:
Voices from across the country are asking relief from the
escalating Euro tax on our exports.
I will take a look at another letter signed by over 80 businesses and trade associations. These organizations that signed the letter want to emphasize the urgency of resolving the FSC/ETI export tax issue as soon as possible. Quick action on legislation is necessary to both comply with our WTO obligations and avoid or minimize retaliation against U.S. products.
. . . the European Union has increased the retaliatory
tariffs from 5 to 6 percent on as much as $4 billion per year
of American products.
These retaliatory tariffs are hurting the U.S. exports to
Europe at a time when they are just beginning to rebound in
the global economy and showing signs of renewed growth.
Moreover, the tariffs negatively impact American workers.
The letter continues:
We urge the Senate and House to pass FSC/ETI legislation
immediately and proceed to conference as soon as possible
thereafter.
Thank you . . . for doing your part to send FSC/ETI bill to
the President's desk without delay, thus minimizing the
economically devastating trade sanctions on U.S. products and
its impact on American workers who produce them.
These organizations span the entire Nation. This is not regional. Almost every State is going to be impacted by this vote this afternoon.
So let's go to the Northeast: the Virginia Forestry Association, the Associated Industries of Massachusetts, the Coalition of New England Companies for Trade, and the Greater Providence Chamber of Commerce.
From our part of the country, the Upper Midwest--the Presiding Officer is from Minnesota; I am from Iowa--we have the Detroit Regional Chamber of Commerce, the Minnesota Timber Producers Association, the Minnesota Agri-Growth Council, the Missouri Forest Products Association, and the Wisconsin Manufacturers and Commerce.
In the Pacific Northwest, we have the Pacific Coast Council of Custom Brokers and Freight Forwarders and the Softwood Export Council in the Pacific Northwest.
From the West, we have the Utah Manufacturers Association, the California Manufacturers and Technology Association, and the California Chamber of Commerce.
From the Plains States and the South, we have the Arkansas Forestry Association, the Louisiana Forestry Association, the Mississippi Forestry Association, and the Texas Forestry Association.
From the Southeast, we have the Alabama Forestry Association, the Puerto Rico Manufacturers Association, the Tennessee Chamber of Commerce and Industry, and the North Carolina Forestry Association.
So as you can see, the entire country is impacted by this European tax on our exports to that part of the world. Some of the nationally impacted associations include the Agriculture Retailers Association, the American Architectural Manufacturers Association, the American Cotton Shippers Council, the American Farm Bureau Federation, the American Iron and Steel Institute, the American Peanut Council, the American Soybean Association, the American Textile Manufacturers Institute, the Manufacturing Jewelers and Suppliers of America, the National Association of Manufacturers, the National Corn Growers Association, and the National Cotton Council. And that is just a partial list.
What communication to Members of Congress is all about is businesses crying out for relief--not for the delay that we have already had for 1 month.
Let's be clear about what is at stake. American jobs are at stake because American competitiveness is at stake.
A vote against stopping debate is a vote against tax relief for America's beleaguered manufacturing sector--tax relief that goes beyond nullifying this European tax.
A vote against stopping debate is a vote to prolong the pain across America. A vote against stopping debate is a vote to increase the European tax on American exporters yet more than the 6 percent already there. A vote against stopping debate is a vote to deprive America's small exporters--because 90 percent of our exporters are small businesses of 100 employees or less--continued access to the European market, and access they may never regain.
If my colleagues vote against stopping debate, they might as well be telling American manufacturing that the United States is closed for business; that if you want access to the European export markets, you might as well go overseas and do your business because Members of this Congress have refused to give these manufacturers the tools they need to compete.
There is an answer. Stop--stop playing political games; stop pushing political wish lists; stop jeopardizing economic recovery. Instead, start supporting the ending of debate; start bringing this bill to finality; support stopping debate and start enhancing the economic recovery that is just around the corner in America's manufacturing sector if we do not snuff it out; support stopping debate and start the process that eliminates the European tax on our exports.
The choice is clear: Vote no, and you might make a few political points but I think just for a short period of time. As this Euro-tax goes up, people are laid off and you lose political points. Vote yes to stop debate and you are guaranteed to get economic progress.
So let's put aside our political games. Stop this debate. Move to finality. Consider legitimate amendments. That is what this place is all about--legitimate amendments, not just making political comment.
I summarize this way: This is like moving the goalposts. We have heard a lot from the Democratic leadership which claims they support this bipartisan bill. That is what we are hearing. I know that is what they are telling their constituents as well. I am afraid the actions of the Democratic leadership speak louder than their words. My sense is that there is a political priority to deny President Bush an opportunity to sign a bipartisan bill either this summer or this fall. It seems that the objective is to prevent that Rose Garden signing ceremony from occurring.
Of course, the victims of this strategy happen to be those companies and those workers who are hit by this Euro-tax as it ratchets up. I hope I am wrong. But the record gives me pause. I would hope that those on the other side would put the interests of firms and workers in their States above that of partisan Presidential campaign strategy. If you look at the record, you will see dramatic movements in terms of the demands of people on the other side of the aisle to promote their political message amendments, most often nongermane.
This chart draws from a favorite activity that we have in the Midwest, for example, every time Iowa plays Minnesota, and I am talking, obviously, about football. This jobs in manufacturing bill is near the Senate goal line. Unfortunately, it seems politics is driving the other side to move the goalposts.
When we came into session in January, Senator Frist was criticized by the Democratic leadership for not moving right away this very bill, the jobs in manufacturing bill. At that time, the goalpost was clear--just 5 yards away. Then, after we were finished with the highway bill and a couple other bills, Senator Frist attempted to go to this jobs in manufacturing bill.
Much to my surprise, we were ambushed by the leadership of the other side with unrelated amendments. I thought I had an understanding with the floor manager we were going to do amendments first that were related to the bill and then move to other amendments. That agreement was not carried out. That event caught me off guard. So a second goalpost appeared. It was the overtime amendment of my colleague from Iowa.
Now, it did not matter that we had voted on it previously. It did not matter that the amendment dealt with a proposed--not final but a proposed--Department of Labor regulation. None of that seemed to matter. That amendment was, and is still, a show-stopper to this bipartisan bill. So we are at the second goalpost, as it has been moved.
The demand of the leadership of the other side keeps changing. We were talking about just a single-digit list of amendments and, for the most part, hopefully germane amendments. We are not talking about that anymore. Now, since it looks like an overtime pay vote may be in the picture, there is a goalpost yet further away.
For the first time we are hearing of other amendments--not Finance Committee jurisdiction amendments--such as an increase in the minimum wage, that are new showstoppers.
You can't finish this bill, we are told, even though we are told the substance is great. Nobody seems to disagree on the substance of this. So why can't we get a bill to the President? Even though we don't disagree on the substance, there is still a new goalpost. Heaven help us how all that turns out.
There is a final goalpost way out there; that is, getting to conference. We may move through all the goalposts, but then we may be blocked on whether we get to conference. I hope I am proven wrong in a few minutes as we vote on this measure.
If we can't get cooperation from the other side, we have a couple alternatives: One, to go on with other business; two, to look at reconciliation in late spring. I don't want to go with either of those options because we can finish this bill now. There is always a time when the Senate has goodwill between the two parties represented. That goodwill hopefully will surface just as cream surfaces on milk.
Now it is time to get the job done. I hope we can pass this FSC/ETI legislation. It is bipartisan. That is the only way you get things done in the Senate. Consequently, because it is bipartisan, we ought to get it done. And because it is bipartisan, it deserves better treatment than it has received thus far.
I yield the floor.
Mr. President, I thank the chairman of the HELP Committee for the work he has done to bring this legislation to the floor of the Senate, trying to get an up-or-down vote, or just trying to proceed to…
Mr. President, I thank the chairman of the HELP Committee for the work he has done to bring this legislation to the floor of the Senate, trying to get an up-or-down vote, or just trying to proceed to debate this bill.
For those people around the country who do not understand the way the Senate works, we have to have 60 votes to proceed to the bill on reforming our medical liability system. We have to have 60 votes to go to the bill, to amend it, and then to vote it up or down. It is a shame the Democratic side of the aisle is not even allowing us to have an up- or-down vote on this incredibly important legislation.
Today 19 States across the United States are in full-blown crisis, according to the American Medical Association, regarding medical liability. Only six States are stable because of the reforms they have in place. OB/GYNs, emergency room physicians, and trauma doctors are the hardest hit, but they are not the only ones. From 1982 to 1998, the average premium for OB/GYNs rose 167 percent. In 2002, the average premium for emergency room physicians rose by 56 percent. In Las Vegas, OB/GYNs have seen a 300- to 400-percent increase in their premiums as of late. Three years ago they paid around $40,000 a year; now they pay upwards of $200,000 a year.
To help curb the cost, OB/GYNs are limiting the number of babies they deliver, and some of them are no longer delivering babies at all and are only practicing gynecology. In fact, many of them are leaving our State altogether.
This crisis has now grown to affect our students in medical schools across the country. Nevada is really suffering because it is the fastest growing State in the country. Medical students are now avoiding high-risk specialties. Nevada's school of medicine had the lowest number of students entering obstetrics it has had since 1999. That number has decreased every year since 2000.
Nationally, half of all medical students indicate the liability crisis is a factor in their choice of specialty. For osteopathic students, the numbers are even worse. Eighty-two percent say cost and availability of insurance will influence their specialty choice. Eighty-six percent say cost and availability of insurance will determine where in the country they practice. With doctors leaving practice and no more entering the field, patients are suffering and will suffer more in the future.
Patients are what this debate is all about--not doctors or lawyers. Patients can't find access to care when they need it. For example, Nevada's only level I trauma center closed for 10 days in 2002. The center serves trauma victims over 10,000 square miles--in Nevada, parts of California, Utah, and Arizona. In 2002, this trauma center cared for 11,600 patients. Mainly, these patients suffer the most traumatic injuries such as severe car accidents, knife and gunshot wounds, and brain and spinal cord trauma.
This closure cost Jim Lawson his life on July 4, 2002. We have a picture of Jim. Jim lived in Las Vegas, and was just 1 month shy of his 60th birthday. He had recently returned from visiting his daughter in California. When he returned, he was injured in a severe car accident. Jim should have been taken to the university medical center's level I trauma center, but it was closed. Instead, Jim was taken to another emergency room to be stabilized and transferred to Salt Lake City's trauma center. Tragically, Jim never made it that far. He died that day due to cardiac arrest caused by blunt force from physical trauma.
Why was Nevada's only level I trauma center closed? Simple fact: There were not enough doctors available to provide care. There were not enough doctors because of skyrocketing medical liability premiums.
How do we know it was because of that reason? It is very simple. It reopened a week later when the State put the level I trauma center under its umbrella coverage where the maximum the State could be sued for is $50,000. The legislation we have before us caps non-economic damages at much more--$250,000--but allows recovery of economic damages to be unlimited. Remember, economic damages are for lost wages, medical bills, etc.
We have cases in California, where a law is in place that is almost identical to the legislation we are talking about today, where patients have been awarded millions of dollars in compensation. It is the out- of-control jury awards across the country that are dramatically raising our premiums.
I want to emphasize again, the level one trauma center in Las Vegas was reopened because the State of Nevada took it under its wing and said: We will protect any of the doctors who work there with a maximum liability coverage of $50,000 in damages.
Opponents on the other side argue that injured patients won't get what
they need financially if malpractice occurs as determined by a jury. Let's remember that patients can recover damages in three different ways under our bill, and in only one case, non-economic damages, are we placing a distinct limit. Economic damages would be unlimited and punitive damages are available in the cases of gross malpractice. This bill would create strong medical liability reform where patients can actually get the kind of compensation they need and they can get it sooner because they can navigate through the courts much faster. Undoubtedly, the courts will work a lot more quickly because there won't be so many frivolous cases clogging up the civil justice system.
The cases we hear about, whether it is in the trauma centers or because there are no OB/GYNs available, are tragic. It is the patients who are being hurt every day. The other side says they are trying to stand up for the little guy--the little guy who gets hurt because of medical malpractice. And we definitely should stand up for those people because there are some very tragic cases.
Without a doubt they deserve just compensation. Unfortunately, our system has swung out of balance. It is too easy to sue these days because the threat of a lawsuit and the cost of that lawsuit is so exorbitant that medical providers and their insurance companies often settle out of court. It is an absolute fact that providers and their insurers settle even in those cases they probably could win just because of the enormous expense and time.
Adding to this broken cycle are these so-called ``professional witnesses,'' for lack of a better term. When I say professional witnesses, I mean physicians who no longer are practicing. Some have practiced a little bit, but they all of a sudden become experts in fields they never practiced in. Our legislation says if someone is testifying as an expert, they need to be an expert in the field they are testifying about. In other words, you don't want somebody who is a family doctor testifying in the case that involves a pediatric neurosurgeon. You want somebody who is a specialist in pediatric neurosurgery and knows about the ins and outs of that specific practice of medicine.
Again, this legislation would allow those people who actually have had medical malpractice inflicted upon them to get through the court system faster, so maybe the ones who are truly hurt will get the compensation before they die. For many today, because the courts are so clogged up, it takes 6 to 10 years to get through the court system, and many of them die before they ever get compensation. Talk about a tragedy. So if people really want to stand up for the little guy and they want to say I want to fight for the little guy--if they want to fight for the person who actually gets hurt, let's pass legislation that allows the cases to get through the courts in a much more expeditious fashion.
Another benefit of this bill is most, if not all, of the reforms it contains will help lower the cost of health insurance in this country for everybody, so hopefully we will have more people with health insurance. If the costs are lower, more people can afford it, and we will have fewer uninsured in this country.
How many more doctors do we have to lose in Nevada and other States? Do we really want people who are not as qualified to go into some of these specialties? Do we want to start scraping the bottom of the barrel, or do we want the best and the brightest to go into these specialty fields? They always have in the past. Now they look out there and say, you know what, I am not going to be able to afford to practice. Why would the best and the brightest go into it when they say, I am going to go to 4 years undergraduate, 4 years medical school, and then I am going to do anywhere from 3 to 8 years, depending on the postgraduate training that is required in the specialty field, before I start making decent money. What people don't realize is even after these students graduate from medical school, they might make $30,000 to $40,000 doing ``slave labor,'' working 100 hours a week, while they are learning their particular field of study.
We want the best people who are willing to sacrifice all of those years and all of those hours of hard work to be able to go into those fields. At the end, yes, they should be rewarded economically, just as anyone who works hard toward entering a specific field of work. But many of them will not do it for the simple fact they are not going to be able to afford the medical liability premiums. That is why it is so critical we pass medical liability reform.
Today, we have before us a bill we have limited to provide relief to two specialties. It only covers OB/GYNs and professionals involved in the practice of emergency medicine and/or trauma medicine. We have limited it to highlight two of the most high-risk and the most severely affected areas in our health care system today.
If you don't like portions of the bill and want to change it, fine. Let's have a healthy debate and amend the bill. Let's take amendments one at a time and amend the bill and then come out with a product that will actually fix the problems we have in this country. Right now the other side, the Democratic side of the aisle--it almost boggles my mind some of the points they argue against this bill--but they won't even let us have the bill brought to the floor where it can be amended. They won't let us have a fair debate where we can amend this bill. Sadly, they are obstructionists on so many pieces of legislation this year. But at least on the other pieces of legislation that they are obstructing they are not costing lives. On this legislation, they are costing lives. Unfortunately, more and more lives will be lost in the future. When there are not enough doctors to treat patients, it costs lives.
The providers covered in this bill--OBGYNs, ER and trauma doctors--if they are not available to care for patients, people are going to die. People are going to end up in a situation like Jim Lawson's who, as we showed earlier, needed the kind of specialty care only a trauma center can provide. Right now, the doctors are not there to be able to give the patients the kind of care they need. We have to ask ourselves, what if it were one of our loved ones--not ourselves, but one of our loved ones? For instance, down in Florida, Dr. Frank Schwerin's son was injured. He is an internist. His son is a 4-year-old named Craig. Craig struck his head on the side of a swimming pool. Within minutes, he became lethargic and began to vomit. He was rushed to North Collier emergency room. The ER physician paged the neurosurgeon on call. Unfortunately, neurosurgeons in Collier County were not able to treat pediatric patients because they were too high risk. The nearest pediatric neurosurgeon was 150 miles away. In neurological trauma, every minute counts. After an hour or so of receiving what care he could, Craig was eventually stabilized. But not every child is that lucky. No parent should have to go through that wondering, does my child have the best care they can get, simply because the specialist left their area because the medical liability premiums were too expensive. I cannot tell you how many doctors who are in this situation. By the way, it is not only doctors. We are also talking nurse-midwives, EMTs, emergency and fire personnel, you name it. Throughout the health care provider system, people are affected by the out-of-control medical liability costs. But the physicians I have talked to, anecdotally, in story after story, say people were sued for the first time in their life in a case they may have had very little to do with. They walked in, gave only a consultation to another physician who was the primary doctor on the case, and then they are sued because malpractice was committed somewhere down the line by someone else on the case. Even though it had nothing to do with them, they now have to spend literally thousands of dollars defending themselves.
The system is broken. It is out of control. Our system of justice swings like a pendulum. Right now, it has swung too far in one way--in the trial lawyer's favor. We have to bring it back in favor of the patients. The patients need to come first. That is what we are talking about today in this legislation--putting patients first instead of trial lawyers.
Mr. President, I will conclude with this. I want to talk about the States that have enacted reforms versus the States that have not. I wish to give a couple of examples to put this in dollar terms so people can get their arms around it.
This chart explains it very clearly. First of all, this is an example of internal medicine, general surgery, and OB/GYN. I will focus on the OB/GYNs to keep it simple because they are affected directly by this legislation.
L.A., Denver, New York, Las Vegas, Chicago, and Miami are listed on this chart. The population shares are relatively similar. This shows the medical liability premiums in the various cities. This is a 2002 survey. Mind you, the cities with the problems are in much worse shape in 2004 than they were in 2002.
An OB/GYN pays about $55,000 a year in L.A., and around $31,000 a year in Denver. California and Colorado are two States that have had good medical liability reforms passed at the State level, and these reforms have been in place for several years. If we go to New York, Las Vegas, Chicago, or Miami--take your pick--none of these States have good medical liability reform passed. In New York, they are paying $90,000; $108,000 in Las Vegas. That number is way low. At a minimum it is $140,000. Chicago, $102,000, and Miami is over $200,000 a year. That is why doctors are leaving their practices.
One can say doctors make so much money that they can afford this. The average OB/GYN in Las Vegas makes around $200,000 a year. When $108,000 is going for medical liability coverage, you can see there is not very much left for the provider. You raise this up to $140,000, $150,000, $160,000, as many are now experiencing in my state, and there is not a lot of room left. I would also mention that with the way these doctors are getting paid at fixed rates, through managed care, Medicaid, and the like, there is not a lot of room left to afford rising premium rates. The fact is they are leaving the practice or they are limiting the amount of babies they deliver simply because they cannot afford to deliver babies. In the fastest growing cities and metro areas, that is unacceptable.
This chart shows California versus U.S. premiums from 1976 to 2000. California has the model legislation we all look at. These are the premiums. This is California, the blue line, which is very stable. There has been an increase of about 167 percent over that time, a little more than inflation, but pretty close. Look at it for the rest of the country: 505 percent.
Is medical liability reform working in California? I think the answer is pretty obvious that it is. We need a national solution. We need to say to the trial lawyers: Listen, we respect the fact you went to law school and you want to make a lot of money, but I think the system has been abused enough. It is time to put the patients first.
Let's vote for cloture today. Let's get the 60 votes needed to at least go to debate on the bill. And if my colleagues do not like the provisions of the bill, let's amend it. Let's have up-or-down votes on amendments. Let's get to final passage where we can actually correct what is wrong with the health care system in the United States by eliminating abusive lawsuits, outrageous and unwarranted jury awards, and out-of-control medical liability premiums.
I yield the floor and reserve the remainder of our time.
Mr. President, today's vote on S. 2207 is a test of the Senate's character. In the past, this body has had the courage to reject the simplistic and ineffective responses proposed by those who contend…
Mr. President, today's vote on S. 2207 is a test of the Senate's character. In the past, this body has had the courage to reject the simplistic and ineffective responses proposed by those who contend that the only way to help doctors is to further hurt seriously injured patients. Unfortunately, as we saw in the Patients' Bill of Rights debate, the Bush administration and congressional Republicans are again advocating a policy which will benefit neither doctors nor patients, only insurance companies. Caps on compensatory damages and other extreme tort reforms are not only unfair to the victims of malpractice, they do not result in a reduction of malpractice insurance premiums.
Once more, we must stand resolute.
We must not sacrifice the fundamental legal rights of seriously injured patients on the altar of insurance company profits. We must not surrender our most vulnerable citizens to the avarice of these companies.
This bill contains the same arbitrary and unreasonable provisions which were decisively rejected by a bipartisan majority of the Senate twice within the past year. The only difference is that the bill rejected in February took basic rights away only from women and newborn babies who are the victims of negligent obstetric and gynecological care, while this bill includes victims of negligent emergency trauma care as well. Broadening the bill does not make it more acceptable. On the contrary, it only expands the unfairness to an additional category of malpractice victims.
This legislation would deprive seriously injured patients of the right to recover fair compensation for their injuries by placing arbitrary caps on compensation for noneconomic loss in all obstetrical and gynecological cases and in all emergency and trauma care cases. These caps only serve to hurt those patients who have suffered the most severe, life-altering injuries and who have proven their cases in court.
They are babies who suffered serious brain injuries at birth and will never be able to lead normal lives. They are the women who lost organs, reproductive capacity, and in some cases even years of life. They are the children who are permanently injured when emergency room doctors fail to provide proper medical treatment after an accident. These are life-altering conditions. It would be terribly wrong to take their rights away. The Republicans talk about deterring frivolous cases, but caps by their nature apply only to the most serious cases which have been proven in court. These badly injured patients are the last ones we should be depriving of fair compensation.
A person with a severe injury is not made whole merely by receiving reimbursement for medical bills and lost wages. Noneconomic damages compensate victims for the very real, though not easily quantifiable, loss in quality of life that results from a serious, permanent injury. It is absurd to suggest that $250,000 is fair compensation for a child who is severely brain injured at birth and, as a result, can never participate in the normal activities of day to day living; or for a woman who lost her reproductive capacity because of an OB/GYN's malpractice; or for a patient who suffered a devastating heart attack because a negligent emergency room doctor ignored his severe chest pains and sent him home.
This is not a better bill because it applies only to patients injured by malpractice in three medical categories. That just makes it even more arbitrary.
The entire premise of this bill is both false and offensive. Our Republican colleagues claim that women and their babies must sacrifice their fundamental legal rights in order to preserve access to OB/GYN care, and that those seeking care in a hospital emergency room must leave their rights at the door. The very idea is outrageous. For those locales--mostly in sparsely populated areas--where the availability of specialists is a problem, there are far less drastic ways to solve it.
This bill is based on the false premise that the availability of OB/ GYN and trauma care physicians depends on the enactment of draconian tort reforms. If that were accurate, States that have already enacted damage caps would have a higher number of OB/GYNs providing care. However, there is in fact no correlation. States without caps actually have 28.4 OB/GYNs per 100,000 women, while States with caps have 25.2 OB/GYNs per 100,000 women.
Nor is there any correlation between access to emergency trauma care and whether a State has enacted restrictions on the compensation that malpractice victims can receive. In fact, 7 of the top 10 States identified in the Journal of the American Medical Association, March 26, 2003, as having the highest number of level I and II trauma centers per million residents do not cap damages in malpractice cases. Five of the States with the best availability of trauma centers have actually been listed as malpractice ``crisis'' States by the AMA. That is worth repeating; 7 of the 10 States whose residents have the greatest access to emergency care do not limit damages. In contrast, four States that the AMA identifies as ``doing OK,'' having satisfactory tort laws, fail to have an adequate number of trauma centers to serve their residents.
And that is only one of many fallacies in this bill. If the issue is truly access to OB/GYN and emergency care doctors, why has this bill been written to shield from accountability HMOs that deny needed medical care to a woman suffering serious complications with her pregnancy or to a child in need of emergency care after a serious accident, a pharmaceutical company that fails to warn of the dangerous side effects caused by its new drug, and a manufacturer that markets a medical device which can seriously injure the user. Who are the authors of this legislation really trying to protect?
In reality, this legislation is designed to shield the entire health care industry from basic accountability for the care it provides to women and their infant children and to patients in need of emergency treatment. It is the first step toward broader legislation which would shield the industry from accountability in all health care decisions involving all patients. While those across the aisle like to talk about doctors, the real beneficiaries will be insurance companies and large health care corporations. This legislation would enrich them at the expense of the most seriously injured patients; whose entire lives have been devastated by medical neglect and corporate abuse.
This legislation is attempting to use the sympathetic family doctor as a Trojan horse concealing an enormous array of special legal privileges for every corporation which makes a health care product, provides a health care service, or insures the payment of a medical bill. Every provision of this bill is carefully designed to take existing rights away from those who have been harmed by medical neglect and corporate greed.
In addition to imposing caps, this legislation would place other major restrictions on seriously injured patients seeking to recover fair compensation. At every stage of the judicial process, it would change long-established judicial rules to disadvantage patients and shield defendants from the consequences of their actions.
When will the Republican Party start worrying about injured patients and
stop trying to shield big business from the consequences of its wrongdoing?
If we were to arbitrarily restrict the rights of seriously injured patients as the sponsors of this legislation propose, what benefits would result? Certainly less accountability for health care providers will never improve the quality of health care. It will not even result in less costly care. The cost of medical malpractice premiums constitutes less than two-thirds of 1 percent, 0.66 percent, of the Nation's health care expenditures each year. Malpractice premiums are not the cause of the high rate of medical inflation.
In this era of managed care and cost controls, it is ludicrous to suggest that the major problem facing American health care is ``defensive medicine.'' The problem is not ``too much health care,'' it is ``too little'' quality health care.
A CBO report released in January of this year rejected claims being made about the high cost of ``defensive medicine''. Their analysis ``found no evidence that restrictions on tort liability reduce medical spending.'' There was ``no statistically significant difference in per capita health care spending between States with and without limits on malpractice torts.''
The White House and other supporters of caps have argued that restricting an injured patient's right to recover fair compensation will reduce malpractice premiums. But there is scant evidence to support their claim. In fact, there is substantial evidence to refute it. In the past few years, there have been dramatic increases in the cost of medical malpractice insurance in States that already have damage caps and other restrictive tort reforms on the statute books, as well as in States that do not. No substantial increase in the number or size of malpractice judgments has suddenly occurred which would justify the enormous increase in premiums which many doctors are being forced to pay. The reason for sky-high premiums cannot be found in the courtroom.
Caps are not only unfair to patients, they are also an ineffective way to control medical malpractice premiums. Comprehensive national studies show that medical malpractice premiums are not significantly lower on average in States that have enacted damage caps and other restrictions on patient rights than in States without these restrictions. Insurance companies are merely pocketing the dollars which patients no longer receive when ``tort reform'' is enacted.
Let's look at the facts. Based on data from the Medical Liability Monitor on all 50 States, the average liability premium in 2003 for doctors practicing in States without caps on malpractice damages, $35,016, was less than the average premium for doctors practicing in States with caps, $40,381. There are many reasons why insurance rates vary substantially from State to State. This data demonstrates that it is not a State's tort reform laws which determine the rates. Caps do not make a significant difference in the malpractice premiums which doctors pay. This is borne out by a comparison of premium levels for a range of medical specialties.
Focusing on premiums paid by OB/GYN physicians, the evidence is the same. Data from the Medical Liability Monitor shows that the average liability premium for OB/GYNs in 2003 was actually slightly higher in States with caps of damages, $63,278, than in States without caps, $59,224. It also showed that the rate of increase last year was higher in States with caps, 17.1 percent, than it was in States without caps, 16.6 percent.
This evidence clearly demonstrates that capping malpractice damages does not benefit the doctors it purports to help. Their rates remain virtually the same. It only helps the insurance companies earn even bigger profits. As BusinessWeek magazine concluded after reviewing the data, ``the statistical case for caps is flimsy,'' March 3, 2003 issue.
If a Federal cap on noneconomic compensatory damages were to pass, it would sacrifice fair compensation for injured patients in a vain attempt to reduce medical malpractice premiums. Doctors will not get the relief they are seeking. Only the insurance companies, which created the recent market instability, will benefit.
Insurance industry practices are responsible for the sudden dramatic premium increases which have occurred in some States in the past few years. The explanation for these premium spikes can be found not in legislative halls or in courtrooms, but in the boardrooms of the insurance companies themselves.
Insurers make much of their money from investment income. Interest earned on premium dollars is particularly important in medical malpractice insurance because there is a much longer period of time between receipt of the premium and payment of the claim than in most lines of casualty insurance. The industry creates a ``malpractice crisis'' whenever its investments do poorly. The combination of a sharp decline in the equity markets and record low interest rates in recent years is the reason for the sharp increase in medical malpractice insurance premiums. What we are witnessing is not new. The industry has engaged in this pattern of behavior repeatedly over the last 30 years.
Last year, Weiss Ratings, Inc., a nationally recognized financial analyst conducted an in-depth examination of the impact of capping damages in medical malpractice cases. Their conclusions sharply contradict the assumptions on which this legislation is based. Weiss found that capping damages does reduce the amount of money that malpractice insurance companies pay out to injured patients. However, those savings are not passed on to doctors in lower premiums.
Between 1991 and 2002, the Weiss analysis shows that premiums rose by substantially more in the States with damage caps than in the States without caps. The 12-year increase in the annual malpractice premium was 48.2 percent in the States that had caps, and only 35.9 percent in the States that had no caps. In the words of the report: ``On average, doctors in States with caps actually suffered a significantly larger increase than doctors in States without caps . . . In short, the results clearly invalidate the expectations of cap proponents.''
Doctors, especially those in high risk specialties, whose malpractice premiums have increased dramatically over the past few years do deserve premium relief. That relief will only come as the result of tougher regulation of the insurance industry. When insurance companies lose money on their investments, they should not be able to recover those losses from the doctors they insure. Unfortunately, that is what is happening now.
Doctors and patients are both victims of the insurance industry. Excess profits from the boom years should be used to keep premiums stable when investment earnings drop. However, the insurance industry will never do that voluntarily. Only by recognizing the real problem can we begin to structure an effective solution that will bring an end to unreasonably high medical malpractice premiums.
There are specific changes in the law which should be made to address the abusive manner in which medical malpractice insurers operate. The first and most important would be to subject the insurance industry to the Nation's antitrust laws. It is the only major industry in America where corporations are free to conspire to fix prices, withhold and restrict coverage, and engage in a myriad of other anticompetitive actions. A medical malpractice ``crisis'' does not just happen. It is the result of insurance industry schemes to raise premiums and to increase profits by forcing antipatient changes in the tort law. I have introduced, with Senator Leahy, legislation which will at long last require the insurance industry to abide by the same rules of fair competition as other businesses. Secondly, we need stronger insurance regulations which will require malpractice insurers to set aside a portion of the windfall profits they earn from their investment of premium dollars in the boom years to cover part of the cost of paying claims in lean years. This would smooth out the extremes in the insurance cycle which have been so brutal for doctors. Thirdly, to address the immediate crisis that some doctors in high risk specialties are currently facing, we should provide temporary premium relief. This is particularly important for doctors who are providing care to underserved populations in rural and inner city areas.
Unlike the harsh and ineffective proposals in S. 2207, these are real solutions which will help physicians without further harming seriously injured patients. Unfortunately, the Republican leadership continues to protect their allies in the insurance industry and refuses to consider real solutions to the malpractice premium crisis.
This legislation, S. 2207, is not a serious attempt to address a significant problem being faced by physicians in some States. It is the product of a party caucus rather than the bipartisan deliberations of a Senate committee. It was designed to score political points, not to achieve the bipartisan consensus which is needed to enact major legislation. For that reason, it does not deserve to be taken seriously by the Senate.
Mr. President, what is the parliamentary situation? Are we back on the motion to proceed? Mr. President, today I rise to speak in support of S. 2207, the Pregnancy and Trauma Care Access Protection…
Mr. President, what is the parliamentary situation? Are we back on the motion to proceed?
Mr. President, today I rise to speak in support of S. 2207, the Pregnancy and Trauma Care Access Protection Act of 2004.
This bill helps to remedy the exploding medical liability and litigation crisis in our country, which is preventing patients from receiving high-quality health care--or, in some cases, any care at all--because doctors are being driven out of practice. In fact, this crisis hits us on two fronts, preventing many Americans from getting the vital health care they need, and raising the overall costs of health care for nearly all Americans.
As you will recall, this legislation is not our first attempt to relieve this crisis in access to care. Most recently, we debated S. 2061, which failed to receive the 60 votes necessary to invoke cloture in February, and we debated S. 11 prior to that. We can ill afford to ignore the many Americans whose doctors are retiring early or restricting their practices because of rising malpractice costs.
This health care crisis is jeopardizing access to health care in my home State of Utah and around the country.
The medical liability crisis is also inhibiting efforts to improve patient safety and stifling medical innovation. Excessive litigation is adding billions of dollars in increased costs. The Congressional Budget Office estimates that total savings to Medicare, Medicaid and the Federal Employees Health Benefit Program would be $15 billion in direct health care costs by passing medical liability reform. A Department of Health and Human Services report estimates that we could save $70 billion to $126 billion in defensive medicine costs. And they are really on the conservative side. I said 20 years ago, as a former medical liability defense lawyer defending doctors, health care providers, nurses, and so forth, knowing that most of those suits were frivolous to begin with, that there was at least $300 billion in unnecessary defensive medicine. Now we all want defensive medicine. We want doctors to do everything they can to help. But I am talking about unnecessary defensive medicine, unnecessary tests, unnecessary costs, unnecessary x-rays, unnecessary MRIs, unnecessary CAT scans, unnecessary cardiovascular tests, unnecessary respiratory tests and other types of tests that are not needed but are insisted upon by doctors because they want to have in their history every possible protection.
Even the American Medical Association admits there are at least $65 billion in unnecessary defensive medicine costs. When you get the AMA to admit that, you know it probably is a lot higher. In fact, it is costing every American, because we will not do anything about getting these frivolous suits under control. It is wrecking our health care profession in this country.
The liability crisis is also reducing access to high-quality health care. The 2004 survey by Medical Group Management Association of almost 13,000 physicians found that 15.6 percent of responding groups reported that their physicians plan to retire, relocate or restrict their services over the next three years.
These numbers have been consistent in large studies done in New York, California, Colorado and my home state of Utah.
However, the equally troubling statistics are that only two percent of cases with actual negligent injuries result in claims and less than one-fifth--17 percent--of claims filed actually involve a negligent injury. In other words, the deserving injured are going uncompensated, while a great deal of litigants with spurious claims tie up our court system and cost all of us unnecessary billions of dollars.
This situation has been likened to a traffic cop who regularly gives out more tickets to drivers who go through green lights than to those who run red lights. That is clearly no way to ensure traffic safety, and we should not accept such an inefficient and inequitable method of ensuring patient safety.
These numbers are a searing indictment of the current medical liability system. I believe we can do better for the American people and the Pregnancy and Trauma Care Access Protection Act is an important step along that path. We must do better.
Today's proposed legislation addresses two areas in dire need of relief: trauma care and obstetrical care.
Many physician groups are no longer able to be oncall for hospital emergency departments. As medical care to trauma victims, especially children, is by its nature high risk, many doctors can no longer afford to treat pediatric trauma patients. The problem is also acute for women who need obstetrical and gynecological care because OB/GYN is among the top three specialties with the highest professional liability insurance premiums. This has led to many doctors leaving their practice and to a shortage of doctors in many States, including my own home State of Utah. For example, Utah physician Dr. Catherine Wheeler would have to deliver more than 60 babies each year just to pay for her medical liability insurance, which is over $70,000. Although she works 80 hours per week, after she pays her malpractice premiums and other costs, she takes home money for only 2\1/2\ months of the year.
Utah Medical Association data show that medical liability insurance premiums continue to increase rapidly, creating pressure on doctors to restrict service in Utah. In 2002, there was a 30-percent rise. Last year, premiums rose 20 percent. This year, they are projected to increase 15 percent in Utah.
Studies by both the Utah Medical Association and the Utah Chapter of the American College of Obstetricians and Gynecologists, ACOG, underscore the problem in my State.
Utah Medical Association data show that over half of the family practitioners in Utah have already given up obstetrical services or have never practiced obstetrics even though they were trained to do so. Of the remaining practitioners who still deliver babies, nearly one- third say they plan to stop providing OB services within the next decade--most within 5 years. A Utah ACOG survey found that 15 of the 106 members polled had already stopped practicing obstetrics, and 21 of the remaining 91 plan to stop within 5 years. These changes in practice, such as retiring, relocating, or dropping obstetrics because of the medical liability reform crisis, leaves almost 1,500 pregnant women in Utah without OB/GYN care.
The medical liability crisis, while affecting all medical specialties and practices, hits OB/GYN practices especially hard. Astonishingly, over three-fourths--76.5 percent--of obstetrician/gynecologists report being sued at least once in their individual careers. Indeed, over one- fourth of OB/GYN doctors will be sued for care given during their residency. These numbers have discouraged Americans finishing medical school from choosing this vital specialty.
Currently, one-third of OB-GYN residency slots are filled by foreign medical graduates, compared to only 14
percent one decade ago. OB/GYN doctors are particularly vulnerable to unjustified lawsuits because of the tendency to blame the doctor for brain-injured infants, although research has proven that physician error is responsible for less than 4 percent of all neurologically impaired babies.
Jury awards have been escalating at an alarming rate. Data from Jury Verdict Research show that the average liability award increased 176 percent from 1994 to 2001. The average jury award is $3.9 million. Over half of all awards are $1 million or more. This crisis is threatening Americans' confidence in our health care system to take care of their medical needs. Over three-fourths of Americans fear that skyrocketing medical liability costs could limit their access to care, and indeed that is already happening. AMA, the American Medical Association, data show that 19 States--19 States--have serious patient access problems, and 25 more, including my own home State of Utah, are nearing crisis.
An August 2003 GAO report concluded that actions taken by health providers as a result of skyrocketing malpractice premiums have contributed to health care access problems. These problems include reduced access to hospital-based services for deliveries, especially in rural areas.
In addition, the report indicated that States that have enacted tort reform laws with caps on noneconomic damages have slower growth rates in medical malpractice premiums and claims payments. From 2001 to 2002, the average premiums for medical malpractice insurance increased about 10 percent in States with caps on noneconomic damages. In comparison, States with more limited reforms experienced an increase of 29 percent in medical malpractice premiums each year.
Medical liability litigation directly and dramatically increases health care costs for all Americans. In addition, skyrocketing medical litigation costs indirectly increase health care costs by changing the way doctors practice medicine.
``Defensive medicine'' is defined as medical care that is primarily or solely motivated by fear of malpractice claims and not by the patient's medical condition. According to a survey of 1,800 doctors published in the journal entitled Medical Economics, more than three- fourths of doctors felt they must practice defensive medicine. A 1998 study of defensive medicine by Dr. Mark McClellan, using national health expenditure data, found that medical liability reform had the potential to reduce defensive medicine expenses by $69 billion to $124 billion in the year 2001. You can imagine what that number is today.
I remember, as a medical malpractice defense lawyer, I would tell doctors: You are just pigeons in a shooting gallery. The fact is, physicians have to have a history of treatments they have provided to their patients so they can prove that they did everything possible to prevent any real problems with their respective patients. Consequently, doctors have had to do that over the years because of the skyrocketing medical liability claims being made, a good 90 percent of which are, for the most part, spurious and frivolous.
The financial toll of defensive medicine is great, and especially significant for reform purposes, as it does not produce any positive health benefits. Not only does defensive medicine increase health care costs, it also puts Americans at avoidable risk. Nearly every test and every treatment has possible side effects; thus, every unnecessary test, procedure, and treatment potentially puts a patient in harm's way. Seventy-six percent of physicians are concerned that malpractice litigation has hurt their ability to provide quality care to patients.
What can we do to address this crisis? The answer is, plenty; and there are excellent examples of what works. Last March, HHS released a report describing how reasonable reforms in some States have reduced health care costs and improved access to quality health care. More specifically, over the last 2 years, in States with limits of $250,000 to $350,000 on noneconomic damages, premiums have increased at an average of just 18 percent compared to 45 percent in States without such limits.
California enacted the Medical Injury Compensation Reform Act, also known as MICRA, more than a quarter century ago. MICRA slowed the rate of increase in medical liability premiums dramatically without affecting negatively the quality of health care received by California State residents. As a result, doctors are not leaving California.
Furthermore, between 1976 and the year 2000, premiums increased by 167 percent in California, while they increased three times as much-- 505 percent--in the rest of the country. Now, both percentage increases are high, but 505 percent is extremely high in comparison to a very litigious State like California. Consequently, Californians were saved billions of dollars in health care costs and Federal taxpayers were saved billion of dollars in the Medicare and Medicaid Programs because of the California restraint on medical malpractice claims, especially those that are not proper claims.
No one in this body, perhaps with the exception of our colleague from Tennessee, Dr. Bill Frist, our majority leader, is more keenly aware of the defects in this system than I am. I used to try these cases, and I can say from a practical standpoint that a lot of lawyers bring cases that really are frivolous, because the cost of defending these cases can be in the hundreds of thousands of dollars.
Many insurance companies will pay off those defense costs to get rid of the case rather than take the chance a runaway jury will cost them even more. That is what is happening. It is happening in hundreds, perhaps thousands, of cases throughout the country. Most of these cases should have never been filed, however, there are a small number of cases that are very serious and it is appropriate for our judicial system to take care of them.
Before coming to Congress, I litigated several medical liability cases. I have seen heart-wrenching cases in which mistakes were made, where there was negligence. But more often, I have seen heart-wrenching cases in which mistakes were not made. Doctors were forced to spend valuable time and resources defending themselves against these frivolous lawsuits.
A recent Institute of Medicine report, ``To Err is Human,'' concluded that:
The majority of medical errors do not result from
individual recklessness or the actions of a particular group.
This is not a bad apple problem. More commonly, errors are
caused by faulty systems, processes, and conditions that lead
people to make mistakes or fail to prevent them.
We need reform to improve the health care system and processes that allow errors to occur and to identify better when real medical liability has occurred. The reform I envision would address litigation abuses in order to provide swift and appropriate compensation for malpractice victims, redress for serious problems, and ensure medical liability costs do not prevent patients from accessing the care they really need. So we need to move ahead with legislation to improve patient safety and reduce medical errors, and we need to urgently address the medical liability crisis so more women are not denied access to quality medical care because it has become too expensive for their OB/GYN doctors to continue their practice, and so we do not jeopardize trauma patients' access to urgently needed medical attention.
The Pregnancy and Trauma Care Access Protection Act of 2004 will allow us to begin ensuring that women, babies, and trauma patients get the medical care they need and deserve.
Without tort reform, juries are awarding astounding and unreasonable sums for pain and suffering. A sizable portion of those awards goes to the attorney rather than the patient. It is often estimated as high as 50 percent. The result is doctors cannot get insurance and patients cannot get the care they need.
All Americans deserve the access to care, the cost savings, and the legal protections States like California provide their residents. Today's bill will allow us to begin to address this crisis in our health care system. It will give trauma patients and women and their babies access to their doctors, and it will enable doctors to provide high quality, cost-effective medical care.
America's medical liability system is broken. It is not ensuring patient safety, and it is causing shortages of vital health care throughout the country. Congressional action to pass medical
liability reform legislation is imperative. I strongly support this legislation and I urge my colleagues to support cloture and end this filibuster that will now be the third time effective changes in these laws is being attempted. Our pregnant women deserve better. They deserve the best quality care the medical system can provide. Our trauma victims deserve better. We are finding all over the country trauma centers are either starting to shut down or severely cutting back because they can no longer afford to fight these frivolous cases. They can't function in a health care system that doesn't work. That is a tragedy, especially for those who suffer from trauma-related injuries.
I hope our colleagues will vote for cloture on this bill. I hope we can proceed and pass medical liability reform which is long overdue. I strongly support S. 2207 and urge my colleagues to do what is in the best interest of patients and health care providers throughout the country.
I yield the floor.
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Mr. President, I ask unanimous consent that the 10 minutes already allocated to me be increased to 20 minutes and include the time previously allocated to Senator Dayton of Minnesota. Mr. President,…
Mr. President, I ask unanimous consent that the 10 minutes already allocated to me be increased to 20 minutes and include the time previously allocated to Senator Dayton of Minnesota.
Mr. President, I thank the Senator from Minnesota for yielding me the 10 minutes so I might speak to this important issue this morning. I thank the Senator from Nevada for illustrating to us a serious challenge that faces America. There is no doubt in my mind, nor in the minds of those who studied this issue nationwide, that we need to do something as a nation to deal with medical malpractice liability.
It is clear that in many parts of our country, in many parts of my State, the cost of medical malpractice insurance has gone up dramatically, to the point that some doctors are moving to other States and some are retiring. That is a reality. It is a reality in Illinois. It is a reality in other States. I believe we need to do what is necessary on a bipartisan basis to grapple with this issue.
Although it will be the first time in history the Federal Government would take on the question of civil procedure and medical malpractice cases in States, frankly, it may be the only way to approach it. So I agree with my colleagues on the other side of the aisle that inaction on our part will only make this problem worse. We need to move forward. But I come today to tell you the bill before us, S. 2207, is not the right approach.
I encourage my colleagues on both sides of the aisle to look at this bill carefully. I hope they will view, as I do, this bill as an honest attempt to identify a problem but a very inadequate attempt to solve it.
Let me say at the outset that a lot has been said about emergency rooms, which are covered by this bill. Some has been said about OB/GYNs delivering babies, and that is covered by this bill. But the sponsors of this bill have not mentioned the fact that it also exempts from full liability drug companies, medical product manufacturers, insurance companies, those who make vaccines that cause problems for children. They are also included in this bill.
So much has been argued about the doctors in the emergency rooms, but the full scope of the bill has not been described, at least as long as I have been on the floor.
Let me tell you what I think is wrong with this bill. Here is what the bill says: The bill says in cities and communities across America where we rely on a jury of your neighbors and friends to come together and decide what is fair and what is just, when it comes to those lawsuits involving injuries, coming out of, for example, an emergency room treatment, no longer will a local jury decide. The case will be decided on the floor of the Senate. One hundred Senators will decide today with this bill that regardless of what happens to you or your child when you go to an emergency room for treatment, regardless of the possibility that you brought your child in as an innocent victim seeking medical care at an emergency room, and that child, the love of your life, became the victim of medical malpractice, regardless of the circumstances, we will decide on the floor of the Senate, if that child is facing a lifetime of disability, a lifetime of disfigurement, a lifetime of pain and suffering, we, the jury of the Senate, will decide it will never be worth more than $250,000 for the pain and suffering, for the disfigurement, for the incapacity they will face. That is what the bill says.
When you look at it you think, why? Why would we decide that regardless of the lawsuit, someone could never receive more than $250,000 for pain and suffering, for noneconomic losses? The argument is, unless we put a cap on the possible recovery in a lawsuit, malpractice premiums will continue to rise and doctors will not be able to afford them. That is the premise. That is the argument of this bill.
So the first thing I would like to do is question that premise. Let's look at the facts.
Here we have OB/GYN insurance premiums in States with caps, with limitations on the amount a jury can award, and without caps. In California, with caps of $250,000, called for in this bill, we see a 54-percent increase in the year 2003 in medical malpractice premiums; Oregon, with no caps, 0 percent increase; California, a 15-percent increase versus the State of Washington, 0 percent; Colorado, a 29- percent increase where they have caps and limitations on jury verdicts, and in Georgia with no caps, a 10-percent increase; New Mexico, with caps on how much the jury can award, a 52-percent increase in malpractice premiums; Arizona, right next door with no caps, no limitations, only a 14-percent increase.
So the argument that caps will bring down premiums is illustrated here to just be wrong. The premise is wrong. The argument is wrong.
Take a look at the premiums and what has happened in States without caps between 1991 and 2002 and those with limitations on jury verdicts.
Arizona in this period of time of 10 or 11 years, 3-percent increase; New York,
6 percent; Georgia, 8 percent; Washington, 27 percent. These are States without caps. Then take a look at the States with caps, with limitations on jury awards, 50-percent increase in California; 60 percent in Kansas; 82 percent in Utah; 84 percent in Louisiana. The argument is made--and I heard it on the floor this morning--that it is because so much is being paid out in terms of verdicts, and that is why premiums have gone up.
There is little or no correlation between the amounts that are paid out in verdicts and settlements and what happens to premiums. One would think there would be a direct correlation, but look at this situation. The State of Hawaii, a 527-percent increase in 10 years in the amount paid out in medical malpractice suits, a 10-percent increase in premiums; Iowa, a 87-percent increase in payouts, a 12-percent decline in the premiums charged. The case is illustrated and goes on.
The point I wish to make is if the premise of this law is establishing caps will bring down malpractice premiums these two things we can be sure of: There is no evidence to support it in many of the States with the strictest caps and, secondly, if there is any benefit to be realized by establishing caps it will be years before it is realized. That just reflects the fact that lawsuits filed for malpractice are filed years after the event occurred. Frankly, if there is any benefit to be realized, doctors and hospitals today will not see it for a long time.
The second thing that I think cries out to be said when it comes to capping what a jury can award in a case involving medical malpractice is the fundamental injustice involved in this. Here we have to go beyond the theoretical, beyond the statistical, to the real world of what happens when people show up at emergency rooms for treatment.
This is a beautiful young girl, Shay Maurin, from Hartford, WI. She was the victim of medical malpractice. On March 5, 1997, her mother took her 5-year-old daughter Shay to a local clinic because she thought something was wrong. She was not sure what it was. The physician's assistants at the clinic thought Shay might have diabetes but did not perform any tests.
The mother then took her daughter to the emergency room, where she told the emergency room doctor that the clinic thought this little girl might have diabetes and maybe that was why she was sick. She was 5 years old.
Although her daughter was exhibiting signs and symptoms of diabetes, the emergency room did not administer the standard finger-stick test, the basic test that people suffering from diabetes go through regularly to monitor their blood insulin. Instead, this little girl and her mother were sent home from the emergency room.
This little girl died of diabetic ketoacidosis the following afternoon. That occurs when a person who has diabetes is not treated with insulin. The body's blood sugar builds up to extremely high levels. The body cannot metabolize what the person eats. The body becomes severely dehydrated. Acid buildup occurs, leading to swelling of the brain and death.
The emergency room which failed to administer the most basic test, after being told by the mother that they suspected she was suffering from diabetes, was found 88-percent responsible for her death and the clinic 12-percent responsible. If we pass this bill, we have decided that the jury of the Senate would say to this little girl's family: The maximum you can recover for the losses and pain and suffering for this little girl is $250,000.
Let me tell my colleagues a story of another young girl. This beautiful little girl is Lauren Meza. On January 2, 2000, Jennifer Meza took her 2\1/2\-year-old daughter Lauren to the emergency room at the recommendation of her pediatrician.
The baby's symptoms indicated that she may have had pneumonia. The child's father was being hospitalized for pneumonia at the time she developed the symptoms. The emergency room doctor refused to perform any tests, insisting to Ms. Meza that her daughter would be fine and she should go back home.
Two days later, Ms. Meza brought Lauren back to the pediatrician, who was alarmed at her deteriorating condition. The doctor determined she needed immediate emergency care and she was airlifted to another hospital where she was treated for a condition that left her body unable to expel toxic agents and waste products, forcing them into her bloodstream. As a result of the emergency room doctor's denial of care, she is facing dialysis and a kidney transplant before she turns 10 years of age.
What this bill says is that this little girl, Lauren Maza, facing a lifetime of dialysis and ultimately a kidney transplant, would never be allowed more than $250,000 for any pain and suffering which she sustained because of the clear negligence of the emergency room doctor.
Let me tell my colleagues about a case that involves a person who is somewhat older but illustrates this point again. On January 22, 2000, Barbara Jackson complained of chest pains. Her coworkers thought she might have had a heart attack. They called an ambulance. She is from Melrose Park, IL. The ambulance driver suspected a heart attack, but the emergency room personnel waited nearly an hour to do an EKG. More egregiously, they gave her drugs that actually precipitated the heart attack. The attack was so serious this woman lapsed into a coma. She is now in a vegetative state living with her sister who cares for her every single minute of every day.
Her family believes she is capable of feeling pain. Proper medical treatment, nursing treatment, and rehabilitation will cost more than $20 million if she lives to full life expectancy, which her doctors expect.
A mistake made in an emergency room, a woman in a vegetative state for the rest of her time on Earth, and the jury of the U.S. Senate has reached a verdict. For pain and suffering, in Barbara Jackson's case, no more than $250,000.
Not only do caps not work to bring down malpractice premiums in case after case, they are fundamentally unjust and unfair. There has to be a better way. We have to deal with a standard that will bring down malpractice premiums but not at the cost of fairness and justice.
It is a simple fact of life, and one which I wish were not the case, that more and more medical errors are being committed. We cannot expect doctors and hospitals to be perfect. They are human. There are times, unfortunately, when they are negligent, when they do not meet the standard of care which we can expect of every physician and every medical provider. In those instances, they should be held accountable, as all of us are held accountable for our wrongdoing.
That accountability means they should be held responsible for the real problems they create, the damages that are created by their misconduct.
We have had so many surveys of hospitals. A study recently found that injuries in U.S. hospitals in the year 2000 resulted in 32,600 deaths. Some have estimated some 98,000 people die each year from malpractice. Only a small percentage of these cases ever end up in a lawsuit, ever end up in a trial.
We need to address this issue at three levels. First, let us make the practice of medicine safer, and we can do that. Secondly, let us deal with tort reform. I have told my friends who are trial lawyers--and I practiced law myself before I came to the Senate--we have to step up to and accept responsibility for change that will reduce the number of frivolous lawsuits and give those truly deserving their day in court. Third, insurance companies have to be held accountable for their misconduct. If they are gouging, if they are overpricing, then we, as a government, need to stand up to that industry as well.
Three parts: Reducing medical errors, tort reform, and insurance reform are the way to approach it. I say to my colleagues on the other side of the aisle, join me in a bipartisan effort now to go beyond this issue of caps, which will not solve the problem, caps that are fundamentally unfair, and let us talk about real solutions.
Think about this bill that is before us for a moment. This bill says that if one is brought to an emergency room because they were in serious trouble and medical conditions are such that warrant it, they will be limited in how much money one can recover if they are an innocent victim of medical malpractice. However, if one is admitted to
the hospital, through the front door and not the emergency room, these limitations would not apply.
Think of it as well from the OB/GYN point of view. It is true that OB/GYN premiums have gone up astronomically in some areas, and we have to zero in on that, but we are saying someone who is a victim of malpractice by an obstetrician gynecologist will have a limitation on how much they can recover while someone else in the same hospital being operated on by a doctor with a different specialty will not be subject to these limitations. That is just fundamentally unfair.
I think what we need to do is open the door for conversation, but first we need to close the door on this concept. This is not the right approach.
I have met over the last several months with scores of doctors and hospital administrators in my State, and I say to them in all seriousness and sincerity that we have a problem in Illinois, as well as a national problem.
I have invited Members to come to the table after this legislation is defeated today and sit down in an honest, bipartisan fashion to look for solutions that will solve this problem. I believe we can find it.
The Senator from South Carolina who is presiding has joined me in bipartisan legislation that really tries to approach this from a new innovative, creative, and positive point of view that does work. I think we can achieve that goal. But to achieve it we need to bring the medical professionals into the room along with those who are representing the victims of medical malpractice. Once that conversation takes place, if it takes place in good faith, I am confident we can come up with solutions.
I urge my colleagues to vote against the motion for cloture on proceeding to this bill. It has not been subjected to hearings. It includes things which were not talked about on the floor--protection for insurance companies, protection for pharmaceutical companies and medical device manufacturers. Let us get down to the business of trying to solve this problem and doing it in a fashion that is reasonable and effective and bipartisan.
I reserve the remainder of my time.
Mr. President, it was 1 year ago today that the voters in my home State of Texas passed proposition 12, a referendum that paves the way for substantive medical liability reform and provides hope that…
Mr. President, it was 1 year ago today that the voters in my home State of Texas passed proposition 12, a referendum that paves the way for substantive medical liability reform and provides hope that quality health care will win out over the interests of a handful of politically powerful personal injury lawyers.
The people of Texas spoke, and the doctors across the State are reopening their doors. In fact, two obstetricians in the small town of Fredericksburg, TX, announced their return with an advertisement in the local newspaper that proclaimed: ``We're Back!''
One of these obstetricians, Dr. David Cantu, had been working for more than 10 years as an obstetrician with no claims, but he and his partner had to quit practicing obstetrics because of the cost of insurance. Dr. Cantu's overhead was hitting 100 percent, and he had a 3-month stretch with no pay.
As soon as they stopped delivering babies, the practice saw an immediate decrease in insurance costs, but their patients were forced to travel elsewhere to have their babies delivered. This was doubly difficult for them considering the fact that 70 percent of Dr. Cantu's patients are Medicaid patients, and 40 percent were Spanish speaking.
But with proposition 12, Dr. Cantu and his partner are now able to deliver babies again. Proposition 12 has placed a $250,000 cap on noneconomic damages in medical liability cases. When Dr. Cantu was asked, How has that helped you and your patients, he said:
Because now I come out ahead instead of paying to be an
Obstetrician. Prop. 12 made the practice of Obstetrics
affordable.
When it comes to health care, I strongly believe the proper role of Government is to protect the freedom of all of us to improve our own health and to deal with our own health care needs. We must ensure that decisions about a patient's health are not made by the Government but by individuals and families; that is, between the patient and his or her doctor.
Patients and their doctors--not lawyers, not bureaucrats--should be trusted to decide what treatment is best for them. I strongly believe when people have good choices in health care, it ultimately translates into higher quality and better care.
Dr. Cantu's story shows us that our current medical liability system is the biggest challenge we face in this regard. Our current system is wasteful and dangerous, and it too often serves the interests of greed, not justice and common sense. The overall results of our current system are sky-high costs for liability insurance, costs that have created a crisis of enormous proportions--a crisis that is threatening quality of care, diminishing access to care, and exploding the cost of care.
But there is hope. Evidence is mounting that reforms such as proposition 12 in the State of Texas are working. We can see that in real terms and not just because of advertisements of doors to doctors' offices reopening. Even though these reforms have been in place for only 1 year in Texas, early results are encouraging.
After a decrease in Texas insurance carriers from 17 to 4--that is the number of medical liability insurance companies that would actually insure a physician or a health care provider against medical liability claims--proposition 12 has created an environment where 10 different carriers have now sought reentry into the Texas market to write physician policies. The largest insurer in the State, Texas Medical Liability Trust, reduced its premiums by 12 percent. A Texas hospital association survey shows, for hospitals in our State, a 17-percent reduction across the board.
Why this response? Lawsuits against hospitals are down 70 percent from last summer's race to the courthouse, when Texas courts were flooded by personal injury lawyers with more than 10,000 medical malpractice lawsuits, shortly before voters approved proposition 12.
Let me repeat that because it is important for everyone to understand. Knowing that proposition 12 was likely to pass, personal injury trial lawyers filed more than 10,000 medical liability lawsuits shortly before the reform was to take effect in order to beat the people's mandate that health care should be more widely available and, certainly, medical liability insurance available more readily to more physicians. Why? To help doctors, to help hospitals and the corporations that own those hospitals?
Everybody knows that corporations don't practice medicine, and the only way you can get your baby treated or yourself treated is to have a doctor who will see you. So what we are talking about is not a benefit directly to doctors or the hospitals; what we are talking about is a benefit to patients--in other words, to all of us--as a result of this commonsense reform.
The best news is that doctors such as David Cantu are responding. In Austin, 16 new obstetricians have started their practice in the last year, reversing a trend over the previous 2\1/2\ years when Austin lost 16 obstetricians due to the medical liability crisis. Driscoll Children's Hospital is recruiting close to a dozen new pediatric specialists, three neonatologists, two cardiologists, a hematologist, a general surgeon, and four other specialists, something they could not do under the earlier environment.
These successes are not limited to just the State of Texas. A recent study by the Rand Institute found that California's 1975 medical liability reform, known as MICRA, reduced defendants' liabilities by 30 percent and plaintiffs' attorneys fees by 60 percent. That was a means to an end because the result in California has been that insurance rates have actually risen at a rate of about two-thirds of what the rate has been in the rest of the Nation. These are signs that reforms such as proposition 12, or California's MICRA, have worked. Yet still we find that in the U.S. Senate today, we are unable to get a solution for families all across the Nation in States that have no such reforms in place. This is a national problem and it calls for a national solution.
I want to say a few words about our Nation's need for serious medical liability reform and the U.S. Senate's appalling refusal to address that problem with real solutions. Unfortunately, special interests continue to win out over mainstream America, and our health care system continues to bear the burden of costly and frivolous lawsuits. We see that medical care and medical liability insurance rates continue to grow unabated.
I couldn't help but notice this quote from Senator Kerry at the Democratic National Convention in his acceptance speech. He noted specifically:
Since 2000, four million people have lost their health
insurance. Millions more are struggling to afford it. You
know what's happening. Your premiums, your co-payments, your
deductibles have all gone through the roof.
I am actually very pleased to hear this acknowledgment by the Senator from Massachusetts, recognizing the seriousness of our situation. He is right about one thing: These are real problems, and they deserve real and immediate solutions.
With all due respect, he and some of our colleagues in the Senate continue to avoid the most obvious and primary cause of escalating health care costs and the decrease in availability of medical liability insurance and the consequential lack of access to real health care-- that is, runaway lawsuits.
Three times in the 108th Congress alone Republican leadership has brought meaningful medical liability reform to the Senate which, if passed, President Bush would readily sign into law. This chart shows three different bills that have been brought to the Senate floor by the majority leader: S. 11, the Patients First Act of 2003; S. 2061, the Healthy Mothers and Healthy Babies Access to Care Act; and S. 2207, the Pregnancy and Trauma Care Access Protection Act.
Over a year ago, the majority leader brought forth a comprehensive reform proposal known as S. 11. Earlier we brought forth two additional proposals which dealt more with specialty practices such as obstetricians who deliver babies and emergency room physicians, hoping that even if we were not able to get broad medical liability reform, we might be able to achieve it for those specialties that are most acutely affected and where access to health care hits the hardest.
I do not begin to claim that the legislative proposals we have advanced were the only solution to the problems. Indeed, I applaud other reforms. But it is clear, as this chart indicates, that each time we have tried to come up with a solution, we have been denied an opportunity to go forward with the debate and to have amendments, if any Senator wished to offer amendments, and to try to get good, commonsense medical liability reform that would increase access to health care.
I don't believe medical liability reform is the only problem that confronts our health care system today. I applaud many other reforms that have been proposed by the President and others, including the innovation of health savings accounts, which were part of the Medicare bill we passed about a year ago, and the use of new technology to make the practice of medicine more efficient and to reduce the likelihood of medical errors. These and other reforms do represent commonsense proposals that hold great promise, not only for improved health care but to make sure the cost of health care remains affordable and thus more available to more people.
Above all, it is clear that any of these bills would offer much- needed relief to the health care system brought to a state of crisis by politically powerful personal injury lawyers in as many as 23 States across the country. I find it sad that any special interest group--and the Senators voting according to the wishes of those groups and not the American people, a list that includes the Democratic nominees for President and Vice President--has denied us the opportunity on each of these three occasions to begin the debate, begin the legislative process, and hopefully accomplish meaningful reform and improve access to health care. But we were denied even the chance to debate and vote on the issue, even when a bipartisan majority of this body agrees that we need reform and we have the
tools to effect that reform within our reach. Their choice to deny us that opportunity was not ours; it was theirs. To this day, those who obstruct meaningful medical liability reform leave the American people with the sad reality of the status quo, a broken civil justice system and little hope for a national solution.
While the problem persists in all aspects of our health care system, the crisis is particularly acute among specialty doctors--for example, neurosurgeons, brain and spinal surgeons, emergency room physicians, and, notably, obstetricians and gynecologists, the doctors who actually care for women who are pregnant and who deliver their babies. A handful of powerfully connected personal injury lawyers is seriously jeopardizing patient care for women and their newborns. I and others find that completely unacceptable.
Across the country liability insurance for obstetrician/gynecologists has become prohibitively expensive. Premiums have tripled and quadrupled, leaving OB/GYNs without the ability to get liability insurance at all as insurance companies fold or stop insuring doctors.
This last week, the Washington Post wrote an article on a malpractice insurer, known as NCRIC, right here in the District of Columbia, which is ``feeling the squeeze,'' losing over $4 million in 2003 alone.
This chart shows that 23 States are on red alert--in a medical liability crisis--while just 3, including Texas, are in crisis pending effect of reform. Others noted by the hash marks on the chart are those where the crisis is still brewing.
These skyrocketing medical malpractice premiums literally are driving physicians out of business and leaving Americans without access to quality health care. Between 2002 and 2003, rates rose as much as 40 percent in some States, with the impact hitting specialty doctors such as obstetricians/gynecologists the hardest.
When an OB/GYN cannot find or afford medical liability insurance, they are forced to stop delivering babies, forced to curtail surgical services, or close their doors altogether. Now more than one in seven across the Nation is simply leaving the profession and walking away.
For example, in my home State of Texas, the entire obstetrics unit at Spring Branch Medical Center in Houston was forced to close just prior to an expected 2003 increase of 67 percent in the hospital's medical liability premiums.
Today, because the effects of proposition 12 have not been fully realized, out of 254 counties in Texas--one of the States in crisis pending effect of the reforms--more than half of the counties in Texas simply do not have available a single doctor who specializes in delivering babies. In many cases, doctors simply chose to stop serving certain patients to avoid costly litigation; or even if they were not involved in litigation, they were still forced to pay ultra-high medical liability premiums, making it simply impossible to make ends meet.
One rural obstetrics/gynecologist who serves mostly Medicaid, or poor patients, was forced to stop seeing high-risk patients altogether because his insurance premiums had increased 300 percent.
The effects are felt almost entirely by the poorer members of our society who depend, of course, on Medicaid to help them with their health care premiums.
Perhaps most disconcerting of all, however, is the trend of doctors engaging in defensive medical practice. When we ask why is the cost of health care going up so dramatically and why are health care premiums paid by employers or by self-employed persons going up so dramatically, it is in part because of the effect of defensive medicine--physicians who provide tests and services, not because they think it is medically indicated but because they simply want to defend themselves against a potential lawsuit.
According to the Department of Health and Human Services, a majority of doctors say they recommend invasive procedures and painful tests they consider unnecessary in medical terms in hopes of avoiding litigation. That is the point we have reached.
The most basic principles of justice require that we embrace national reform as soon as possible, striving to protect access both to the courts and to our hospitals and to physicians. As a matter of principle, those who are wrongly injured deserve their day in court; there is no question about that. We all agree. If a doctor is responsible or negligent, he or she should be held fully accountable. But the sad fact is that the current system does not foster accountability. Instead, it has nearly destroyed any hope for quality and affordable health care in America. The time for that to change is now and we must change it.
It is time for Congress to act and to provide a national solution so all Americans can benefit from medical liability reform, so all Americans can open their newspapers and see an advertisement from their neighborhood doctor, who may have once been forced out of his practice now happily, proclaiming: We are back.
I yield the floor.
I thank the Chair. Iraq Madam President, I have watched with heavy heart and mounting dread as the ever precarious battle to bring security to postwar Iraq has taken a desperate turn for the worse in…
I thank the Chair.
Iraq
Madam President, I have watched with heavy heart and mounting dread as the ever precarious battle to bring security to postwar Iraq has taken a desperate turn for the worse in recent days and hours. Along with so many Americans, I have been shaken by the hellish carnage in Fallujah and the violent uprisings in Baghdad and elsewhere. The pictures have been the stuff of nightmares, with bodies charred beyond recognition and dragged through the streets of cheering citizens. And in the face of such daunting images and ominous developments, I have wondered anew at President Bush's stubborn refusal to admit mistakes or express any misgivings over America's unwarranted intervention in Iraq.
During the past weekend, the death toll among America's military personnel in Iraq topped 600--including as many as 20 American soldiers killed in one 3-day period of fierce fighting. Think of it. Many of the dead, most, perhaps, were mere youngsters--mere youngsters--just starting out on the great adventure of life. But before they could realize their dreams, they were called into battle by their Commander in Chief, a battle that we now know was predicated on faulty intelligence and wildly exaggerated claims.
As I watch events unfold in Iraq, I cannot help but be reminded of another battle, at another place and another time, that hurtled more than 600 soldiers into the maws of death because of a foolish decision on the part of their commander. The occasion was the Battle of Balaclava on October 25, 1864, during the Crimean war, a battle that was immortalized by Alfred Lord Tennyson in his poem ``The Charge of the Light Brigade.''
``Forward, the Light Brigade!''
Was there a man dismay'd?
Not tho' the soldier knew
Someone had blunder'd:
Their's not to make reply,
Their's not to reason why,
Their's but to do and die:
Into the valley of Death
Rode the six hundred.
Tennyson got it right--someone had blundered. It is time we faced up to the
fact this President and his administration blundered as well when they took the Nation into war with Iraq without compelling reason, without broad international or even regional support, and without a plan for dealing with enormous postwar security and reconstruction challenges posed by Iraq. And it is our soldiers, our men and women, our own 600 and more who are paying the awful price for this administration's blunder.
In the runup to the war, this President and his advisors assured the American people we would be greeted as liberators in Iraq. Yes, this Vice President, Vice President Cheney, assured the American people we would be greeted as liberators in Iraq. For a brief moment, that outcome seemed possible. One year ago this week, on April 9, 2003, the mood in many corners of the Nation was euphoric as Americans witnessed the fall of Baghdad and the jubilant toppling of a massive statue of Saddam Hussein. Less than 4 weeks later, President Bush jetted out to an aircraft carrier parked off the coast of California to cockily declare to the world the end of major combat operations in Iraq. For those with tunnel vision, the view from Iraq looked rosy. Then Baghdad had fallen, Saddam Hussein was on the run, and U.S. military deaths had been kept to a relatively modest number, a total of 138 from the beginning of combat operations through May 1, 2003.
But the war in Iraq was not destined to follow the script of some idealized cowboy movie of President Bush's youth, where the good guys ride off into a rose-tinted sunset, all strife settled and all wrongdoing avenged. The war in Iraq is real. And as any soldier can tell you, reality is messy and bloody and scary.
Nobody rides off into the sunset for fear the setting sun will blind them to the presence of the enemies around them. So the fighting continues in Iraq. It is going on right now, right this minute, long past the end of major combat operations, and the casualties have continued to mount even now, even this hour, even this minute. As of today, more than 600 military personnel have been killed in Iraq and more than 3,000 wounded.
Now after a year of continued strife in Iraq comes word that the commander of forces in the region is seeking options to increase the number of U.S. troops on the ground, if necessary. Surely I am not the only one who hears echoes of Vietnam in this development. I was here in this Chamber when the word went out in those days to send more, send more men. We will be out by Christmas, yes.
Surely this administration recognizes that increasing the U.S. troop presence in Iraq will only suck us deeper and deeper and deeper into the maelstrom, into the quicksand of violence that has become the hallmark of that unfortunate, miserable country. Starkly put, at this juncture, more U.S. forces in Iraq equates more U.S. targets in Iraq.
Again, Tennyson's words bespeak a cautionary tale for the present:
Cannons to the right of them,
Cannons to the left of them,
Cannons in front of them
Volley'd and thunder'd;
Storm'd at with shot and shell,
Boldly they rode and well,
Into the jaws of Death,
Into the mouth of Hell
Rode the six hundred.
Like Tennyson's Light Brigade, American military personnel have proved their valor, have proved their mettle, have proved their bravery in Iraq. In the face of a relentless and seemingly ubiquitous insurgency, they have performed with great courage and great resolve. They have followed the orders of their Commander in Chief, regardless of the cost. But surely some must wonder why it is American forces that are still shouldering the vast majority, the overwhelming majority of the burden in Iraq, 1 year after the liberation of the country.
Where are the Iraqis? Where are they? What has happened to our much- vaunted plans to train and equip the Iraqi police and Iraqi military to relieve the burden on U.S. military personnel? Could it be that our expectations exceeded our ability to develop these forces? Could it be that, once again, the United States underestimated the difficulty of winning the peace in Iraq?
Since this war began, America has poured $121 billion into Iraq for the military and for reconstruction. But this money cannot buy security; this money cannot buy peace; and $121 billion later, only 2,324 of the 78,224 Iraqi police are ``fully qualified,'' according to the Pentagon. Nearly 60,000 of those same police officers have had no formal training--none. It is no wonder security has proved to be so elusive. The time has come for a new approach in Iraq.
The harsh reality is this: One year after the fall of Baghdad, the United States should not be casting about for a formula to bring additional U.S. troops to Iraq. The United States should instead be working toward an exit strategy. The fact that the President has alienated friend and foe alike by his arrogance in ``going it alone'' in Iraq and has made the task of internationalizing postwar Iraq an enormously difficult burden should not deter our resolve.
Pouring more U.S. troops into Iraq is not the path to extricate ourselves from that miserable and unfortunate country. We need the support and endorsement of both the United Nations and Iraq's neighbors to truly internationalize the Iraq occupation and take U.S. soldiers out of the crosshairs of angry Iraqis.
From the flood of disturbing dispatches from Iraq, it is clear that many Iraqis, both Sunni and Shiite, are seething under the yoke of the American occupation. The recent violent uprising by followers of a radical Shiite cleric is by far the most troubling development in months and could signal America's worst nightmare--a civil war in Iraq that pits moderate Shiites against radical Shiites. Layered over the persistent insurgency being waged by disgruntled Iraqi Sunnis and radical Islamic operatives, a Shiite civil war could be the event that topples Iraq from instability into utter chaos.
As worrisome as these developments are in and of themselves, the fact that they are occurring as the United States hurtles toward a June 30 deadline to turn Iraq over to an interim Iraqi government--a government that has yet to be identified, established, or vetted--adds an element of desperation to the situation.
Where should we look for leadership? To this Congress? To this Senate? Should we look here?
This Senate, the foundation of the Republic, has been unwilling to take a hard look at the chaos in Iraq. Senators have once again been cowed into silence. Where are Senators on this issue? Where are they? They are of many different opinions, I am sure. Why are they not here to express them? Senators have once again been cowed into silence and support, not because the policy is right, but because the blood of our soldiers and thousands of innocents is on our hands.
Questions that ought to be stated loudly in this Chamber are instead whispered in the halls. Those few Senators with courage to stand up and speak out are challenged as unpatriotic and charged with sowing seeds of terrorism. It has been suggested that any who dare to question the President are no better than the terrorists themselves. Such are the suggestions of those who would rather not face the truth.
This Republic was founded in part because of the arrogance of a king who expected his subjects to do as they were told, without question, without hesitation. Our forefathers overthrew that tyrant and adopted a system of government where dissent is not only important, it is also mandatory. Questioning flawed leadership is a requirement of this Government. Failing to question, failing to speak out, is failing the legacy of the Founding Fathers.
When speaking of Iraq, the President maintains that his resolve is firm, and indeed the stakes for him are enormous. But the stakes are also enormous for the men and women who are serving in Iraq and who are waiting and praying for the day they will be able to return home to their families, their ranks painfully diminished but their mission fulfilled with honor and dignity.
The President sent these men and women into Iraq, and it is his responsibility to develop a strategy to extricate them from that troubled country before their losses become intolerable.
It is staggeringly clear that the administration did not understand the
consequences of invading Iraq a year ago, and it is staggeringly clear that this administration has no effective plan to cope with the aftermath of the war and the functional collapse of Iraq. It is time-- past time--for the President to remedy that omission and to level with the American people about the magnitude of mistakes made and lessons learned. America needs a roadmap out of Iraq, one that is orderly and astute, else more of our men and women in uniform will follow the fate of Tennyson's doomed Light Brigade.
Madam President, I yield the floor.
Mr. President, the Senate today is considering a procedural vote on a motion to recommit the Foreign Sales Corporation/ Extraterritorial Income (FSC/ETI) legislation. This is an effort to bring to the Senate a remodeled bill--one containing popular energy tax incentives--that will make a vote against it less politically palatable. This is much less about enacting good national policies than it is about producing campaign ads. This is less about creating jobs than it is about playing partisan politics. It is certainly less about the very important business of formulating a comprehensive national energy policy than it is about scoring points for the majority's campaign contributors. As the Members of this body know well, bipartisan energy legislation, including a very similar package of energy tax incentives, passed this body twice already--once in April 2002, in the 107th Congress, and again in July 2003, in the first session of this Congress.
I support, and have strongly advocated, many of these targeted energy tax provisions. In their totality, these incentives can be a helpful stimulus to get our Nation's energy policy back on track, and the Senate's proposal has had support in numerous industry sectors as well as among consumers. However, it is a rotten carrot that is dangling before us. This is yet another perverse, backdoor attempt to buy off Democratic votes by adding popular provisions to a Senate bill, while simultaneously preventing Democratic Senators from offering their own amendments on the floor and preventing them from protecting their interests during conferences.
The majority is preventing Democrats from getting votes on other very important policy matters. There are many things that this Senate must address, including passing these energy tax incentives, but the majority needs to stop playing games with its Democratic colleagues. The Senate deserves better.
The Senate finds itself handcuffed by the same authoritarian dictates from the Bush administration that have led to some of the fiercest partisan passions that this body has seen in decades. Gone is the traditional spirit of cooperation. Gone is the belief that the needs of the Nation stand above the ambitions of political party. It is a disheartening turn for this historic Chamber.
Despite its campaign-driven rhetoric, this lipservice and corporate coddling have been the sum total of this administration's economic, health care, energy, and so many other policies. From the beginning, the administration's tax cuts have primarily benefited the wealthy. Hope for a bipartisan Medicare prescription drug benefit was high, but all that was left was a prescription for protecting the pharmaceutical industry and a drug benefit that is a sham for America's seniors. Progress on an energy strategy for the country began cooperatively, but quickly dissolved as Democrats were locked out of conference negotiations, their seats filled by special interest lobbyists.
If the Republican majority wants to get something done in a closely divided Senate, it can, but it has to work with the other side of the aisle at all stages of the legislative process. That means respecting the committee process, respecting the rights of Senators to offer--and get votes on--amendments on the floor. It means truly including Democrats in conference deliberations, and defending the position of the Senate in conference negotiations--not buckling under pressure from the White House. I believe that, if the majority would do this, we would follow a better, more productive legislative path instead of voting on--and failing to invoke--cloture so often.
Mr. President, I rise today to support the Jumpstart Our Business Strength Act, a bill that provides much-needed tax relief to our Nation's manufacturing base in a manner that will not only protect…
Mr. President, I rise today to support the Jumpstart Our Business Strength Act, a bill that provides much-needed tax relief to our Nation's manufacturing base in a manner that will not only protect but will create jobs. Without question, passing this bipartisan legislation will provide a major boost to the manufacturing sector of our economy.
Indeed, this legislation is necessary because our country's manufacturers are in desperate need of help. Not only has America been hard hit by slow worldwide growth, but also has sustained significant job losses during the last few years.
Although the economic statistics for March are a positive improvement, there remains cause for concern when one considers the profound erosion of U.S. manufacturing jobs in recent years. The damage this sector has sustained is nothing short of stunning. From July 2000 through July 2003, nearly 2.8 million U.S. manufacturing jobs were eliminated. Incredibly, New England lost more than 214,000 manufacturing jobs in the decade between June 1993 and June 2003.
According to the National Association of Manufacturers, between January 2001 through January 2004, manufacturing employment in our Nation declined by 16 percent. In New England, there was a 20 percent decrease in manufacturing employment during that same time period. This means that between January 2001 and January 2004, New England's manufacturing sector employment declined by an alarming 28 percent faster rate than it did nationally.
My home State of Maine has been shedding manufacturing jobs at an alarming rate over the past decade--and all the more so in the past two years. From January 1993 through June 2003, a 10\1/2\ year period, Maine lost 18,900 manufacturing jobs. More specifically, from July 2000 to June 2003, Maine has lost 17,300 manufacturing jobs--the highest loss of any State during that time period.
In addition to passing this legislation to reverse these trends, we are also here to replace the Foreign Sales Corporation/Extraterritorial Income, FSC/ETI, rules. Congress enacted these rules to make U.S. exporters more competitive overseas by reducing their maximum income tax rate on export income from 35 percent to about 29.75 percent. This incentive is necessary to offset the disadvantage that U.S. exporters face vis-a-vis foreign competitors who benefit from a territorial tax regime. Nevertheless, the World Trade Organization, WTO, determined that the FSC/ETI rules provide an impermissible export subsidy, meaning Congress must repeal those rules or face over $4 billion in trade sanctions. Those sanctions began to take effect March 1.
At the same time, repealing these rules will result in a nearly $50 billion tax increase on the manufacturing sector over the next ten years. Consequently, we need to replace the FSC/ETI regime with an appropriate substitute that not only complies with WTO rules but, more importantly, protects our own manufacturing base.
Our objectives should therefore be clear: not only must we pass legislation to comply with international trade law, but more importantly, we need to offer our country's manufacturers with a solution that will jumpstart their production and create jobs, and we must do so right now. Were we to neglect this duty to ensure that our nation's manufacturers are simply given the chance to compete on a level playing field with foreign competitors, we would only be compounding the current situation--a
result with which I am sure very few persons, particularly those workers who have lost their jobs would be pleased.
Our task, then, is to identify the best way to ``reallocate'' the $50 billion in revenues that replacing the FSC/ETI rules will generate and ensure that those funds continue to benefit their original beneficiary--namely our manufacturers. For that reason, I am pleased that the main component of this bill provides direct tax relief to the manufacturing sector of our economy. By permitting manufacturers to exclude from tax a portion of their income earned directly from manufacturing operations that employ U.S. workers and are located in the United States, we will continue to ensure that our Nation's manufacturers are on a level playing field with foreign competitors, and we will accelerate the overall economic recovery that is so desperately needed and that is already underway.
This legislation, therefore, provides poignant, targeted tax relief directly into the sector of our nation's economy that needs it most. In short, this income tax rate reduction for manufacturers will reduce their cost of doing business and increase their ability to compete in a global economy. Consequently, these businesses will be able to reinvest this savings directly into their operations, thereby increasing productivity and creating jobs.
To achieve these results, it is essential that this tax relief must be available for all manufacturers--regardless of entity classification. As such, I along with several Senators worked hard during the Finance Committee's markup to insist that this bill apply to small businesses that operate in the form of S-corporations, partnerships, limited liability companies, and sole-proprietorships. With small business manufacturers constituting over 98 percent of our Nation's manufacturing enterprises, employing 12 million people, and supplying more than 50 percent of the value-added during U.S. manufacturing, it is imperative that we not turn our backs on these hard working taxpayers.
Despite the significance that small businesses play in our country's economy, and despite the fact that not every manufacturer operates as a corporation, some contend that in place of this bill's targeted manufacturing relief, a more appropriate course of action would be to provide an across-the-board 2 percent tax cut for all domestic corporations--regardless if they are manufacturers.
I find this alternative problematic for two reasons. First, this proposition forgets the reason why we are here in the first place-- namely to reallocate tax cuts that Congress provided specifically for domestic manufacturers in an effort to maintain their international competitiveness. Doesn't it make sense to ensure that all manufacturers, which are the primary beneficiaries of the FSC/ETI rules, continue to be the primary beneficiary of its replacement legislation, particularly when the manufacturing sector of our economy is already struggling to compete and preserve jobs?
After all, the main goal of this bill is to increase the competitiveness of our manufacturing base and stop the current job loss trend, meaning legislation that is not necessarily focused exclusively on manufacturing sector might fall short of this goal. Rather, the focus must remain on promoting domestic job creation, and the legislation before us accomplishes this task much more effectively than would an across-the-board tax cut that is exclusive to corporations.
In addition, an across-the-board corporate rate cut limits this tax relief to only corporations--something that is simply unacceptable as small businesses, many of which are S-corporations, limited liability companies, partnerships, and sole-proprietorships, are the true engine that drives this economy and are responsible for a majority of domestic job creation. Indeed, small businesses account for 97.5 percent of Maine businesses . . . 98 percent of America's manufacturing enterprise . . . and contribute three-quarters of all new jobs nationwide. It is therefore imperative that this legislation, which is intended to ``Jumpstart Our Business Strength,'' include all manufacturers, particularly all small businesses, so that we continue this upward trend and reinvigorate America's entrepreneurial spirit.
Along those lines, I am also pleased that Chairman Grassley incorporated several other of my provisions during the Finance Committee's markup of this bill. For example, current law permits small businesses to expense, rather than depreciate, up to $100,000 spent on equipment used in their trade or business. While this provision encourages capital investments and stimulates economic growth, the current phase-out limits the number of small businesses that can qualify.
My provision already in this bill increases the phase out threshold-- thereby increasing the number of eligible small businesses for this much-needed tax relief. In turn, these taxpayers will be provided with greater incentive to expand their operations that will not only increase productivity but ultimately create jobs.
Another one of my provisions included in this legislation is based on my bill S. 885--The Small Business Investment Company Capital Access Act of 2003. In short, this bill provides that certain government- guaranteed debt capital of Debenture Small Business Investment Companies, SBICs, is excluded from the definition of ``debt'' for purposes of the unrelated businesses taxable income rules.
This change is necessary because under current law, potential tax- exempt investors such as pension funds and universities are dissuaded from investing in small businesses due to the tax liability that would result from the SBICs. By eliminating this problem and expanding the capital available for SBICs to invest in the nation's small businesses at the modest rate of $1 million per year, this provision has the potential to result in $500-$600 million of new capital investments in SBICs, which in turn will create thousands of jobs each year.
Furthermore, this bill includes specific provisions at my urging that will benefit greatly many taxpayers in my home State of Maine. In committee, I worked to ensure that the tax relief in this bill was extended to ``unprocessed softwood timber.'' The Softwood Lumber industry, like paper and steel, has faced unfair trade from countries that subsidize their products and dump them on the U.S. market. For that reason, combined with the fact that this legislation is intended to benefit manufacturers in general and not only exporters, it is essential that this legislation extend this tax relief to the timber industry.
Similarly, I urged Chairman Grassley to include a provision in this legislation that would classify gains resulting from the sale or exchange of timber as capital rather than ordinary. The crux of this provision is to change the way in which capital gains are calculated for timber by taking the amount of gain and subtracting three percent for each year the timber was held. This change is necessary because although individuals pay a maximum capital gains rate of 15 percent, corporations must still pay a 35 percent rate. As such, this change will reduce the rate of tax for corporations that sell timber, therefore making the U.S. forest products industry more competitive internationally and preserving domestic jobs.
In addition to these provisions that already are included in the bill, I am working with Chairman Grassley on an amendment that I have filed that will not only spur economic growth but that will also go a long way in bolstering our national security. Currently, navy shipbuilders are treated unfairly by the tax code because they are required to pay tax based on an expected percentage of their profits. This treatment is problematic because oftentimes, they do not receive payment for several years, meaning the income tax has an overly burdensome effect on their cash flow and their overall production.
My amendment would change this treatment by placing navy shipbuilders on equal treatment with commercial shipbuilders in allowing them to pay 40 percent of their estimated income tax during the contract and the remaining 60 percent upon completion of the contract so long as the contract does not exceed 8 years. Importantly, this amendment does not in any way affect the amount of tax that navy shipbuilders will pay; rather, it simply affords a more equitable payment schedule to allow these taxpayers to satisfy
more of their tax obligation at a time in which they have cash in hand. I hope that in working with the chairman, we will find a way to address this unfair disparity that is harming our Nation's naval shipbuilders.
Accordingly, I believe that the bill before us strikes the proper balance of providing needed tax relief to the taxpayers in our economy who need it most. It has taken a great deal of work to get us where we are today, yet I firmly believe that providing targeted, affordable tax relief to the manufacturing sector of our economy is certainly the right path to choose in repealing the FSC/ETI rules.
The key here is that this bill simply reallocates the revenue that repealing the FSC/ETI rules will raise and distributes it directly to the primary beneficiaries of those rules--our country's manufacturers, which is indeed appropriate as the manufacturing base is in dire need of help.
While the legislation also simplifies the international tax code and contains other miscellaneous tax cuts designed to create jobs, it does so without increasing the federal budget deficit because it contains tax offsets that will thwart taxpayers' participation in illegal tax shelters and abusive leasing transactions. Consequently, unlike previous tax bills, this legislation is revenue neutral. Therefore, not only is this bill affordable, but it is much needed in order to bolster our manufacturing base and enhance the competitiveness of the U.S. based businesses.
Thank you, Mr. President.
medical liability reform
Mr. President, the Senate will decide shortly what path to take on the pending asbestos liability legislation, otherwise known as the Fairness In Asbestos Injury Resolution Act, more frequently…
Mr. President, the Senate will decide shortly what path to take on the pending asbestos liability legislation, otherwise known as the Fairness In Asbestos Injury Resolution Act, more frequently referred to simply as the FAIR Act. This bill has inspired very strong sentiments from many Americans. Like my colleagues on both sides of the aisle, I am deeply sympathetic to those who have suffered severe medical consequences from exposure to asbestos.
I am somewhat less sympathetic to those who may seek compensation without demonstrating a medical impact on their lives. While the number of mesothelioma claims has remained relatively steady at about 2,000 claims
a year for the last 10 years, over 100,000 cases were filed in 2003.
According to the RAND Institute for Civil Justice, mesothelioma victims receive only 17 percent of compensation awards, compared to 65 percent for nonmalignant claimants.
On top of that, trial lawyers may charge fees as high as 40 percent plus litigation expenses. The result of less justifiable lawsuits is many real victims are denied compensation for actual injuries.
To date, 67 companies have been bankrupted and more than 60,000 Americans have lost their jobs as a direct result of asbestos liability. Clearly, we have a problem in this country.
I followed the numerous Senate hearings held on this issue and I have met with numerous Coloradans with a variety of perspectives. I met with those who lost loved ones to mesothelioma, those who have lost jobs due to asbestos litigation, and those who are curtailing their manufacturing operations in Colorado in anticipation of continued claims.
The complexities of this issue are tremendous. I compliment my colleagues, the chairman of the Judiciary Committee and the majority leader, for their work to date on this issue.
Beyond the FAIR Act, general litigation and litigation reform have been major topics of concern this session in the Senate. Last October, the Senate focused on the Class Action Fairness Act. When a plaintiff's injury is not worth enough to justify a legal suit to recover damages, individuals similarly affected can combine damages for one lawsuit against a common defendant. In recent years, driven largely by a few unscrupulous attorneys, there has been an explosion in class action litigation. Our economy bears an enormous burden due to this explosion of litigation. Unfortunately, much of that burden is carried by consumers. Specific to these suits, these abuses of the system, the consumer is often left out in the rain once there is a settlement. Attorneys can make millions, while the plaintiffs are often left with nothing more than a coupon for a service they were denied in the first place.
Like so many things designed to protect consumers and ensure fair and just restitution, the tool of class action has been manipulated. Far too often, that manipulation has yielded tremendous wealth for attorneys driving these actions and little or nothing for the consumers initially harmed.
The Center for Legal Policy recently reported from 1997 to 2000 United States firms saw a 300-percent increase in Federal class actions and a 1,000-percent spike in State class actions. The end result, as we will see, is an increase in litigation, thus an increase in the cost of doing business and higher costs passed along to the consumer. There are, in fact, a plethora of abuses that have contributed to the generation of this legislation in the Senate.
Nothing in the class action bill denied a consumer a right to make valid claims. This point cannot be stressed enough. Our legal system has functioned under this guiding principle for generations. We will do nothing in this Chamber to challenge that principle.
There are those in this body who see this bill differently. There are those in this body who can look at the class action brought against Blockbuster Video where attorneys will collect a little less than $10 million and class members will get coupons toward future video rentals and say this is justice. This case, and cases like it, are representative of the systematic denial of valid claims by class members and it is incumbent upon us to rectify this situation.
One such tool at our disposal is increased oversight of such settlements. The Founding Fathers, in their infinite wisdom, envisioned problems like this. The Constitution was drafted explicitly to provide for Federal jurisdiction over all lawsuits between the citizens of different States. These cases involving parties of diverse citizenship have evolved into what we see today as national types of litigation or big-dollar suits against large companies engaged in interstate commerce. Over time, Congress has more narrowly defined constitutional diversity and created a requirement that all plaintiffs be diverse from all defendants. The result today is venue shopping, attorneys seeking favorable State courts through which to pursue an action that is national in scope. The Founders knew such nebulous venue requirements could lead to local biases in cases of broad significance and we have, unfortunately, arrived at that point. The Constitution provides for Federal jurisdiction over citizens of different States so local bias will never become an issue. National, multimillion-dollar suits should not be barred from Federal courts. The egregious practice of venue shopping flies in the face of the Founders' intent.
Class actions are a valuable part of the legal system. Recent abuses and a shift in the benefits of an action from class members and toward attorneys should not signal the end of access to appropriate legal recourse. The system as it exists today is untenable.
Medical liability has become another increasingly important matter on a national scale. In February, the Senate debated the Patient Crisis/ Access to Care Act. Skyrocketing medical liability premiums have translated directly to physicians limiting services, retiring early, or moving out of the State--one State to another--to escape escalating costs of liability insurance.
This cost is deeply felt and extends well beyond the physician- patient relationship. Emergency departments are losing staff and scaling back critical services, even trauma units. OB/GYNs and family doctors have stopped delivering babies, and all too often high-risk procedures--for example, neurosurgery--are postponed because surgeons cannot find or afford insurance.
The result is a serious threat to patient access to care. Twenty-six percent of health care institutions have cut back services or eliminated patient care units. Seventy-eight percent of Americans fear that skyrocketing medical liability costs will limit access to care even further.
If we look at the root of this problem, we see that median medical liability awards have increased 43 percent in 1 year from $700,000 in 1999 to more than $1 million in the year 2000. In 2001, malpractice insurers paid $1.53 in claims and costs for every $1 received in revenue. This system is not sustainable and will not serve those Americans in need of better health care.
We are suit happy. At some point Americans stopped bargaining and negotiating in good faith. At some point we became less concerned with justice and more focused on assigning blame. More than assigning blame, we now assign dollar amounts to virtually every major, minor, and perceived slight. We live in a country where family disputes are settled in court.
Mr. President, at the risk of sounding too folksy, people where I come from, where I was raised, simply do not see it this way. If this body does nothing else today, we should commit to an overall effort to recast our approach to the judicial system--a system that has grown obese and focused on greed rather than justice.
These are just a few examples of the cost of continued and increased litigation and the importance of reform.
The FAIR Act, which faces a cloture vote later today, marks another attempt to deal with a pressing national issue. It is clear, however, that the FAIR Act will not be permitted to come to an up-or-down vote in the Senate.
A variety of important bills have been effectively defeated before they have ever come to an up-or-down vote in this body. Parliamentary tricks and filibuster by the Democrats have jammed numerous issues.
The following examples should clearly illustrate this obstruction.
The JOBS bill would both repeal a European tariff on nearly 100 American-made products and cut taxes for manufacturers in the United States. Although the JOBS bill passed the Finance Committee 19 to 2 and enjoys broad, bipartisan support, Democrats voted to block a vote on the measure in March.
The medical liability legislation I discussed--patients across America are denied critical health care, including emergency and obstetric care, because doctors and hospitals are closing their doors from skyrocketing liability costs. Opponents blocked a comprehensive, bipartisan bill in July of 2003. In February of 2004, Senate Democrats again blocked an effort to protect women's access to obstetric and gynecological care. That was S. 2207.
The energy bill--a comprehensive energy bill would deliver nearly 1 million
American jobs, increase renewable and alternative sources of energy, and reduce America's dependence on foreign oil. This bill has been blocked in the Senate for 3 years, including a provision to open ANWR and dramatically reduce America's dependence on foreign oil and create hundreds of thousands of more American jobs.
The Workforce Investment Act is projected to help more than 940,000 dislocated workers get the training they need to get good jobs. It was passed by both the House and the Senate--I might add unanimously in the Senate. Senate Democrats now refuse to appoint conferees so that the bill can become law.
Judges--the unprecedented, unconstitutional challenge to the Senate's advise-and-consent role continues. A minority of Democrats have prevented six highly qualified Federal appeals court nominees from receiving a fair, up-or-down confirmation vote and are threatening to use partisan filibusters to prevent confirmation of additional judges. If given an up-or-down vote, all these nominees would be serving on the bench today.
The class action legislation I mentioned would create a consumer bill of rights to ensure that victims are not denied fair compensation while their trial lawyers escape with the lion's share of court awards. On October 22, 2003, Senate Republicans and nine Democrats came one vote short of overcoming the Democrat leadership's parliamentary obstruction.
Faith-based/charities legislation passed the Senate on April 9, 2003, with overwhelming bipartisan support, 95 to 5, and similar legislation resoundingly passed the House on September 17, but the Democrat leadership is blocking a conference committee to resolve House-Senate differences and even allow a final vote. The CARE Act will spur more charitable giving and assist faith-based organizations and community charities.
Welfare reform--on April 1, 2004, Senate Democrats voted to block a measure to reauthorize the landmark 1996 welfare reforms. H.R. 4 would build on the successes of the 1996 reforms to strengthen work requirements and promote healthy families, as well as provide an additional $6 billion in childcare funding.
It is time to move forward with an agenda in the Senate. I think it is time for us to put aside the partisan politics we are experiencing in the Senate today and move forward with, I think, very important legislation. I talked about some of that: liability reform, that affects both class actions as well as medical care; trying to ensure that we have voluntarism. Welfare reform has been extremely successful. Yet we find that obstructed in the Senate.
I hope, even though this is a Presidential year, and many of us are not surprised by some of the Presidential politics, that the Democrats will seek to cooperate more with the Republican majority so we can move forward with the agenda in the Senate.
There is a terrible cost being exacted for our delinquency on these matters. Every day the outlook for health care, the burden of an un- reformed tort system run amuck, and opportunities for America's small businesses grows increasingly difficult. I pledge to work with my colleagues on each of these issues, some of which I support and others which I may not, but I will work with colleagues to see that each bill receives a fair up and down vote. Our constituents deserve better than to watch while the legislative process is held hostage for the political or ideological desires of a few members of this body.
Mr. President, I thank the Chair and yield back my time.
Mr. President, I suggest the absence of a quorum.
Mr. President, I will withhold at the request of the leader. Mr. President, there is a recurring pattern in this town. An issue comes to our attention. It is red hot. It creates a great deal of…
Mr. President, I will withhold at the request of the leader.
Mr. President, there is a recurring pattern in this town. An issue comes to our attention. It is red hot. It creates a great deal of controversy. Two months later it is forgotten. My effort tonight is going to be to resurrect one of those issues because I think is it not only extremely important, but it is also urgent that we give it attention.
The issue is the administration's cost estimate of the Medicare Modernization and Improvement Act and the circumstances surrounding the failure to release that cost estimate to the Congress. As I said, this is old news, but let me just refresh some people's memories.
As early as the summer of 2003, the administration's actuaries, the people who work for the administration in the Department of Health and Human Services, projected that the 10-year cost of the Medicare legislation, which among other things provided a prescription drug benefit, would be $534 billion over a 10-year period. It is also old news that Mr. Rick Foster, Chief Actuary of the Medicare Program, was ordered by the administrator of the Centers for Medicare and Medicaid Services--at that time Mr. Thomas Scully--to withhold critical actuarial data from Congress and that failure to abide by this order might well result in Mr. Foster being fired.
What is yet to be news are the reasons for the months' long delay in disclosing that estimate to the American public and to the Congress. It has now been 10 weeks since we found out the Medicare bill that we had represented to us as costing $400 billion over 10 years would actually cost $534 billion, according to the administration's own actuaries--10 weeks. We have had no explanation for the reasons for the delay, despite the following quote by Secretary Thompson, the Secretary of the Department of Health and Human Services, on March 16 of this year. What did the Secretary say?
There seems to be a cloud over this department because of
this. We have nothing to hide. So I want to make darn sure
that everything comes out.
Along with other members of the Finance Committee, I have asked the chairman and the ranking member to hold a hearing on the cost estimate and the reasons for its late disclosure. Given his strong track record on Medicare oversight, I am confident these two fine Senators will do so.
I want to be clear about a couple of things:
One, it is not the cost per se that is troubling to me. In a moment of full disclosure, I voted for a prescription drug benefit that cost more than $400 billion. I voted for a prescription drug benefit that cost more than $534 billion. But I was voting for a prescription drug benefit that would at least provide a reliable Buick-style benefit to our seniors. What has now happened is we have learned that we passed a Yugo-like prescription drug benefit and are now paying Cadillac prices for it.
The second thing I wish to be clear about, some of my colleagues have suggested that the only estimate that matters is the Congressional Budget Office because Congress is legally required to rely on the CBO numbers. You may recall, as a youth, reading some Charles Dickens books, including possibly Oliver Twist. In that book, when confronted with a similar argument, Mr. Bumble said:
If the law supposed that, the law is an ass, an idiot.
Mr. Bumble's perspective on the law aside, it is indeed true that Congress uses CBO numbers as our official scorekeeper, and I am not suggesting that at this point we alter that process. At the same time I don't think anyone would disagree that it is in America's best interest and the best interest of Congress to have as much information as possible before we vote on significant pieces of legislation. That would clearly include the insights of the person most knowledgeable about the likely cost of this program--the actuary of the very department that will have the responsibility for administering the program.
In fact, it seems information was deliberate, purposefully withheld from the Congress. That action of withholding was contrary to past practices. Moreover, it appears to directly violate the spirit of the Balanced Budget Act of 1997 which confirmed the independence of the Chief Actuary and the desire of Congress to have access to his relevant cost projections.
The fact that the official cost has appropriately been determined by CBO is not the point, nor is the point the fact that there was a difference in the cost estimates between the Congressional Budget Office and the Department's actuaries. We know that different analysts will frequently arrive at different conclusions. The point is this: the enormous magnitude of the difference and the efforts apparently taken by this administration to keep that huge difference hidden from public and congressional scrutiny. That is the point.
The point is the Chief Actuary had information that would have been valuable to us, Republicans and Democrats alike, in our deliberations long before we took our vote on the final conferenced version of the Medicare prescription drug legislation. This information was deliberately withheld.
The fact is, if the White House had released to the public and the Congress its own actuary's estimate of the cost of this Yugo prescription drug benefit, the legislation would clearly not have passed.
The Finance Committee has a particular obligation to investigate this deception. As a member of that committee, I understand we have an obligation to seniors who are depending on an affordable, quality prescription drug benefit. We have an obligation to taxpayers who will be paying for that benefit. We have an obligation to our fellow colleagues to whom we declared, we represented that this plan would not cost more than $400 billion, cross my heart and hope to die.
We have an obligation to get answers to these questions:
What did the President know regarding the much higher cost estimated by his own actuaries and when did he know it? For someone from Tennessee, that might be a familiar question.
If the President did not know that one of his stated priorities was estimated by his actuaries to far exceed the cost ceiling for this Medicare change--$400 billion over 10 years--who within his administration failed to notify him of this extraordinary cost overrun?
Third, what actions, if any, were taken by the Department of Health and Human Services, the Office of Management and Budget, or the White House itself to prevent the timely and accurate reporting of information to Congress on the cost of this Medicare bill?
Finally, who has the President held accountable for this deception and what sanctions have been imposed?
These are ``rational, critical, important to the Congress and the public to know the answers'' questions. One of the immediate impacts we are going to have because of this withholding is that the Congress, the Senate, now the House, have recently passed budget resolutions. These budget resolutions cover fiscal year 2005, which begins October 1 of this year, running through fiscal year 2009. In that budget resolution, as passed by the Senate, the baseline cost of the new Medicare prescription drug provisions and other matters that were included in that legislation is $165 billion over 5 years. The number, as determined by the administration's own Office of the Actuary in the Department of Health and Human Services, is $231 billion.
Mr. President, what are we going to do when we face the question of funding this prescription drug benefit--what I suspect to be likely closer to its true cost, $231 billion, as opposed to $165 billion, CBO's number. Are we
going to have to have a point of order with 60 votes every time we exceed the clearly inadequate number in order to provide the benefit that we are now running millions of dollars worth of television ads telling the seniors of America they are about to get a new benefit, without any changes in the Medicare Program?
The Finance Committee needs to closely examine these different numbers. I suggest a couple of places to start. Approximately 25 percent of the difference between CBO and the actuaries is in one area, and that is what will be the effect of increasing the number of persons who are enrolled in health management organizations. This legislation not only dealt with prescription drugs, but it also substantially increased the funding for HMOs and insurance companies in order to create an atmosphere that would induce new Medicare beneficiaries to change their form of service from fee for service to traditional Medicare and to join an HMO.
In fact, the CBO estimated it would cost an additional $14 billion to do that. The administration estimates it will cost $46 billion. You might ask why does it cost more. I thought the purpose of using an HMO for Medicare beneficiaries was it would save money. It was supposed to get people into a more organized health care system; it was supposed to encourage HMOs to provide preventive services so people would not get as sick, and they would have a higher quality of life and less health care costs.
Well, I am shocked, and I am certain most Members of Congress are shocked, to find the administration finds it will cost $46 billion more to provide health care services to those persons who are induced by the benefits of this legislation to join an HMO than if they stayed where they were. So one question we need to know is, why are we scaring seniors into HMOs, when this is clearly harmful to the financial structure of the Medicare Program?
The second point I hope the Finance Committee will review is the prohibition inserted into this legislation against the administrator of the program and the Secretary of the Department of Health and Human Services, negotiating on behalf of Medicare beneficiaries to get the best possible prices for prescription drugs. We have an almost analogous situation, except the circumstances are reversed. The Secretary of the Veterans' Administration is directed to negotiate for the prescription drugs his largest hospital system in the world provides. Guess what. He has negotiated so well the cost of prescription drugs in a VA hospital is less than half of what it would be if you bought the same drugs at retail at a local drugstore.
Can you believe the Congress of the United States has passed a provision that prohibits the head of Health and Human Services from getting the same good prices for our seniors?
Let me say, as an aside, we have seen some extremely distressing numbers from the trustees of the Medicare Program. In fact, they released a report within the last 30 days which indicated there has been a 7-year shortening in the term--the years in which Medicare will go insolvent. As recently as last year, it was estimated the program would go insolvent in 2026. In 1 year, they have reduced that to 2019. So we have a system that, we are being told by our best experts, in a little more than 15 years is going to be insolvent. It seems to me there ought to be a sense of urgency to get every possible relief we can to this program so we do not deny the promise that has been made to the American people, to the working men and women, when they reach retirement age.
I believe one thing we can do immediately, in addition to reviewing this issue of health maintenance organizations, is to give to the Secretary of HHS and the administrator of the Medicare Program the authority to negotiate for the hospital portion of prescription drugs. We have passed a new prescription drug benefit for outpatients. But since the beginning of Medicare, Medicare has paid for prescription drugs that were dispensed in a hospital setting. We ought to do everything we can, in light of the fact that 100 percent of the trust funds for Medicare goes for part A--the hospital part--to lower the cost of the hospitals. One immediate way we can do it is by assisting the hospitals in the same way VA assists its hospitals, to lower the cost of their prescription drugs.
I am hopeful the Finance Committee will hold a hearing on this important issue before the Memorial Day recess. This would give us an opportunity to fully understand the differences between the two estimates, the implications of those differences, and the process by which we learned at such a late date the administration was going to project such an enormous difference. And most important, as a Congress, we need to understand what happened and how the Congress can correct the consequence of this deception.
jobs act
Madam President, what is the pending business? Thank you, Madam President. I will speak to that motion, please. Madam President, today, we voted actually a second time on that motion to invoke…
Madam President, what is the pending business?
Thank you, Madam President. I will speak to that motion, please.
Madam President, today, we voted actually a second time on that motion to invoke cloture to recommit this pending bill to the Finance Committee--a vote that failed. So, in other words, we essentially voted not to recommit the bill to the committee of origin.
I emphasize that fact because in my State of Minnesota Democrats are being accused of blocking action on this bill. That simply is not true. We are ready and willing to act on this legislation right now, in fact, as we were last week before it was pulled off the floor by the Republican leader.
So people watching might ask themselves, why was it pulled back then? Why have we been faced with these repeated attempts to send the bill back to committee? The reason is because the Republican caucus does not want to have to vote on the pending amendment, which is the Harkin amendment, which would protect the rights to overtime pay for some 8 million Americans--police officers, firefighters, nurses, laborers; hard-working Americans who want to continue to receive overtime pay when they work their extra hours, whether it be for the sake of public safety, whether it is needed to fill shifts on hospital wards in order to keep them open to patients, or whether it is in order to earn extra income to improve their own lives and the lives of their families.
These 8 million Americans are not asking for any special favors, such as are provided in the underlying bill. They are not trying to get special tax breaks or avoid paying taxes on their foreign income, as are the beneficiaries of the underlying bill. They simply want to be able to earn the American dream, by working harder, by working longer hours, paying their taxes but then coming out ahead because of the overtime provisions.
But this administration has said no, the same administration that wants to eliminate taxes on so-called unearned income, dividend income. They settled for cutting the rate in half but wanted to eliminate it initially. In other words, they want to make not working more lucrative and also want to make working harder less lucrative.
Now, what kind of family value is that? You work more and you earn less because the Bush administration cares more about the corporations that want to add to their profits by paying their workers less money. That is why they moved millions of American jobs overseas. That is why they have eliminated millions of American jobs.
Madam President, 8.5 million of our fellow Americans are out of a job today. And now these same corporations, which have, by the way, been enjoying record high-profit increases in each of the last 2 years, want to make even more money by paying less money to the people who are still working. And the administration is going to help them do it.
In fact, the Secretary of Labor unilaterally, by herself, revoked the overtime benefit protections for 8 million Americans. We, their elected representatives, are not even being allowed to vote on that matter to express our approval or disapproval--in this case, my strong disapproval--of that revocation of their overtime benefit protections.
Why not? Why can't we vote on protecting 8 million American workers? Well, the Republican Conference leader said: Where is the discernible gain to our Members from voting on this and other Democratic amendments?
I don't know about the gain to colleagues who don't want to support overtime pay, but I will tell you about the gain or the loss to those 8 million American workers, depending on whether this measure passes or fails.
That is their overtime pay that has been taken away by the unilateral action of the Secretary of Labor. That is their earned income that has been taken away. That is their new home, their college education, family vacation, prescription drugs they need to buy for elderly relatives.
We in the U.S. Senate are being denied even the right to vote because it is politically inconvenient for some of the Republican caucus.
There is also a huge gain or loss for millions of other Americans who are out of work by the fate of another Democratic amendment to extend unemployment benefits to the 1.1 million Americans who have exhausted theirs at the present time. That number includes an estimated 20,000 of my fellow Minnesotans. They are also hard-working men and women who, through no fault of their own, lost their jobs and have been looking for work and unable to find it in the terrible jobs climate of the last couple years.
Two-thirds of those out-of-work adults have children. An estimated 622,000 children are affected in those families that have exhausted their unemployment benefits. When that happens, it is estimated that over two-thirds of those families lose their health coverage, so the children do not have health care coverage any longer. Over half those families, it is estimated, fall below the poverty level as a result of losing their unemployment benefits. It is unbelievably heartless and cruel to deny them this extension. Yet again we are unable to get a vote in the Senate on extending unemployment benefits to those Americans.
Since we are unable to get these votes on our amendments to this JOBS Act, you might ask yourself, what is so precious about this bill, what is so perfect about it that the leader is denying us a chance to change it in any way? You would naturally assume that because it is called the JOBS bill, it is about actually providing jobs to fellow Americans, but that is not the case.
This is about providing $114 billion in tax breaks to large and mostly profitable American corporations, to very wealthy American investors. Thirty-nine billion of these tax breaks would go to their foreign business operations to allow them to reduce taxes paid in this country on foreign profits, to allow them to postpone the payment on earned income abroad; in other words, to provide them with additional tax breaks for expanding their foreign business operations and providing jobs overseas.
Some of those jobs might in fact be American jobs taken away from people in this country and sent elsewhere or they might be jobs that are going to be created through an expanded business operation that could have been created here in the United States except for the advantages of doing so elsewhere--meaning again that foreign workers get those jobs rather than Americans at a time when we have 8.5 million Americans who are out of work and another million and a half Americans who are so-called marginally attached to the labor force, who have given up looking for work, and another 4.5 million Americans who are working part time not by choice but because it is the only work they can find.
In other words, over 10 percent of our workforce is either unemployed or underemployed right now, and we are providing foreign tax breaks worth $39 billion, additional foreign tax breaks, in this measure to these companies or to the investors in them.
I will have an amendment I will offer that would address this matter and take these foreign tax breaks out of the bill, because if we are going to provide tax incentives, as other parts of the bill do, let's at least provide those incentives to American companies for producing jobs in the United States. Let's tie every single one of the tax advantages in this legislation to the provision of new jobs, ideally manufacturing jobs but provable new or additional jobs in the United States to Americans now, not as the measure provides for tax breaks that are going to accelerate in the years 2009 to 2012. Those are not going to result in the creation of new jobs in this country now. We are giving tax advantages to companies, some of which can certainly benefit from it, but many have been part of the 20-percent increases in corporate profitability in each of the last 2 years.
I am glad American corporations are profitable. We need them to be profitable in order to create jobs. But the fact is that at least in the manufacturing sector--and up until now in just about any other sector--improved profitability has not resulted in new job creation in the last couple of years. It didn't result in new job creation last month. So if we are going to provide tax reductions for U.S. manufacturing companies or anyone else, let's make darn sure those reductions are going to result in jobs, the creation of new jobs or the adding of jobs where formerly people had been laid off or cut back. Let's translate those tax breaks into what this bill calls itself, a JOBS Act, jobs for Americans.
Finally, I want to address the fact that as part of this gambit today to supposedly recommit the bill to the committee where it already was referred out, one of the ways in which we were supposedly going to be induced to do so was some part of the former Energy bill, we were told, was going to be added to the bill that reappeared out of the Finance Committee. I appreciate very much the work that has been done by that committee, in particular by Chairman Grassley of Iowa, who has been stalwart in terms of providing additional tax incentives for energy production, particularly the biofuels, ethanol, and biodiesel fuels. He was instrumental also in changing the formula on the highway trust fund that penalized States such as Minnesota for their ethanol consumption. I would like to join with the majority leader and others who would like to advance this Energy legislation forward.
Since the bill was not recommitted to the Finance Committee, I have drafted an amendment I intend to introduce to add some of the energy provisions to the pending bill, ones that would reinstate the renewable fuels standard Senator Daschle, the Democratic leader, was instrumental in adding and keeping through the conference committee a year ago, legislation to expand the American consumption of ethanol and biodiesel fuels over the next 10 years, the electric reliability section, which is beneficial to smaller utilities throughout Minnesota and elsewhere in the Nation, and then the package of tax incentives which Chairman Grassley, ranking member Baucus, and others voted out of the Senate Finance Committee that provide alternative fuel incentives, the small ethanol producer tax credit, the tradability of these credits by those co-ops and others that otherwise can't take advantage of them, the tax credit for biodiesel that parallels the credit provided for ethanol production.
These are important measures that would do what the bill itself purports to do, which is to add jobs and provide enormous economic benefits to a State such as Minnesota, to farmers in terms of income, to the production plants for ethanol and biodiesel fuels.
Those are real jobs amendments, real jobs provisions, those that are going to provide tax credits for business activities, those that are going to result directly in additional jobs for America and in an alternative fuel for America that can reduce our dependence on foreign oil; that can take some of the $115 billion a year we send out of the country to foreign countries such as Saudi Arabia and elsewhere to import foreign oil into this country; $115 billion that, if it were going into the pockets of American farmers and multiplying those dollars throughout communities, would result in an economic revitalization of rural America the likes of which we have not seen in decades and which we couldn't create any other way, not through all the Government programs you want to imagine, just through the free market, through increased profitability for American agriculture, through the creation of cleaner burning fuels that are available right now and could be produced right now in quantities to significantly replace the gasoline that is consumed all over this country.
That is a real jobs amendment, one I will be introducing and hope we can consider as part of the JOBS Act, so we can make that bill live up to its name, one that will actually provide jobs for Americans rather than corporate tax giveaways for those who don't need them.
I yield the floor.
If the Senator will yield, I thank the Senator for the update on the overtime situation. I look forward to improved provisions from the Secretary of Labor. I thank the Senator also for his involvement and support to extend unemployment benefits. I know people in his State of Ohio, my State of Minnesota, and many States desperately need that. So I thank him.
Mr. President, tomorrow we will cast an important vote for our constituents. Once again we have come back to the Senate floor to press for legislative change on an issue that is critical to health…
Mr. President, tomorrow we will cast an important vote for our constituents. Once again we have come back to the Senate floor to press for legislative change on an issue that is critical to health care for all Americans. Time and again we have attempted to stop skyrocketing health care costs due to the runaway tort system under which trial lawyers abuse the court system with spurious claims that drive up insurance premiums for physicians and hospitals and drive them to practice expensive defensive medicine; in other words, performing costly and unnecessary procedures to be sure they won't be sued.
Last year I was a cosponsor of S. 11, the Patients First Act of 2003. The Democratic minority precluded us from completing work on that legislation. In February, we targeted a very narrow range of the medical profession to try to see if our colleagues would help us out in one area, the OB/GYN specialty, with S. 2061, called the Healthy Mothers and Healthy Babies Access to Care Act. Again the Democratic minority denied us cloture so we could not consider the bill.
It is time to stop this obstructionism. Here we are again. This time I hope my colleagues will join in voting for cloture so we may enact the needed reforms to the medical liability system.
This legislation addresses lawsuits for health care liability claims related to the provision of obstetrical, gynecological, emergency, or trauma care. With good reason, we again include the OB/GYN specialty. The dramatic increase in OB/GYN premiums--more than 160 percent over the last 16 years--has greatly outpaced the rate of inflation, and many physicians and hospitals have been unable to keep up with these escalating costs. In my State of Arizona, OB/GYN practices face premiums averaging $67,000, up 16 percent in just 1 year's time. Think of this for a moment. I am not sure what the average salary or wage of an American earner is today, but it is nowhere close to $67,000. That is what your OB/GYN doctor has to pay before he or she can even think about delivering your baby. That is the cost we have driven up.
My colleague from Iowa talked about the large number of people who can't afford health insurance. This is one of the reasons they can't afford health insurance. We have so driven up the cost of practicing medicine and the cost of health care by virtue of this broken tort system that a lot of people can't afford insurance and, in fact, employers can't afford to provide insurance for them. Let's do something about it. This legislation does something about it.
I would like to share the account of a physician in Paradise Valley, AZ, a woman with whom I spoke about 3 or 4 weeks ago who told me the story of her desire from the time she was a preteen to deliver babies and how she worked hard all through school to get good grades so she could go to medical school and eventually complete her residency. She did that. She had started out as a little girl volunteering in the hospital. She always wanted to deliver babies. After hard work and her degree, she ultimately delivered more than 5,000 babies over the course of 17 years. By the way, the vast majority were without any complications, and she has one of the best reputations as a physician in our community.
On one occasion, much to the surprise and dismay of the labor and delivery team, a baby was delivered with complications and cerebral palsy. While a group of doctors conducted a peer review of the case and determined there was no fault on the part of any of the physicians, the doctor who delivered the baby--this woman of whom I speak--3 years after the incident got sued.
Initially the plaintiff requested $2 million which was her insurance policy limit. Deciding it was better to settle and avoid long, costly litigation, the insurance company persuaded her to offer to settle the case, which she did. But then the plaintiff asked for $10 million from the physician and another $5 million from the hospital. This highly competent, highly dedicated, and motivated physician found herself consciously practicing medicine differently. For instance, performing a lot more cesarean deliveries in order to lessen the risk of complications to the baby, just in case. She was filled with a new anxiety that had never been present before. Frankly, she said it took a lot of joy out of the work she had enjoyed so much for the previous 17 years.
Eventually she stopped delivering babies because of the skyrocketing insurance premiums due to the claim that had been filed against her and, candidly, because of the trepidation she felt now she had been sued and the fact she might be sued again. Incidentally, her case was ultimately settled for less than the policy limits. But here is a
physician who was a tremendous contributor to the profession, to our community, to the health of mothers, and the health and viability of a lot of new babies. She is no longer practicing her profession because of the tort system. This physician's story is far too common. It needs to be addressed, and we can address it through the legislation before us.
In addition to the reforms for obstetricians and gynecologists, S. 2207 will cover physicians who treat patients in emergency circumstances--not just in the emergency room but in any emergency circumstance--from frivolous lawsuits. Many physicians find themselves distanced from what led them into the profession in the first place-- their desire to help people, just as the physician I talked about. Emergency rooms and trauma centers are flooded with patients who need help from accidents and disasters, all very unfavorable situations. These professionals give their very best to try to address the patient regardless of the circumstance, without even asking whether they have the ability to pay, focused on stabilizing the patients and providing excellent care.
Imagine the effect on the physician and the hospital when after treating a patient in an emergency situation, they are faced with a lawsuit, particularly a lawsuit that does not have merit or seeks an excessive award. The result is frequently the emergency rooms are understaffed, sometimes even have to close. The trauma centers are losing specialists and, in some cases, closing. The physicians are not there to provide this kind of emergency care.
Since no one knows exactly whether and where an emergency will take place, this legislation covers emergency services anywhere, not just those that occur in the emergency room. For example, if a family practitioner assists a person in an emergency at a mall where somebody had a heart attack, the doctor would be subject to the protection of this bill. If an internist helps a person in an automobile accident at the side of the highway and assists that individual, that care would also be protected by this legislation.
The benefit of this legislation is while it makes specific reference to the OB/GYN doctors, it also addresses any emergency services, not just those performed by emergency room physicians or in a trauma center.
As with previous bills, this legislation will hold physicians and insurers accountable for medical expenses in instances when they are clearly wrong. S. 2207 will maximize returns to the patients instead of the trial lawyers by setting percentage caps on contingency fees. These are the fees the lawyers receive. The bill would allow lawyers to be well compensated for their work but not at the unfair expense of the plaintiffs. Patients would have 3 years from the date of injury to bring forth a claim. In the case of minors, that statute of limitations would be extended.
The bill will allow for unlimited awards of economic damages but place reasonable caps on the so-called noneconomic damages or pain and suffering damages. If we can pass S. 2207, we should therefore see tremendous benefits: a reduction in the backlog of these cases in our courts; a reduction and perhaps elimination of these excessive jury awards; a reduction in the amount of money paid by the insurance companies to settle the cases. They incur great expenses in defending the cases in court and even processing the claims for settlement. Even those that are dismissed cost money. Physicians spend a large amount of money to defend themselves even in those cases they win. A large number of these cases are settled out of court to prevent the so-called mega award, the big award that can bankrupt a practice.
But something else will happen if we pass this bill. As I said, my colleague from Iowa complained about too many people not having insurance and one of the reasons why is because it has been expensed beyond their ability to pay or their employer's ability to pay. Why? Because the insurance company has to take into account these malpractice awards, even the possibility a physician will be sued. Imagine this: When a physician has to pay $67,000 in premiums for the ability to deliver babies, think about how that additional cost has to be shifted to the beneficiaries, the patients, the people who receive the care, because the insurance companies have to make sure whatever happens, their costs are covered.
So if we are going to talk about making it easier for people to get insurance, making it easier for physicians to be able to continue their practices, for hospital emergency rooms to continue to stay open, and all of the other kinds of care to be provided, even that situation where you have a wreck on the side of the road and a doctor stops and renders emergency care to you--any one of those situations--then we need to deal with this bill tomorrow.
This has been around far too long, and tomorrow is our opportunity to right this wrong, vote for cloture, and enable us to take a final vote on the bill. We should not condone a system that literally forces physicians to retire early, as the physician from Paradise Valley I spoke of had to do. Sometimes they relocate to a different State with friendlier laws. We should not force that either. Sometimes they drop high-risk services or they go into teaching or hospital administration. We lose a lot of very competent physicians that way. This leads not just to improper staffing among physicians, obviously; more important, it compromises patient care.
We have heard the patient and physician stories and we have seen the charts about the skyrocketing costs. We know of the facilities that have had to close, emergency rooms and labor and delivery sections--all as a result of the high cost of a broken tort system. I ask my Senate colleagues to join me in support of S. 2207 so we can provide quality health care to citizens across this Nation.
Mr. President, our constituents deserve nothing less, and that is all we are asking for tomorrow--to give our constituents a chance to receive the best health care they can receive, the best health care our system can provide. That is not occurring today and, far worse, it is going to continue to deteriorate in the future if we allow the trial lawyers and those who serve the trial lawyers to continue to obstruct this commonsense legislation.
I urge my colleagues to end the obstructionism, end the partisan bickering. Our constituents sent us here to accomplish and work together for sound results. Everyone knows we need this kind of reform. The vote tomorrow is a vote to determine whether there will be a final vote on the bill. It only takes 40 Senators on the other side to say, no, we won't allow a vote to occur. That is a filibuster. That is obstructionism. That is a negative, partisan unwillingness to allow the will of the majority to work on behalf of the people of this country.
I urge my colleagues tomorrow to please support the cloture vote, which will enable us to get to a final vote on this important bill. If we do that, I think we can go home this fall and all be very proud, whether we are Democrats or Republicans, or others, tell our constituents we accomplished something for them in the area that perhaps, other than freedom, is most important for every one of us, and that is quality health care. We owe our constituents nothing less.
Mr. President, I suggest the absence of a quorum.
Madam President, I thank my colleague from Missouri. I also paid close attention to his statement. I think it is a very important one. Madam President, how much time is remaining? I ask unanimous…
Madam President, I thank my colleague from Missouri. I also paid close attention to his statement. I think it is a very important one.
Madam President, how much time is remaining?
I ask unanimous consent that I be allowed an additional 10 minutes.
I thank the Chair.
Iraq
Madam President, I take the floor to respond to comments made by Senator Byrd, but also to general comments that have been made over the last 48 hours as we all recognize this is a very difficult time for us in Iraq.
I do not have to review with any of my colleagues the events of the last few days and the tragedies in the loss of these brave young Americans who are fighting and sacrificing for someone else's freedom.
I have also heard a number of observers, including some Senators, who have compared events in Iraq to what we went through in Vietnam. I happen to know something about Vietnam, and I know we do not face another Vietnam. I need not go into the long history of our involvement in that nation, the reasons for our failure, but the realities on the ground in Iraq are clear.
There is no superpower that is backing these minority of Shias and Sunnis who are seeking to gain political power through the use of a gun, and there is no comparison as far as the sanctuary which this enemy has. We grant them no sanctuary.
Some have stated we are on the defensive. I would argue that, as we speak, in Fallajuh and other places, our Marines and Army are on the offensive, dedicated to the proposition that no group, no matter what their ethnic or religious beliefs are, will take control of Iraq.
Control of Iraq will be the result of a democratic process and a representative one, part of which is the turning over of power to the Iraqi people on June 30.
We have had this argument back and forth: Should we turn over power of the government to the Iraqis on June 30? I say yes, and I say yes recognizing two realities. One is that it will be a difficult process, and we have a lot more planning to do between now and June 30 for that transition to take place. The other reality, as far as the security situation is concerned, is that America's military will be there in force for a significant period of time, and the American people need to be told that.
This is a long, tough, hard struggle. It is hard for countries to adopt democracies. It is incredibly difficult when they have never known democracy and freedom in the past. A little later, I want to talk a little bit more about what happens if we fail, as well as what happens if we succeed in Iraq.
Again, in Vietnam there was superpower support. There were arms and political support. We did not have a clear plan for victory, and dare I mention that in Vietnam many times we had more casualties in a week, sometimes less than a week, than we have had in a year in Iraq.
To make these comparisons with the Tet offensive or the entire Vietnam conflict is not only uninformed but I think a bit dangerous because, of course, the specifics of our involvement in that conflict fade, as they should, in the memories of the American people.
What is happening in Iraq today is we have a Sunni insurgency that consists of ex-Baathists and Saddam loyalists. They obviously are the only people who were better off during Saddam Hussein's regime because they were the favored minority that were of the same religion as Saddam. They realize they will never run Iraq again because they are in the minority. Because they are in the majority, the Shia will probably dominate that government, but we also have a constitution in Iraq that guarantees the rights of minorities. We are there and a new government will be there to guarantee those same rights.
The realities are the Sunni minority will never control Iraq again. We have a small minority of Shias who are trying to grab some political power before the July 1 transition. There is very little doubt that Sadr's followers are in a distinct minority and the majority of Shias still owe allegiance and have allegiance to the Ayatollah Sistani, who has argued, perhaps not forcefully enough, that we do not have the kind of armed conflict that we are seeing today.
Is this a difficult political problem? Yes. Is it the time to panic, to cut and run? Absolutely not. The vast majority of Iraqi people are glad we are there and they state unequivocally that they are better off than they were under the regime of Saddam Hussein. Lest time dim our memory, let us remember the mass graves that we discovered, the 8- and 9-year-old boys coming out of prison in Baghdad, the despotic, incredibly cruel practices of his two sons. The people of Iraq and America and the world are better off with Saddam Hussein gone.
Now, we can argue about intelligence; we can argue about weapons of mass destruction. That is why we have commissions. That is why tomorrow, in an almost unprecedented fashion, the National Security Adviser to the President will testify before the 9/11 Commission. I am confident she will perform admirably because she is an incredibly intelligent and capable individual.
The fact is, to argue that we should have left Iraq under the rule of this incredibly cruel person who used weapons of mass destruction, who had weapons of mass destruction in 1991, was continuing to attempt to acquire weapons of mass destruction, and if in power would continue to try to acquire those weapons, certainly flies in the face of the facts about Saddam Hussein's regime.
Senator Byrd says we should not have gone into Iraq in the first place and that we should not be there now. I respect the view. I strongly disagree with it, and I think the facts indicate that is not the case. We could argue for days about it, but right now at this moment we need to send a message not only to the Sunnis in Iraq and the minority of Shias in Iraq who are taking up arms and killing Americans that we are there to stay. We are there to stay and we will see it through. If we fail, if we cut and run, the results can be disastrous. Those results would be the fragmentation of Iraq, to start with, on ethnic and religious lines. The second result would be an unchecked hotbed of training ground and birthing of individuals who are committed to the destruction of the United States of America.
We will never solve the war on terror as long as there are millions of young men standing on street corners all over the Middle East with no hope, no job, no opportunities, no future. They are the breeding ground. They are the ones who are taken off the streets and taken into the madrasahs--funded by the Saudis, by the way--and taught to hate and kill, and who want to destroy America, the West, and all we believe in. Their hatred is not confined to the United States of America, as the citizens of Spain have found out, much to their dismay and tragedy.
What happens if we win? What happens if we see this thing through? It will be hard and it will be difficult and perhaps we need more troops. I have said for a long time that we needed more troops of certain types, but we have to see this thing through. And what will happen? What will happen is that we will affirm the profound and fundamental belief upon which this Nation was founded, that all men and women are created equal and endowed by their Creator with certain unalienable rights, and they are not just in the Western Hemisphere; they are not just in the United States of America; they are not just in Europe. The people in the Middle East have the same hopes, beliefs, and yearnings for freedom and democracy, and they have a right to determine their own future just as have our own citizens and citizens throughout the world.
When they achieve that--and it will be long and hard and difficult-- it will send a message to every despotic regime, every religious extremist throughout the Middle East, their day is done because in a democratic, free, and open society the people want to live in peace with their neighbors and with the world.
So there is a lot at stake. I grieve every moment, as every American does, for the loss of these brave young
Americans' lives. They have made a supreme sacrifice, and we will honor their memory, but at least their grieving families will know they sacrificed in the cause of freedom.
At this particular moment of crisis--and it is a crisis--I urge all of my colleagues and all Americans to join together in this noble cause. Yes, we are free to criticize; yes, we are free to make recommendations and suggestions; but the awesome responsibility lies with all of us, led by the President of the United States, as we attempt to carry out what is the most noble act that no country in the world has ever done besides the United States of America, and that is to shed our most precious blood and expend our treasure in defense of someone else's freedom in the hope that they may enjoy the fruits of a free and open society in a democracy that is guaranteed to all men and women by our Creator.
I yield the floor.
Mr. President, when we first began the Senate debate on S. 1637 in March, the intended purpose of the measure was to resolve appropriately the controversy between the United States and the European Union over the extraterritorial income, ETI, exemption tax benefit for exports. Almost all of us recognize the critical need to pass legislation to bring the United States back into compliance with World Trade Organization, WTO, agreements and stop the burdensome tariffs now imposed on our manufacturers. Unfortunately, achieving the legislation's worthy purpose is in jeopardy due to a host of special interest tax provision add-ons. I do not support these latest add-ons and, as such, must vote against today's cloture vote.
When S. 1637 was presented to the Senate, it was a 378-page bill. Although only one roll call vote has occurred on an amendment during the floor consideration, the bill had grown to some 527 pages by the last cloture vote on March 22. I reluctantly voted for cloture, voicing my strong concerns about the direction the bill was going at the time. But instead of reigning in the special interest add-ons, they are only growing further. The bill has now grown to a 929-page Easter basket of goodies, but with almost no debate or votes on its provisions, including the latest addition of $13 billion in energy-related tax breaks.
I recognize the strong interest of the chairman of the Energy Committee and others to pass an energy bill. I wish that I could support the bill that the committee has developed, but in its current form I cannot. But I can assure the proponents of the energy legislation that to now shift $13 billion in costs from their bill to the JOBS bill is not the way to gain support for an energy bill. Instead, they need to develop an energy bill that is more evenly balanced between stimulating the supply of conventional fuels and promoting alternative fuels and energy efficiency.
If the Senate is to consider an energy tax incentive bill or an energy authorizing bill, we should be following regular order, and bringing legislation to the floor and debating in its own right. Instead, we are being asked to simply accept a 362-page energy bill add-on without debate or further amendments.
With our limited legislative time during this election year, the Senate would serve the American public far better if it stayed focused on accomplishing the intended purpose of legislating. Unfortunately, the JOBS bill, which is a much needed bill, is being dragged down with the unnecessary weight of billions of dollars in wasteful subsidies, tax breaks, and special exemptions for special interest industries. With the Nation facing a half-trillion dollar deficit, now is not the time for Congress to be enacting new tax credits and carving out sweet deals for special interests.
Mr. President, I want to briefly address a conference report that we will hopefully be voting on in the Senate this week; that is, the conference report called the Pension Funding Equity Act. The…
Mr. President, I want to briefly address a conference report that we will hopefully be voting on in the Senate this week; that is, the conference report called the Pension Funding Equity Act.
The House of Representatives passed this bill overwhelmingly last week. This is a bill that addresses the urgent need to establish an appropriate interest rate for determining pension plan liabilities. The conference agreement provides for a temporary replacement only for the 30-year Treasury bond in determining the pension plan's liabilities.
The Government stopped issuing this bond in 2001, and continuing to use this outdated interest rate would require companies to make unnecessarily large contributions to the pension plans.
If this change is not made, the administration estimates it will cost American companies $80 billion over the next 2 years. This is $80 billion over the next 2 years, not the standard 10 years by which we usually measure legislation.
This is $80 billion that companies could put to better use creating jobs, purchasing equipment, providing raises to workers, or pursuing any number of worthwhile business activities.
This is legislation that cannot wait. It needs to be passed this week. A previous temporary replacement rate expired January 1 of this year, 2004. Unless the Senate acts prior to the recess, by the end of this week, companies will be required to make the first of their inflated contributions based on the flawed interest rate on April 15, while we are not here. So this is it; the last opportunity to address this great inequity is this week. Again, these are funds that companies could otherwise use to create jobs, invest in new equipment, and provide raises to workers.
I believe I am safe in saying that every Member of the body has heard from his or her constituents about the need to solve this problem before April 15. The House recognized the urgency of this matter and passed this conference agreement on a bipartisan vote of 336 to 69 last Friday. That was an overwhelming bipartisan recognition that this conference report needs to become law and needs to become law now. It is critically important that the Senate do the same and send this to the President for his signature before April 15.
We spend a lot of time talking about jobs and job security on the Senate floor, and we should be talking about jobs and job security. This pensions conference report is an opportunity to stop talking and start acting. We ought to seize this opportunity and pass this very much needed legislation this week.
I yield the floor.
Will the Senator yield for a question?
It occurs to the Senator from Kentucky, in listening to observations of the Senator from Alabama, what has evolved in America is that we believe we are a society of victims, everybody is a victim? If somebody is wrong in my life, if I have a bad outcome in my life, it must be somebody else's fault. So beyond the obvious abuse of the legal system, it encourages the notion that personal responsibility is no longer a factor in American life.
I ask my friend from Alabama if he is also disturbed about this growing notion that I have no responsibility for the outcomes in my life, if anything goes wrong it must be somebody else's fault and obviously the solution to that is to sue.
Mr. President, before the Senator from Alabama leaves, I want to thank him again for the hearings he held on the Commonsense Consumption Act, not the bill before us today but another measure that makes, as the title implies, common sense. The common sense embedded in that bill is that it is improper to sue a food manufacturer or a distributor for damages claiming that the seller made you overweight. It is simple justice. It would not deny any of the traditional claims against a distributor or manufacturer of food, but it would prevent such a ridiculous lawsuit.
The American people overwhelmingly support this legislation by well up into the 80 percent. The legislation passed the House of Representatives by an overwhelming bipartisan vote and is at the desk in the Senate. Hopefully sometime this year we will get an opportunity to call that up and see if maybe the Senate will let us at least pass a very modest legal reform bill that deals with a problem that is beginning to evolve in our society of victimhood.
The Senator from Alabama is correct. That is, of course, the underlying principle of this legislation. I thank him for having the hearing and for giving people an opportunity to come forward and have their say on this important legislation.
As I said, it is at the desk and we hope sometime during the course of the second session of this Congress we will have a chance to address it.
That is what we always were taught. As the Senator indicated, in school that is what tort law was about. If one was not negligent, if they did not cause the harm, they should not be held liable. We have gotten away from that in this country. It is a very dangerous trend. It is time for the Congress of the United States to begin to redress this imbalance. I thank my friend from Alabama.
Mr. President, on the matter before us upon which we will be voting cloture on the motion to proceed tomorrow, the Pregnancy and Trauma Care Protection Act introduced by Senator Gregg and Senator Ensign, this is our third attempt this Congress and our second attempt in 6 weeks to try to do something about the medical liability crisis that is forcing patients all across the country to go without critically important medical services. On both previous occasions, a majority of the Senate has voted to try to solve this problem.
Unfortunately, though, only one brave soul on the other side of the aisle voted to support even taking up such a measure.
But hope springs eternal and maybe the third time is a charm. So we come back to the Senate to try once again to give our colleagues on the other side of the aisle a chance to join us in implementing real reforms for a problem that is all too real for many of our fellow citizens.
As we did the last two times, we brought reform legislation to the floor. We are offering the American people a proven remedy--not a placebo. The bill we hope our colleagues will let us consider, like its two predecessors, is based upon California's successful MICRA reforms. The Pregnancy and Trauma Care Access Protection Act would allow plaintiffs to recover unlimited economic damages--up to a quarter of a million dollars in noneconomic damages and punitive damages up to the greater of a quarter million dollars or twice the economic damages.
We recognize the reluctance of some of our colleagues to implement MICRA's reform on a nationwide scale, proven though these reforms are. So rather than propose the comprehensive reform we tried to advance last year for all medical practitioners, we are attempting a modest first step. The provisions in S. 2207 would apply only to two of the medical specialties that are suffering the most in this crisis: OB/GYNs and emergency care services. That is all this bill would touch.
Though extremely modest in scope, this bill is crucial to protecting the doctors who practice in these two areas and the millions of American patients who rely on them. For example, OB/GYNs provide some of the most critical medical services. Sadly, they also bear the highest premiums. As a result, women and children across our country are placed in danger as they struggle oftentimes unsuccessfully to find even basic obstetrics care.
In addition, emergency room doctors are the primary care physicians for many Americans. According to the Alliance of Specialty Medicine, each year there are 110 million visits to emergency departments. More than 90 percent of these visits are patients who need to be seen in 2 hours or less. And approximately 28.3 million Americans visit the emergency room each year due to an accident or unintentional injury. Ninety-nine percent of those patients will recover after receiving lifesaving care from an ER or trauma center.
Thus, when ER doctors and trauma care physicians curtail their practices or go out of business altogether because of the medical liability crisis, the people who suffer the most obviously are the American families.
Let us turn to the crisis in Kentucky. This chart illustrates Kentucky's crisis in obstetric services.
Sixty percent of Kentucky's counties are without OB/GYNs.
This chart takes a look at the counties. The red counties, which the occupant of the Chair and our colleagues can see, are many counties. Sixty-nine of one hundred twenty counties in Kentucky have no OB/GYN.
In addition to that, the next chart illustrates the availability of emergency services in Kentucky. 43 percent of Kentucky's counties are without emergency room physicians. That is 52 of the 120 counties.
All of the red counties all across the Commonwealth of Kentucky have no ER doctor at all--none.
Another 21 percent of Kentucky counties have only one specialist in emergency medicine for the entire county.
So you can see in our State, the Commonwealth of Kentucky, there is a serious crisis--an absence of OB/GYN care and an absence of emergency room doctors. A principal reason for that, not surprisingly, is the medical malpractice crisis that we have in the Commonwealth of Kentucky.
This is a serious problem. We have county after county in crisis. Just to give you an example, Perry County in southeastern Kentucky technically has a practicing OB/GYN. But that one doctor stopped delivering babies during the last year. If you are in Perry County, it doesn't do you much good. They have an OB/GYN but she does not deliver babies.
Eighty-two of Kentucky's one hundred twenty counties don't have either an obstetrician or have one obstetrician.
This is a serious problem in the Commonwealth of Kentucky.
Six weeks ago, when we were asking our colleagues to consider the Healthy Mothers and Healthy Babies Access to Care Act--S. 2061-- I discussed the crisis in obstetric and gynecological services in my home State of Kentucky.
Kentucky does not have liability reform. Not surprisingly, liability insurance rates for OB's in Kentucky, for example, increased 64 percent in just 1 year, from 2002 to 2003. Also not surprisingly, in just the last 3 years, Kentucky has lost one-fourth of its obstetricians. Moreover, Kentucky has lost nearly half its potential obstetric services during this time, when one factors in doctors who have limited their practices.
According to the Kentucky Medical Association, 60 percent of the counties in Kentucky do not have any OB-GYNs.
Other counties, such as Perry County in southeastern Kentucky, technically have a practicing OB-GYN, but that one doctor has stopped delivering babies within the last year. So if you are in Perry County, that doesn't do you much good.
Another 8 counties--like Greenup, Lawrence, and Johnson Counties in northeast Kentucky--have just one OB-GYN in each county.
So if you are a woman in these counties, you had better hope that there isn't another woman having a baby at the same time you are, or that the doctor is not out of town or busy with another patient. If that happens, then you are going to have to drive through the hills on the back roads of eastern Kentucky to try to find a doctor to deliver your baby.
All told, 82 of Kentucky's 120 counties have no OB's or have just one
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, the Pregnancy and Trauma Care Access Protection Act of 2004 that is now before the Senate is a…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, the Pregnancy and Trauma Care Access Protection Act of 2004 that is now before the Senate is a matter of very real importance to real Americans. I have a good friend, an obstetrician, in Mobile, AL. We go to church together. He teaches Sunday school class. He is a former president of the State association, as I recall. He was talking to me at church a few months ago about a doctor who left the practice. His malpractice insurance was around $80,000, and he delivered around 80 children a year. That is $1,000 per delivery that doctor paid for malpractice insurance.
This is a reality. I was with a doctor I know from the group that treats my mother in Mobile, AL, just a week ago, and he told me people in the profession are retiring earlier and earlier because they are getting tired of the stress and
strain of being micro-managed through litigation; that people do not have to do that after a number of years and good people are leaving the practice over this issue.
Everybody in this body will say we need to do something about it; it is time for us to fix it; there is a problem; and we need to do this and that. But there is a strong influence, I have to say, from the trial bar in the Senate. They are very active politically, everybody knows it. They are aggressive, and they contribute large sums of money. Just a very few lawyers contribute large sums of money to political campaigns, and so far they have been able to block reforms.
The Senator from Kentucky, the assistant majority leader, Mr. McConnell, proposed legislation that would eliminate lawsuits against restaurants and food companies if somebody gets fat. You go to the store and you ask for Little Debbie's. They sell them to you. That is what you want, isn't it, for Heaven's sake? They want to sue the company that gave the customer what they wanted. It is legal, so there should not be a cause of action under any definition of law.
At that hearing, the premier witness, without a doubt, was Professor Schwartz, who is the editor of the most widely used textbook on torts in America. We got into a little bit of a philosophical discussion because some people suggest that it somehow is not legitimate that we in Congress should pass a law involving lawsuits; that it ought to be left to the sanctified courts; that they are somehow better than the political branch, and that we ought to never pass a law that affects the courts. Of course, that is hogwash. I asked him about that, and he said it plainly and we discussed it at some length.
Congress says what the statute of limitations is. If you file a lawsuit within 2 years, 5 years, 6 years, but 1 day late, you have no lawsuit; it is out; the statute of limitations runs. Congress sets that limitation. Every State has limitations on damages. We create causes of actions that have never existed before by explicit statutory action.
There is a law in the code that if somebody rolls back your odometer and you sue them, you get an automatic $1,500 if you can prove they rolled back your odometer. In Kentucky, I am sure they roll back some odometers. Most cars we get in Alabama are rolled back in Tennessee, Mr. President, and are shipped to the State. We created that cause of action--it never existed before--for actual damages, whatever would be sufficient. I filed a lawsuit under it one time.
I say all that to say Professor Schwartz is correct. We have every right to look at what is happening in America. I am not going to talk at length tonight, but I say we have a serious problem in this country that is impacting health care in America. It is reducing the number of physicians who are willing to practice, particularly to deliver babies.
I was in Ashland, AL, the hometown of Gov. Bob Riley of Alabama, in Clay County. I visited their hospital because our prescription drug bill did a lot for rural hospitals. We had a big meeting and everybody was there. They talked about how the year before they had given up the delivery of babies in Ashland, AL, at that hospital. They no longer deliver babies in the State. I have some numbers that were pretty dramatic to me that indicated how many of these hospitals had quit delivering children. Why? Because they get sued. The amount of malpractice it takes to do that is rather dramatic.
According to the Alabama Department of Public Health, only 58 hospitals in Alabama have labor and delivery services. That is down from 70 in 1999. Twelve hospitals since 1999 have quit delivering children. Only 14 of the hospitals that are left have full-time neonatologists and neonatal intensive care units. Those 14 are located in the five biggest cities: Birmingham, Montgomery, Mobile, Huntsville, and Tuscaloosa.
Those are big issues. Thirty-four of the 67 counties in the State do not have OB delivery services. That was not true 30 years ago. This is a recent trend. Sometimes it is better, I will admit, that a person go to a hospital, but we have a lot of people who believe in midwives because of the bonding and the personal attention a mother gets. They believe in that. I am not a believer in that. But a good doctor who knows the family, who knows the mother, maybe they go to church together, who cares about the family, used to deliver babies in a large way in Alabama. That kind of practice is going away today. We are creating a circumstance in which fewer and fewer people are willing to undergo that type of practice.
Health insurance is way up. The delivery of health care has been constricted as a result of unnecessary, oftentimes illegitimate lawsuits. In fact, it has almost gotten to the point where a physician who delivers a child is held to be a guarantor of the healthiness of that child.
If something is wrong, too often somebody looks around to find somebody to sue; the doctor who did it or the hospital in which it was delivered is the one who is sued.
I would be delighted to.
I think the Senator from Kentucky is exactly correct. We do have far too much of that. We have a lawsuit lottery mentality, jackpot justice. People file suits and they seek huge amounts of money in hopes they will recover.
My daughter does some defense work in a law firm. She is a lawyer. She was telling me about a nursing home case, and a person had bed sores, and there was a big lawsuit. She said, you know what they discovered? They had learned in some way that Ronald Reagan had bed sores.
These kind of things can happen, but they were having to pay a large amount of money. Maybe they were negligent, maybe they deserved to pay, but I just say there is this mentality that if something goes wrong somebody has to pay. As the Senator from Kentucky knows, the one who pays is the one who has insurance. That means the hospital or the doctor normally. They are the ones who are getting whacked. It may be that nobody investigated to see if maybe the mother drank alcohol too much during the pregnancy or something. Any number of things could have occurred that would have caused that.
I conclude by saying I am pleased to see this legislation move forward. It is not insignificant. I am hearing from my physicians that they feel strongly that the quality of their lives, as well as the excellence of their practice, have been adversely impacted by litigation.
A doctor was in my office recently who is a leader in the medical association. He said, Jeff, I am telling you maybe as much as 50 percent of the medicine we practice is driven out of fear of lawsuits. We could reduce the cost of medicine by a tremendous degree if we could contain the threat of lawsuits.
There is no doubt that lawsuits have recompensed people who needed it for a wrong. When a person commits a wrong, they should pay. There is no doubt about it. I know the Presiding Officer and the Senator from Kentucky, in their law school there was a community standard of excellence.
Everybody is not expected to be the best surgeon in America. Everyone is not expected to be the best lawyer in America. Take somebody who is a professional and they were expected to give the best skilled work they could give under the circumstances. They should not be found negligent. They should not ignore a patient. They should not fail to give the kind of care
that everybody knows ought to be given. But just because one person has a steadier hand or has more experience maybe and can do a surgery slightly better than another one does not mean, and never has meant under American law, that there is a liability question.
I think the Senator from Kentucky is correct. What has concerned me is the erosion of the standard of negligence and error. A physician or a hospital should commit an error, negligence, before they should be required to compensate someone who has had an unfortunate result in that hospital. We have gotten away from that.
This bill, of course, allows for full recompense for damages and injury for any cost for medical care; any cost for future treatment or hospitalization, which in a lifetime could be millions of dollars; $250,000 in pain and suffering, in addition to the compensatory costs; and $250,000 or twice the compensatory damages for punitive damages. Those things are allowed for in the bill; it just simply says there is a limit.
When a person can sue somebody for $50 million and get a jury--juries really have a difficult time deciding between $2 million and $30 million, and they come up with $15 million. How did they come up with that number? This says that one gets fully compensated for however much it costs, for any damages that are sustained as a result of the negligence of a physician. In addition to that, one can get punitive damages and pain and suffering, but it is limited. I think that would go a long way to making lawsuits settleable so both sides know the framework they are operating under. Then a lawsuit can be settled. Without a limit on the top, it is very difficult to settle that lawsuit.
I believe this is good legislation. I hope it can move forward. I hope we do not see it obstructed and blocked as we have others. I hope we can get an up-or-down vote.
I yield the floor.
If the Senator will yield, I would note that Professor Schwartz, as I said, the editor of the most utilized textbook on lawsuits and torts in America, strongly supports the legislation. He feels it is appropriate. I will ask the Senator, does he not agree, based on his experience as an attorney, that we have muddled over and glossed over the question of fault?
In the Senator's bill, if they sell food that is contaminated and a person gets sick, if they sell food that has a bug in it or something, somebody can still sue. If the food is unhealthy a person can sue, but if it is perfectly healthy food and it is the food one ordered they ought not to be able to bring a lawsuit. Is that not the intent of the Senator's legislation?
One more question. Has not the question of fault always been the cornerstone of American law with regard to lawsuits and negligence and liability, that somebody has to be at fault, have done something beyond the standard of care to cause a damage? That is when there is a lawsuit. Is not getting away from that one of the reasons that we are having so much abuse in the legal system?
Bill Text
2 versions available
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2207 Placed on Calendar Senate (PCS)]
Calendar No. 462
108th CONGRESS
2d Session
S. 2207
To improve women's access to health care services, and the access of
all individuals to emergency and trauma care services, by reducing the
excessive burden the liability system places on the delivery of such
services.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 12, 2004
Mr. Gregg (for himself and Mr. Ensign) introduced the following bill;
which was read the first time
March 22, 2004
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To improve women's access to health care services, and the access of
all individuals to emergency and trauma care services, by reducing the
excessive burden the liability system places on the delivery of such
services.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Pregnancy and Trauma Care Access
Protection Act of 2004''.
SEC. 2. ENCOURAGING SPEEDY RESOLUTION OF CLAIMS.
(a) In General.--Except as otherwise provided for in this section,
the time for the commencement of a health care lawsuit shall be 3 years
after the date of manifestation of injury or 1 year after the claimant
discovers, or through the use of reasonable diligence should have
discovered, the injury, whichever occurs first.
(b) General Exception.--The time for the commencement of a health
care lawsuit shall not exceed 3 years after the date of manifestation
of injury unless the tolling of time was delayed as a result of--
(1) fraud;
(2) intentional concealment; or
(3) the presence of a foreign body, which has no
therapeutic or diagnostic purpose or effect, in the person of
the injured person.
(c) Minors.--An action by a minor shall be commenced within 3 years
from the date of the alleged manifestation of injury except that if
such minor is under the full age of 6 years, such action shall be
commenced within 3 years of the manifestation of injury, or prior to
the eighth birthday of the minor, whichever provides a longer period.
Such time limitation shall be tolled for minors for any period during
which a parent or guardian and a health care provider or health care
organization have committed fraud or collusion in the failure to bring
an action on behalf of the injured minor.
SEC. 3. COMPENSATING PATIENT INJURY.
(a) Unlimited Amount of Damages for Actual Economic Losses in
Health Care Lawsuits.--In any health care lawsuit, nothing in this Act
shall limit the recovery by a claimant of the full amount of the
available economic damages, notwithstanding the limitation contained in
subsection (b).
(b) Additional Noneconomic Damages.--In any health care lawsuit,
the amount of noneconomic damages recovered, if otherwise available
under applicable Federal or State law, may be as much as $250,000,
regardless of the number of parties against whom the action is brought
or the number of separate claims or actions brought with respect to the
same injury.
(c) No Discount of Award for Noneconomic Damages.--In any health
care lawsuit--
(1) an award for future noneconomic damages shall not be
discounted to present value;
(2) the jury shall not be informed about the maximum award
for noneconomic damages under subsection (b);
(3) an award for noneconomic damages in excess of $250,000
shall be reduced either before the entry of judgment, or by
amendment of the judgment after entry of judgment, and such
reduction shall be made before accounting for any other
reduction in damages required by law; and
(4) if separate awards are rendered for past and future
noneconomic damages and the combined awards exceed $250,000,
the future noneconomic damages shall be reduced first.
(d) Fair Share Rule.--In any health care lawsuit, each party shall
be liable for that party's several share of any damages only and not
for the share of any other person. Each party shall be liable only for
the amount of damages allocated to such party in direct proportion to
such party's percentage of responsibility. A separate judgment shall be
rendered against each such party for the amount allocated to such
party. For purposes of this section, the trier of fact shall determine
the proportion of responsibility of each party for the claimant's harm.
SEC. 4. MAXIMIZING PATIENT RECOVERY.
(a) Court Supervision of Share of Damages Actually Paid to
Claimants.--
(1) In general.--In any health care lawsuit, the court
shall supervise the arrangements for payment of damages to
protect against conflicts of interest that may have the effect
of reducing the amount of damages awarded that are actually
paid to claimants.
(2) Contingency fees.--
(A) In general.--In any health care lawsuit in
which the attorney for a party claims a financial stake
in the outcome by virtue of a contingent fee, the court
shall have the power to restrict the payment of a
claimant's damage recovery to such attorney, and to
redirect such damages to the claimant based upon the
interests of justice and principles of equity.
(B) Limitation.--The total of all contingent fees
for representing all claimants in a health care lawsuit
shall not exceed the following limits:
(i) 40 percent of the first $50,000
recovered by the claimant(s).
(ii) 33\1/3\ percent of the next $50,000
recovered by the claimant(s).
(iii) 25 percent of the next $500,000
recovered by the claimant(s).
(iv) 15 percent of any amount by which the
recovery by the claimant(s) is in excess of
$600,000.
(b) Applicability.--
(1) In general.--The limitations in subsection (a) shall
apply whether the recovery is by judgment, settlement,
mediation, arbitration, or any other form of alternative dispute
resolution.
(2) Minors.--In a health care lawsuit involving a minor or
incompetent person, a court retains the authority to authorize
or approve a fee that is less than the maximum permitted under
this section.
(c) Expert Witnesses.--
(1) Requirement.--No individual shall be qualified to
testify as an expert witness concerning issues of negligence in
any health care lawsuit against a defendant unless such
individual--
(A) except as required under paragraph (2), is a
health care professional who--
(i) is appropriately credentialed or
licensed in 1 or more States to deliver health
care services; and
(ii) typically treats the diagnosis or
condition or provides the type of treatment
under review; and
(B) can demonstrate by competent evidence that, as
a result of training, education, knowledge, and
experience in the evaluation, diagnosis, and treatment
of the disease or injury which is the subject matter of
the lawsuit against the defendant, the individual was
substantially familiar with applicable standards of
care and practice as they relate to the act or omission
which is the subject of the lawsuit on the date of the
incident.
(2) Physician review.--In a health care lawsuit, if the
claim of the plaintiff involved treatment that is recommended
or provided by a physician (allopathic or osteopathic), an
individual shall not be qualified to be an expert witness under
this subsection with respect to issues of negligence concerning
such treatment unless such individual is a physician.
(3) Other health care providers.--With respect to a lawsuit
described in paragraph (1), a court shall not permit an expert
in one health care provider field to testify against a
defendant in another health care provider field unless, in
addition to a showing of substantial familiarity in accordance
with paragraph (1)(B), there is a showing that the standards of
care and practice in the two health care provider fields are
similar.
(4) Limitation.--The limitations in this subsection shall
not apply to expert witnesses testifying as to the degree or
permanency of medical or physical impairment.
SEC. 5. PROMOTING FAIRNESS IN RECOVERING HEALTH BENEFITS AND PREVENTING
DOUBLE RECOVERIES.
(a) In General.--The amount of any damages received by a claimant
in any health care lawsuit shall be reduced by the court by the amount
of any collateral source benefits to which the claimant is entitled,
less any insurance premiums or other payments made by the claimant (or
by the spouse, parent, child, or legal guardian of the claimant) to
obtain or secure such benefits.
(b) Preservation of Current Law.--Where a payor of collateral
source benefits has a right of recovery by reimbursement or subrogation
and such right is permitted under Federal or State law, subsection (a)
shall not apply.
(c) Application of Provision.--This section shall apply to any
health care lawsuit that is settled or resolved by a fact finder.
SEC. 6. PUNITIVE DAMAGES.
(a) Punitive Damages Permitted.--
(1) In general.--Punitive damages may, if otherwise
available under applicable State or Federal law, be awarded
against any person in a health care lawsuit only if it is
proven by clear and convincing evidence that such person acted
with malicious intent to injure the claimant, or that such
person deliberately failed to avoid unnecessary injury that
such person knew the claimant was substantially certain to
suffer.
(2) Filing of lawsuit.--No demand for punitive damages
shall be included in a health care lawsuit as initially filed.
A court may allow a claimant to file an amended pleading for
punitive damages only upon a motion by the claimant and after a
finding by the court, upon review of supporting and opposing
affidavits or after a hearing, after weighing the evidence,
that the claimant has established by a substantial probability
that the claimant will prevail on the claim for punitive
damages.
(3) Separate proceeding.--At the request of any party in a
health care lawsuit, the trier of fact shall consider in a
separate proceeding--
(A) whether punitive damages are to be awarded and
the amount of such award; and
(B) the amount of punitive damages following a
determination of punitive liability.
If a separate proceeding is requested, evidence relevant only
to the claim for punitive damages, as determined by applicable
State law, shall be inadmissible in any proceeding to determine
whether compensatory damages are to be awarded.
(4) Limitation where no compensatory damages are awarded.--
In any health care lawsuit where no judgment for compensatory
damages is rendered against a person, no punitive damages may
be awarded with respect to the claim in such lawsuit against
such person.
(b) Determining Amount of Punitive Damages.--
(1) Factors considered.--In determining the amount of
punitive damages under this section, the trier of fact shall
consider only the following:
(A) the severity of the harm caused by the conduct
of such party;
(B) the duration of the conduct or any concealment
of it by such party;
(C) the profitability of the conduct to such party;
(D) the number of products sold or medical
procedures rendered for compensation, as the case may
be, by such party, of the kind causing the harm
complained of by the claimant;
(E) any criminal penalties imposed on such party,
as a result of the conduct complained of by the
claimant; and
(F) the amount of any civil fines assessed against
such party as a result of the conduct complained of by
the claimant.
(2) Maximum award.--The amount of punitive damages awarded
in a health care lawsuit may not exceed an amount equal to two
times the amount of economic damages awarded in the lawsuit or
$250,000, whichever is greater. The jury shall not be informed
of the limitation under the preceding sentence.
(c) No Punitive Damages for Products That Comply With FDA
Standards.--
(1) In general.--No punitive damages may be awarded against
the manufacturer, distributor, supplier, marketer, promoter, or
seller of a medical product used in direct connection with the
provision of obstetrical or gynecological services, or
emergency or trauma care services based on a claim that such
product caused the claimant's harm where--
(A)(i) such medical product was subject to
premarket approval or clearance by the Food and Drug
Administration with respect to the safety of the
formulation or performance of the aspect of such
medical product which caused the claimant's harm or the
adequacy of the packaging or labeling of such medical
product; and
(ii) such medical product was so approved or
cleared; or
(B) such medical product is generally recognized
among qualified experts as safe and effective pursuant
to conditions established by the Food and Drug
Administration and applicable Food and Drug
Administration regulations, including without
limitation those related to packaging and labeling,
unless the Food and Drug Administration has determined
that such medical product was not manufactured or
distributed in substantial compliance with applicable
Food and Drug Administration statutes and regulations.
(2) Liability of health care providers.--A health care
provider who prescribes, or who dispenses pursuant to a
prescription, a drug or device (including blood products)
approved by the Food and Drug Administration for use in direct
connection with the provision of obstetrical or gynecological
services, or emergency or trauma care services shall not be
named as a party to a product liability lawsuit invoking such
drug or device and shall not be liable to a claimant in a class
action lawsuit against the manufacturer, distributor, supplier,
marketer, promoter, or seller of such drug or device.
(3) Packaging.--In a health care lawsuit for harm which is
alleged to relate to the adequacy of the packaging or labeling
of a drug which is required to have tamper-resistant packaging
under regulations of the Secretary (including labeling
regulations related to such packaging), the manufacturer,
distributor, supplier, marketer, promoter, or seller of the
drug shall not be held liable for punitive damages unless such
packaging or labeling is found by the trier of fact by clear
and convincing evidence to be substantially out of compliance
with such regulations.
(4) Exception.--Paragraph (1) shall not apply in any health
care lawsuit in which--
(A) a person, before or after premarket approval or
clearance of such medical product, knowingly
misrepresented to or withheld from the Food and Drug
Administration information that is required to be
submitted under the Federal Food, Drug, and Cosmetic
Act (21 U.S.C. 301 et seq.) or section 351 of the
Public Health Service Act (42 U.S.C. 262) that is
material and is causally related to the harm which the
claimant allegedly suffered; or
(B) a person made an illegal payment to an official
of the Food and Drug Administration for the purpose of
either securing or maintaining approval or clearance of
such medical product.
SEC. 7. AUTHORIZATION OF PAYMENT OF FUTURE DAMAGES TO CLAIMANTS IN
HEALTH CARE LAWSUITS.
(a) In General.--In any health care lawsuit, if an award of future
damages, without reduction to present value, equaling or exceeding
$50,000 is made against a party with sufficient insurance or other
assets to fund a periodic payment of such a judgment, the court shall,
at the request of any party, enter a judgment ordering that the future
damages be paid by periodic payments. In any health care lawsuit, the
court may be guided by the Uniform Periodic Payment of Judgments Act
promulgated by the National Conference of Commissioners on Uniform
State Laws.
(b) Applicability.--This section applies to all actions which have
not been first set for trial or retrial before the effective date of
this Act.
SEC. 8. EFFECT ON OTHER LAWS.
(a) General Vaccine Injury.--
(1) In general.--To the extent that title XXI of the Public
Health Service Act establishes a Federal rule of law applicable
to a civil action brought for a vaccine-related injury or
death--
(A) this Act shall not affect the application of
the rule of law to such an action; and
(B) any rule of law prescribed by this Act in
conflict with a rule of law of such title XXI shall not
apply to such action.
(2) Exception.--If there is an aspect of a civil action
brought for a vaccine-related injury or death to which a
Federal rule of law under title XXI of the Public Health
Service Act does not apply, then this Act or otherwise
applicable law (as determined under this Act) will apply to
such aspect of such action.
(b) Smallpox Vaccine Injury.--
(1) In general.--To the extent that part C of title II of
the Public Health Service Act establishes a Federal rule of law
applicable to a civil action brought for a smallpox vaccine-
related injury or death--
(A) this Act shall not affect the application of
the rule of law to such an action; and
(B) any rule of law prescribed by this Act in
conflict with a rule of law of such part C shall not
apply to such action.
(2) Exception.--If there is an aspect of a civil action
brought for a smallpox vaccine-related injury or death to which
a Federal rule of law under part C of title II of the Public
Health Service Act does not apply, then this Act or otherwise
applicable law (as determined under this Act) will apply to
such aspect of such action.
(c) Other Federal Law.--Except as provided in this section, nothing
in this Act shall be deemed to affect any defense available to a
defendant in a health care lawsuit or action under any other provision
of Federal law.
SEC. 9. STATE FLEXIBILITY AND PROTECTION OF STATES RIGHTS.
(a) Health Care Lawsuits.--The provisions governing health care
lawsuits set forth in this Act shall preempt, subject to subsections
(b) and (c), State law to the extent that State law prevents the
application of any provisions of law established by or under this Act.
The provisions governing health care lawsuits set forth in this Act
supersede chapter 171 of title 28, United States Code, to the extent
that such chapter--
(1) provides for a greater amount of damages or contingent
fees, a longer period in which a health care lawsuit may be
commenced, or a reduced applicability or scope of periodic
payment of future damages, than provided in this Act; or
(2) prohibits the introduction of evidence regarding
collateral source benefits.
(b) Preemption of Certain State Laws.--No provision of this Act
shall be construed to preempt any State law (whether effective before,
on, or after the date of the enactment of this Act) that specifies a
particular monetary amount of compensatory or punitive damages (or the
total amount of damages) that may be awarded in a health care lawsuit,
regardless of whether such monetary amount is greater or lesser than is
provided for under this Act, notwithstanding section 3(b).
(c) Protection of State's Rights and Other Laws.--
(1) In general.--Any issue that is not governed by a
provision of law established by or under this Act (including
the State standards of negligence) shall be governed by
otherwise applicable Federal or State law.
(2) Rule of construction.--Nothing in this Act shall be
construed to--
(A) preempt or supersede any Federal or State law
that imposes greater procedural or substantive
protections for a health care provider, health care
organization, or the manufacturer, distributor,
supplier, marketer, promoter, or seller of a medical
product from liability, loss, or damages than those
provided by this Act;
(B) notwithstanding any other provision of this
section, preempt or supercede any State law that
provides for a specific monetary limit on total damages
(including compensatory damages) that may be awarded in
a health care lawsuit regardless of whether such
monetary limit is greater or lesser than is provided
for under this Act;
(C) create a cause of action that is not otherwise
available under Federal or State law; or
(D) affect the scope of preemption of any other
Federal law.
SEC. 10. DEFINITIONS.
In this Act:
(1) Alternative dispute resolution system; adr.--The term
``alternative dispute resolution system'' or ``ADR'' means a
system that provides for the resolution of health care lawsuits
in a manner other than through a civil action brought in a
State or Federal court.
(2) Claimant.--The term ``claimant'' means any person who
brings a health care lawsuit, including a person who asserts or
claims a right to legal or equitable contribution, indemnity or
subrogation, arising out of a health care liability claim or
action, and any person on whose behalf such a claim is asserted
or such an action is brought, whether deceased, incompetent, or
a minor.
(3) Collateral source benefits.--The term ``collateral
source benefits'' means any amount paid or reasonably likely to
be paid in the future to or on behalf of the claimant, or any
service, product or other benefit provided or reasonably likely
to be provided in the future to or on behalf of the claimant,
as a result of the injury or wrongful death, pursuant to--
(A) any State or Federal health, sickness, income-
disability, accident, or workers' compensation law;
(B) any health, sickness, income-disability, or
accident insurance that provides health benefits or
income-disability coverage;
(C) any contract or agreement of any group,
organization, partnership, or corporation to provide,
pay for, or reimburse the cost of medical, hospital,
dental, or income disability benefits; and
(D) any other publicly or privately funded program.
(4) Compensatory damages.--The term ``compensatory
damages'' means objectively verifiable monetary losses incurred
as a result of the provision of, use of, or payment for (or
failure to provide, use, or pay for) health care services or
medical products, such as past and future medical expenses,
loss of past and future earnings, cost of obtaining domestic
services, loss of employment, and loss of business or
employment opportunities, damages for physical and emotional
pain, suffering, inconvenience, physical impairment, mental
anguish, disfigurement, loss of enjoyment of life, loss of
society and companionship, loss of consortium (other than loss
of domestic service), hedonic damages, injury to reputation,
and all other nonpecuniary losses of any kind or nature. Such
term includes economic damages and noneconomic damages, as such terms
are defined in this section.
(5) Contingent fee.--The term ``contingent fee'' includes
all compensation to any person or persons which is payable only
if a recovery is effected on behalf of one or more claimants.
(6) Economic damages.--The term ``economic damages'' means
objectively verifiable monetary losses incurred as a result of
the provision of, use of, or payment for (or failure to
provide, use, or pay for) health care services or medical
products, such as past and future medical expenses, loss of
past and future earnings, cost of obtaining domestic services,
loss of employment, and loss of business or employment
opportunities.
(7) Emergency medical condition.--The term ``emergency
medical condition'' means a medical condition manifesting
itself by acute symptoms of sufficient severity (including
severe pain) such that the absence of immediate medical
attention could reasonably be expected to result in placing the
health of the individual (or, with respect to a pregnant woman,
the health of the woman or her unborn child) in serious
jeopardy, serious impairment to bodily functions, or serious
dysfunction of any bodily organ or part.
(8) Emergency or trauma care services.--The term
``emergency or trauma care services'' means health care goods
and services that are furnished to an individual with an
emergency medical condition, including the response to the
emergency medical condition, screening, stabilization and
treatment of the emergency medical condition.
(9) Health care goods or services.--The term ``health care
goods or services'' means--
(A) any obstetrical or gynecological goods or
services provided by a health care organization,
provider, or by any individual working under the
supervision of a health care provider, that relates to
the diagnosis, prevention, care, or treatment of any
obstetrical or gynecological-related human disease or
impairment, or the assessment of the health of human
beings; and
(B) any goods or services provided by a health care
organization, provider, or by any individual working
under the supervision of a health care provider, that
are involved in the provision of emergency or trauma
care services.
(10) Health care lawsuit.--The term ``health care lawsuit''
means any health care liability claim concerning the provision
of obstetrical or gynecological goods or services affecting
interstate commerce, or emergency or trauma care goods or
services affecting interstate commerce, or any health care
liability action concerning the provision of (or the failure to
provide) obstetrical or gynecological goods or services
affecting interstate commerce, or emergency or trauma care
goods or services affecting interstate commerce, brought in a
State or Federal court or pursuant to an alternative dispute
resolution system, against a physician or other health care
provider who delivers obstetrical or gynecological services, or
emergency or trauma care services, a health care organization
(only with respect to obstetrical or gynecological services or
emergency or trauma care services), or the manufacturer,
distributor, supplier, marketer, promoter, or seller of a
medical product (only with respect to a medical product used in
connection with obstetrical or gynecological services or
emergency or trauma care services), regardless of the theory of
liability on which the claim is based, or the number of
claimants, plaintiffs, defendants, or other parties, or the
number of claims or causes of action, in which the claimant
alleges a health care liability claim.
(11) Health care liability action.--The term ``health care
liability action'' means a civil action brought in a State or
Federal Court or pursuant to an alternative dispute resolution
system, against a physician or other health care provider who
provides obstetrical or gynecological services or emergency or
trauma care services, a health care organization (only with
respect to obstetrical or gynecological services or emergency
or trauma care services), or the manufacturer, distributor,
supplier, marketer, promoter, or seller of a medical product
(only with respect to a medical product used in connection with
obstetrical or gynecological services or emergency or trauma
care services), regardless of the theory of liability on which
the claim is based, or the number of plaintiffs, defendants, or
other parties, or the number of causes of action, in which the
claimant alleges a health care liability claim.
(12) Health care liability claim.--The term ``health care
liability claim'' means a demand by any person, whether or not
pursuant to ADR, against a physician or other health care
provider who delivers obstetrical or gynecological services
or emergency or trauma care services, a health care organization (only
with respect to obstetrical or gynecological services or emergency or
trauma care services), or the manufacturer, distributor, supplier,
marketer, promoter, or seller of a medical product (only with respect
to a medical product used in connection with obstetrical or
gynecological services or emergency or trauma care services), including
third-party claims, cross-claims, counter-claims, or contribution
claims, which are based upon the provision of, use of, or payment for
(or the failure to provide, use, or pay for) obstetrical or
gynecological services or emergency or trauma care services, regardless
of the theory of liability on which the claim is based, or the number
of plaintiffs, defendants, or other parties, or the number of causes of
action.
(13) Health care organization.--The term ``health care
organization'' means any person or entity which is obligated to
provide or pay for health benefits under any health plan,
including any person or entity acting under a contract or
arrangement with a health care organization to provide or
administer any health benefit.
(14) Health care provider.--The term ``health care
provider'' means any person or entity required by State or
Federal laws or regulations to be licensed, registered, or
certified to provide health care services, and being either so
licensed, registered, or certified, or exempted from such
requirement by other statute or regulation.
(15) Malicious intent to injure.--The term ``malicious
intent to injure'' means intentionally causing or attempting to
cause physical injury other than providing health care goods or
services.
(16) Medical product.--The term ``medical product'' means a
drug or device intended for humans. The terms ``drug'' and
``device'' have the meanings given such terms in sections
201(g)(1) and 201(h) of the Federal Food, Drug and Cosmetic Act
(21 U.S.C. 321), respectively, including any component or raw
material used therein, but excluding health care services.
(17) Noneconomic damages.--The term ``noneconomic damages''
means damages for physical and emotional pain, suffering,
inconvenience, physical impairment, mental anguish,
disfigurement, loss of enjoyment of life, loss of society and
companionship, loss of consortium (other than loss of domestic
service), hedonic damages, injury to reputation, and all other
nonpecuniary losses of any kind or nature.
(18) Obstetrical or gynecological services.--The term
``obstetrical or gynecological services'' means services for
pre-natal care or labor and delivery, including the immediate
postpartum period (as determined in accordance with the
definition of postpartum used for purposes of title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.)).
(19) Punitive damages.--The term ``punitive damages'' means
damages awarded, for the purpose of punishment or deterrence,
and not solely for compensatory purposes, against a physician
or other health care provider who delivers obstetrical or
gynecological services or emergency or trauma care services, or
against a manufacturer, distributor, supplier, marketer,
promoter, or seller of a medical product (subject to section
6(c)). Punitive damages are neither economic nor noneconomic
damages.
(20) Recovery.--The term ``recovery'' means the net sum
recovered after deducting any disbursements or costs incurred
in connection with prosecution or settlement of the claim,
including all costs paid or advanced by any person. Costs of
health care incurred by the plaintiff and the attorneys' office
overhead costs or charges for legal services are not deductible
disbursements or costs for such purpose.
(21) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the Northern
Mariana Islands, the Trust Territory of the Pacific Islands,
and any other territory or possession of the United States, or
any political subdivision thereof.
SEC. 11. APPLICABILITY; EFFECTIVE DATE.
This Act shall apply to any health care lawsuit brought in a
Federal or State court, or subject to an alternative dispute resolution
system, that is initiated on or after the date of the enactment of this
Act, except that any health care lawsuit arising from an injury
occurring prior to the date of enactment of this Act shall be governed
by the applicable statute of limitations provisions in effect at the
time the injury occurred.
Calendar No. 462
108th CONGRESS
2d Session
S. 2207
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A BILL
To improve women's access to health care services, and the access of
all individuals to emergency and trauma care services, by reducing the
excessive burden the liability system places on the delivery of such
services.
_______________________________________________________________________
March 22, 2004
Read the second time and placed on the calendar