Legal Reform

Medical Liability Reform

Issue
Excessive litigation and high medical malpractice insurance rates have become major drivers in the increase in health insurance premiums faced by engineering firms and other businesses. According to the American Tort Reform Association, medical malpractice tort costs totaled $28.7 billion in 2004. The financial impact of this problem is not limited to medical providers — health care consumers and patients pay higher insurance premiums and other costs because of runaway lawsuits.

During the 109th Congress, there was an effort to address this situation by seeking to place modest limits on damage awards. The House passed H.R. 534, the HEALTH (Help Efficient, Accessible, Low-Cost, Timely Healthcare) Act. The bill sought to put limits on some awards against health care providers (such as non-economic and punitive damage awards), while allowing for full recovery of economic damages (such as medical bills and lost wages). The legislation did not receive final approval, and the outlook for medical liability reform in the new Congress is unclear.

ACEC Position
ACEC strongly supports passage of legislation such as the HEALTH Act.