Will There Be A Major Overhaul of Medical Malpractice Liability? There May Be Sweeping Change: What You Need to Know


First thing this month, President Barack Obama’s debt commission issued a big report regarding the huge amount of federal government debt — which no one can contest is astonishingly, amazing huge — and as part of its recommendations, there’s a section dealing with medical malpractice liability. The National Commission on Fiscal Responsibility and Reform reports that $2 billion could be slashed from the federal budget each year, with some changes to the current malpractice liability process.

The commission, concerned with finding ways to cut that federal debt, are pointing at this ability of injured plaintiffs to sue those medical professionals that are responsible as being the cause of higher health care costs in the country today. How? Medical providers have to pay higher insurance premiums (malpractice coverage). Health care providers also charge for most things that they do (tests, etc.) to try and protect themselves from being sued. The report calls this “…indirect costs in the form of over-utilization of diagnostic and related services (sometimes referred to as ‘defensive medicine’).” ”

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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