NU Online News Service, Jan. 25, 3:25 p.m.EST

WASHINGTON—Legislation establishing federal limits onmedical liability claims has been introduced in the House.

H.R. 5, "The HEALTH Act," was introduced late Monday by Rep.Lamar Adams, R-Texas, chairman of the House JudiciaryCommittee.

Co-sponsors include Rep. Phil Gingrey, R-Ga., and Rep. DavidScott, D-Ga.

According to a statement from Rep. Adams' office, thelegislation is modeled after California's 30-year-old medicalliability law.

It imposes a $250,000 cap on subjective noneconomic damages;collateral source rule reform allowing evidence of outside paymentsto be made in court; a ban on subrogation by collateral sources; afee schedule for attorney contingency fees; and imposes periodicpayments of future damages.

The legislation is tied to the House Republicans' campaign topropose alternatives to the current health care reform system.

It followed a 273-175 vote Thursday on H.R. 9, a resolutioncharging House committee chairmen with the responsibility to passlegislation that would "replace ObamaCare with meaningful reform tolower costs, expand access to affordable coverage and protect thedoctor-patient relationship."

The bill also follows a recent House Judiciary Committee hearing onmedical liability reform.

Lawrence Smarr, president of the Physician Insurers Associationof America, a national trade association representing health careprovider-owned and/or -operated medical professional liabilityinsurance companies, issued a statement lauding the measure andurging its quick passage.

"The reformation of our medical liability system is critical forboth patients and health care providers," Mr. Smarr said.

He added, "Not only will these reforms restore fairness andequity to our medical liability system for patients and health careproviders alike, they will also result in notable savings forAmericans."

But Gibson Vance, president of the American Association ofJustice, which represents trial lawyers, rejected the bill asdraconian.

"This bill will impose severe, one-size-fits-all caps on damagesthat injured patients can seek—not just when injured by medicalnegligence but also by defective drugs, medical devices, or abusesuffered in nursing homes," he said.

Mr. Vance said that it even extends this cap to health careproviders that intentionally harm or kill patients, as well asinsurance companies that refuse to pay just claims for medicalbills.

"The bill is beyond extreme," he said. "Its authors should focuson real measures that will improve patient safety, not providewelfare to drug and insurance companies that stand to gain the mostfrom this proposal," Mr. Vance said.

Story corrected and headline edited to reflect Rep. DavidScott as a Democrat, not a Republican.