House panel OKs malpractice bill

Rep. Lee Terry (R-Neb.) sided with Democrats on the preemption issue.

“This preempts probably every (law) but California’s and Texas’ medical liability laws, so it is very clear that it violates sates’ rights,” Terry said.

According to the American Association for Justice, which represents trial attorneys, four states have constitutional bans on capping jury awards. Another six state supreme courts have struck down laws that imposed a cap on damages.

Doctors strongly support the proposal. The American Medical Association has said capping malpractice awards will reduce overall healthcare spending by cutting down on unnecessary procedures that doctors perform just to avoid being sued. The Congressional Budget Office said the Energy and Commerce bill would save the federal government roughly $54 million over 10 years.

In addition to offering anti-preemption amendments on damages, Democrats tried unsuccessfully to strip from the bill a section that would preempt tort suits involving drugs and medical devices approved by the Food and Drug Administration.

The U.S. Supreme Court has ruled that injured consumers can sue drug companies and some device makers. The malpractice bill would impose limits on those suits, shielding manufacturers from some suits as long as their products complied with FDA regulations.

Rep. Henry Waxman (D-Calif.) argued that product liability is a separate issue and said it was “irresponsible and dangerous to squeak these very different cases into the scope of this bill.”