Help Efficient, Accessible, Low-Cost, Timely Healthcare (Health) Act Of
Mr. Speaker, I thank the gentleman from Texas (Mr. Smith) for yielding me the time. With all due respect to the distinguished ranking member, let me say that in response to his comments, this is a special interest bill. That is right. It…
Mr. Speaker, I thank the gentleman from Texas (Mr. Smith) for yielding me the time.
With all due respect to the distinguished ranking member, let me say that in response to his comments, this is a special interest bill. That is right. It is a special interest bill. It is a special interest bill for the American consumer of health care, for our patients. That is where the special interest is; not, Mr. Speaker, the insurance industry, not drug companies or manufacturers of medical devices.
The insurance industry, of course, offers a broad range of products. It could be health insurance. It could be automobile insurance. It could be homeowners insurance. It could be an umbrella policy for general liability. And, yes, of course there is a product line called medical liability insurance.
But let me tell you what is happening to the insurance industry in regard to that piece of their business. In my home State of Georgia, 3 years ago we had 20 companies that offered that line of business. Today we have one. We have gone from 20 to 1, and that is a mutual company.
If these insurance companies were making out like bandits, as the other side of the aisle and the opposition to this commonsense bill are suggesting, then they would not be quitting the business in droves. They would be continuing to stay in the business and raising those premiums and making these tremendous profits.
I do not know, Mr. Speaker, what is happening with the industry of insurance in regard to other product lines. The gentleman may be right on that. But in regard to this line of business, I can tell you they are losing money even when they have good returns on their investments, as did Mag Mutual in Georgia several years ago. In fact, the return on their very conservative investments, they are very restricted by the insurance commissioner in that very conservative portfolio of investments, returned them $7 million; but they still are losing money because of these outrageous claims and the expense of defending so many frivolous lawsuits.
In regard, Mr. Speaker, to the drug companies and the manufacturers of medical devices that the distinguished ranking member mentioned, this bill would only relieve them of punitive damages, that is all, punitive damages, if it is shown that they did deliberately market a drug or a device that they knew was harmful to a patient and they deliberately withheld that information from the FDA. It does not relieve them of liability for being named in a lawsuit. It is only the punitive damages.
If they are guilty of something like that, of withholding information deliberately, we went through this with the tobacco industry in regard to lung cancer, the punitive damages can be in the hundreds of millions and, maybe if it is a big Fortune 500 company, billions of dollars.
So this is a distraction from the real problem. And the real problem, Mr. Speaker, is that we have an unlevel playing field. That is all it is. This bill, H.R. 5, the HEALTH Act of 2005, is not going to take away anybody's right to sue if they have been injured and to seek economic damages and payments for medical care for the rest of their lives.
The gentleman from Texas explained to us that many of these cases in California, a State that since 1979 has had a cap on noneconomic so- called ``pain and suffering'' at $250,000, these cases that he just talked about, $10 million, $20 million, $30 million worth of economic awards, people are not being denied access to that care, Mr. Speaker. This is only to balance the playing field so that we do not have this situation in this country where we are supposed to have the greatest health care in the world, and yet our specialists are dropping out. They are not delivering babies. They are not getting involved in high- risk pregnancies. They are not manning emergency rooms. They are not doing newer surgery.
Because of all the defensive practice of medicine, every specialist practices in two areas: his or her specialty and also the specialty of defensive medicine, and it is driving up the cost of health care and people cannot afford to get health insurance. That is all we are talking about here, Mr. Speaker, of leveling the playing field. It is not taking away anybody's right to sue. It is not denigrating or bashing the legal profession.
Those attorneys who specialize in personal injury, most of them do a great job representing their clients well. My brother is an attorney. My daughter is an attorney. We are not here to bash the legal profession. But we just want to ask them to give us an opportunity to level this playing field to make it fair for everyone. And so this idea that the other side suggests that we are taking away anybody's rights is absolutely not true, Mr. Speaker.
Let me say some of the things that this bill does do besides limiting noneconomic to $250,000. What it does, Mr. Speaker, is something called ``collateral source disclosure.'' Current law did not allow a jury to know that a plaintiff in a malpractice case has health insurance or has a disability policy. So when they are calculating all of these economic losses and loss of wages, it is not known by the jury that maybe that disability policy gives them 80 percent of their earnings or their income for their whole life or that they have health insurance.
The other thing, and I will conclude on this, Mr. Speaker, the other things this bill does is it stops this issue of joint and several liability where, when multiple defendants are named, the person, the doctor who has the deepest pockets, who may have had very little to do, if anything to do, maybe just walked down the corridor on a Saturday and said hello to the patient, but they happened to have the most insurance and the deepest pockets so they pay all of the claims.
Mr. Speaker, the last two commentators in opposition to this bill talked about the biggest problem with this bill being the lack of consumer protection.
I am going to tell my colleagues that the biggest consumer protection in this bill is limitation of contingency lawyer fees. When a person is injured severely, they ought to walk out of that courtroom at the end of the day with the preponderance, the largest portion, of that judgment in their pocket and not in the pocket of the lawyers. And that is consumer protection at its very best.
Mr. Speaker, I thank the gentleman for yielding me this time.
Mr. Speaker, I would like to take my time, I hope sufficient time, to refute some of these statements that have been made in opposition. I want to start with the gentlewoman from Colorado who just spoke. It is absolutely wrong about the issue of Federal law superseding State law in cases where the State has already addressed the issue.
Let us say the issue of caps, my State of Georgia passed a law this year, and the caps there are $350,000. That would be applicable State law would apply. It is only when States have not addressed the issue when the Federal law would speak.
I want to also address something the gentlewoman said in regard to this bill being nothing. I have heard this not just from her, but from number of other speakers on the other side in opposition, talking about that this is nothing but a protection for the insurance industry, and it is another bail-out of protection for the pharmaceutical industry, and they are relieved of all liability, which is absolutely untrue, Mr. Speaker.
In fact, last night when we were talking about the rule, the gentleman from Arkansas, a registered pharmacist, opposed the rule and the bill basically for the same reason. I would like to remind him. I hope the gentleman is listening to the discussion this afternoon. But this would protect a pharmacist who prescribes a drug, a legally FDA- approved drug, that the pharmacist had no idea that there might be a problem or an adverse reaction. This is what this bill does. That would protect the pharmacist from punitive damages in a case like that, where there was no deliberate intent to harm the patient.
So it is very important that all of our colleagues understand the truth
here. The gentleman from Illinois kept talking about the Vioxx case, and the marathon runner. Well, if Vioxx and the company that makes that drug is guilty of withholding pertinent information that they had in clinical trials, and they knew that it was a harmful drug that they put out there on the market and exposed patients to that drug, then they are going to pay one heck of a price for that, yes, in punitive damages.
So they are not relieved from that under this bill. It is only when they did everything right and they were approved by the FDA that they would have any relief from punitive damages.
There are plenty of great athletes, Mr. Speaker. I remember an All- American basketball player from St. Joseph's University 10 or 15 years ago that dropped dead on the basketball court. He was not taking Vioxx. But we will see how that case turns out.
The issue was brought up, Mr. Speaker, about young children who are injured, and they do not have a job or profession, so they need this pain and suffering compensation that can be infinity, hundreds of millions of dollars, rather than a cap at 250-, when the truth is the triers of fact, Mr. Speaker, the jury, can determine the life span, the expected life span of that child and what their earnings would be over the course of that lifetime. The same thing in regard to a stay-at-home mom who was a professional maybe, an attorney possibly, before she decided to become a mother and a homemaker. Those earnings would be calculated as well.
Finally, Mr. Speaker, a little while earlier a speaker in opposition, the gentleman from New York, he made this statement: It comes down to the issue of who we are fighting for. I am really not sure who the gentleman in the opposition is fighting for. I suspect that I know who they are fighting for. Does ATLA sound familiar to you, my colleagues?
But I am going to tell you who we are fighting for. We are fighting for the patient. We are fighting for their right to have the ability to access needed specialists in health care, and they are not going to be there if we do not level this playing field.
Mr. Speaker, I thank the gentleman for yielding me time.
Mr. Speaker, I think it is important that we make sure that all our colleagues are clear on some of the issues that have been discussed here today. I know there has been some hyperbole maybe on both sides of the issue, and I want to be very clear.
This bill protects our patients, first and foremost, and gives them an opportunity to have access to affordable health care and to the specialist that they need and when they need them. It also helps our physicians, our doctors be able to stay in practice when they have an opportunity to have a stable medical malpractice insurance premium that they have to pay.
Yes, there is no question, Mr. Speaker, that section 7 in regard to punitive damages, that is applicable to our doctors as well as to companies that make medical equipment. It also is applicable to drug companies that provide us with life-saving drugs if they have done so in a fashion that is not negligent and not deliberately intended to harm a patient.
Here is an example, Mr. Speaker: things like time released infusion, chemotherapy, treating cancer patients, insulin pumps for diabetics, titanium hip replacements, artificial heart valves. If the makers of these life-saving devices were subject to punitive damages every time something through no fault of their own went wrong, we would be in the situation that we were in a year and a half ago in regard to the flu vaccine. Nobody wants to get involved in that business for the fear of a lawsuit. And with the government setting prices on flu vaccines, the profit margin to begin with was very limited.
So this section 7 is a very important provision in this bill, Mr. Speaker. So again, I want my colleagues on both sides of the aisle to understand that this is not a bad provision. This is a good provision.
Mr. Speaker, also one of the speakers in opposition, well, actually several of the speakers in opposition, said that this bill has been brought to us, we have had no hearings, we have had no opportunity, we have had no voice. It is not true, Mr. Speaker.
This is the fourth time in 3 years that this exact same bill, H.R. 5, has been dealt with on the floor of this House. It is the exact same bill.
I joined this body in 2003. We dealt with it in 2003. We dealt with it in 2004, and here we are with the exact same bill. Section 7 was in the bill, the section in regard to punitive damages. Nothing has changed. In fact, in the Committee on Energy and Commerce this February, a hearing was held on medical liability and some 15 witnesses were at that hearing, Mr. Speaker. So it is untrue to suggest that we have not had hearings and they have not had an opportunity. They know this bill.
It is a good bill. We have passed it three times. We are going to, in a few minutes, pass it for a fourth time; and, hopefully, the other body will do the same thing so we can get this to the President for his signature and level this playing field once and for all.