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[Congressional Record Volume 141, Number 70 (Monday, May 1, 1995)]
[Senate]
[Pages S5859-S5860]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

            PRODUCT LIABILITY AND MEDICAL MALPRACTICE REFORM

  Mr. GRAMS. Mr. President, I think most Senators would agree that 
health care reform was the most important piece of legislation we 
debated during the 103d Congress.
  Throughout the health care debate, we heard from people here in 
Washington and across the Nation, and we learned what they valued most 
about our Nation's health care system. We 
[[Page S5860]] also heard their suggestions as to how the current 
system should be changed.
  Fortunately, we also learned that the majority of Americans did not 
agree with the President's plan to turn the entire health care system 
over to the Federal Government.
  But, while most Americans adamantly rejected his radical approach to 
health care reform, we also found tremendous support for reasonable and 
sensible reforms which will immediately improve our health care system.
  In particular, we learned that the American people overwhelmingly 
believe we need to dramatically reshape our Nation's medical 
malpractice system.
  Recent polls continue to show strong support for liability reform.
  Eighty-three percent of Americans believe that the present liability 
system has problems and should be improved.
  Eighty-nine percent believe that too many lawsuits are being filed in 
America today; and
  Sixty-seven percent of American voters agree with the statement that 
``I am afraid that one day I, or someone in my family, will be the 
victim of a lawsuit.''
  Some of my colleagues might ask, why we are discussing medical 
malpractice reform during the product liability debate? Simple: many of 
the same problems facing American manufacturers also affect our doctors 
and health care providers.
  During the last two decades, there has been an explosion of 
litigation that has saddled the health care industry with substantial 
costs wholly unrelated to providing medical care and services.
  While I stand behind the right of every individual to right a wrong 
through the judicial system, this litigation bonanza does nothing to 
improve patient care or improve service delivery. It simply encourages 
frivolous lawsuits by creating an environment which is weighted in 
favor of the plaintiff's bar and against the world's best health care 
system.
  Second, this ever-increasing tide of litigation has forced a large 
number of physicians to practice defensive medicine to protect 
themselves from lawsuits. This practice passes along greater costs to 
patients and insurers.
  Lewin-VHI conducted a study in 1993, and discovered that the U.S. 
health care delivery system could save up to $76.2 billion over 5 years 
by eliminating defensive medicine practices.
  Taxpayers also feel the pain of defensive medicine in their 
checkbooks since the physicians who treat America's poor and elderly 
are forced to practice defensive medicine which increases the costs of 
the Medicare and Medicaid Programs.
  Defensive medicine is a drain on our Federal budget, and one we 
cannot afford.
  In 1991, medical liability premiums for hospitals and physicians 
totaled $9.2 billion.
  The current system has had a chilling effect on the ability of 
patients to access their doctors--especially those who live in rural 
areas.
  For example, 70 percent of all ob-gyns will be sued during their 
careers. Many have decided to no longer offer obstetric services to 
their patients for fear of lawsuits. And obstetricians continue to pay 
the highest premiums of all health care providers.
  From the standpoint of the victims, even when a lawsuit is justified 
and reasonable, they are often forced to wait up to 5 years between the 
time their injury occurred and the time they are compensated, under our 
current system.
  More often than not, attorneys will only litigate cases with high 
award potentials, which tends to discourage attorneys from settling the 
cases early.
  Finally, and perhaps most troubling, the medical malpractice system 
has placed a wedge between doctors and their patients; it undermines 
the mutual trust which is essential to the doctor-patient relationship.
  Last year, after the relevant House committees failed to address 
medical malpractice reform, I introduced legislation very similar to 
the amendment offered today by Senators McConnell, Kassebaum, and 
Lieberman.
  With this amendment, the Senate has the opportunity to do what the 
American people want--reform the system.
  This amendment would do that by:
  Ensuring full recovery for economic and noneconomic damages including 
lost wages, as well as compensation for pain and suffering;
  Providing alternative dispute resolution;
  Establishing the use of the collateral source rule;
  Abolishing joint liability; and
  Requiring periodic payment of future damage awards.
  These reforms are the first steps toward addressing the failure of 
our medical malpractice system.
  I came to the floor today to reaffirm my support for sensible 
improvements to our badly broken medical malpractice system. As many of 
my colleagues have noted--Democrats and Republicans alike--our current 
system is costly, slow, inequitable, and unpredictable. Our system has 
failed hospitals, doctors, and ultimately, it has failed its patients. 
The American people deserve better.
  While this amendment has my full support and I recognize the many 
hours of hard work my colleagues spent on this legislation, I believe 
we should go further.
  I strongly encourage the Senate to include the $250,000 cap on 
noneconomic damages.
  In addition, we should extend protection to the manufacturers of 
medical devices by eliminating punitive damage awards if the device has 
received FDA approval.
  According to Medical Alley, a coalition of Minnesota's entire health 
care industry, ``the current liability system has a negative effect on 
health care product innovation.''
  They cite the fact that innovative products are not being developed, 
which has reduced our ability to compete in worldwide markets.
  I urge my colleagues to ensure that significant changes are 
implemented. However, if the Congress and the President fail to secure 
fundamental reforms to our liability system, I will move forward and 
introduce legislation which will address the concerns of so many 
American doctors, consumers, and patients alike.
  Mr. President, our medical malpractice system is in critical 
condition, but it is not too late to save it. The American people are 
demanding reform and the Senate must deliver.
  We need a system that meets the needs of all Americans, not just the 
plaintiffs' bar. I believe this amendment is the prescription we have 
been looking for to cure this problem.
  Thank you, and I yield the floor.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. GORTON. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________
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