NU Online News Service, Sept. 17, 3:39 p.m.EDT

WASHINGTON–The Senate Finance Committee may addprovisions capping the cost of medical malpractice awards to healthcare reform legislation when it acts on the measure next week.

The stage was set for such action through inclusion of aplaceholder provision dealing with medical malpractice in"America's Healthy Future Act," the legislation introducedyesterday by Sen. Max Baucus, D-Mont., chairman of the Senatepanel.

But, the chief executive officer of a medical malpracticeinsurer in New York cautioned that federal legislation is not thewhole answer to reducing the cost of health care because doctorspractice defensive medicine.

Anthony J. Bonomo, CEO of Physicians' Reciprocal Insurers,Roslyn, N.Y., New York's second largest medical malpracticeinsurer, cautioned that federal medical malpractice legislation,such as a provision to cap pain and suffering awards, will not bethe total answer to doctors' practicing defensive medicine.

"Caps might be a component of reforms, but they are not thetotal answer," he said.

"Remember that caps only affect cases that are tried toconclusion," Mr. Bonomo said. "The majority of cases are settledbefore even going to court, so a cap would not have any definableimpact."

At the same time, he said, one positive of a cap is that they"would help make pain and suffering awards less arbitrary."

The provision in the bill introduced by Sen. Baucus would"express the Sense of the Senate" that health care reform presentsan opportunity to address issues related to medical malpractice andmedical liability insurance.

That such a provision could be inserted in health care deliveryreform legislation was anticipated by the American Association forJustice, formerly the Association of Trial Lawyers of America,which, according to their third-quarter lobbying report, shiftedmajor resources to oppose federal medical malpracticelegislation.

And, in advance of President Barack Obama's speech to Congress10 days ago, the AAJ mounted a public relations campaign to quote"dispel the myth" that the fear of malpractice lawsuits accountsfor astronomical health care costs.

Mr. Bonomo argues that federal legislation is not the totalanswer.

He said the "thrust of medical malpractice reforms should be tomake sure anyone injured can be compensated fairly, and at the sametime ensure that doctors are not overpaying."

He said the industry's lobbying focus needs to be at the statelevel, and it needs to go beyond pain and suffering.

"We need to look at it from a holistic point of view becausethere are other changes that come before pain and suffering, whichcan have a greater impact in stabilizing the system and reducingcosts," Mr. Bonomo said.