Thursday, August 20, 2009

On health care, Texas took on the lawyers and won; congress chooses campaign funds over reform

Texas Gov. Rick Perry:

"In 2003, I declared the medical liability crisis an emergency item and the Legislature responded by passing sweeping reforms that protected the patient, but also shielded doctors and hospitals from unscrupulous trial lawyers eager to make a quick buck.

We capped noneconomic damages at $250,000 per defendant, or up to $750,000 per incident, while placing no cap on more easily determined economic damages, such as lost wages or costs of medical care due to injury.

We ended the practice of allowing baseless but expensive lawsuits to drag on indefinitely, requiring plaintiffs to provide expert witness reports to support their claims within four months of filing suit or drop the case.

These measures were supported by the people of Texas, who in September 2003 approved a ballot measure, Proposition 12, authorizing all the changes.

Changes were seen immediately, and continue to be felt. All major liability insurers cut their rates upon passage of our reforms, with most of those cuts ranging in the double-digits. More than 10 new insurance carriers entered the Texas market, increasing competition and further lowering costs.

As a result, Texas doctors have seen their insurance rates decline by an average of 27 percent.

The number of doctors applying to practice medicine in Texas has skyrocketed by 57 percent. In 2008, the Texas Medical Board received 4,023 license applications and issued a record 3,621 new ones.

In all, in just the first five years after reforms passed, 14,498 doctors either returned to practice in Texas or began practicing here for the first time.

And our reforms finally brought critical specialties to underserved areas. The number of obstetricians practicing in rural Texas is up by 27 percent, and 12 counties that previously had no obstetricians now have at least one. The statistics show major gains in fields like orthopedic surgery, pediatrics, neurosurgery and emergency medicine."

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