Trade Group Criticizes N.J. Med Mal Reform Bill
NU Online News Service, March 31, 3:35 p.m. EST? A medical malpractice reform bill approved by the New Jersey Senate this week still lacks a crucial component that the medical community and insurers want in such legislation, according to an insurers' trade association.[@@]
Richard Stokes, a representative for the Des Plaines, Ill.-based Property Casualty Insurers Association, said the legislation, whose first version was introduced and passed in the Assembly, is considered "somewhat of a comprehensive piece of legislation on medical malpractice insurance reform."
However, Mr. Stokes criticized the bill for failing to include a key element that the medical community and carriers generally support: caps on pain-and-suffering litigation awards.
Instead of caps, the legislation provides a three-year subsidy fund amounting to some $78 million to help physicians and hospitals pay for insurance coverage, Mr. Stokes observed.
He said that the fund is intended to help certain doctors meet their premium payments.
But, Mr. Stokes said, "the legislation really doesn't deal with the long-term aspect: how to get a better handle on costs and make it more affordable for the medical community. We are concerned whether the fund will help the right doctors?the doctors that really need the critical support to remain in business in New Jersey."
There are, however, certain helpful provisions in the bill that the insurance companies would approve of, according to Mr. Stokes. For example, legislation sets stricter guidelines for filing malpractice lawsuits and gives judges more leeway to control monetary awards.
"Certainly, that is better. There are elements in the legislation that are probably very helpful," he said. "But it has to go back to the caps issue. In our estimation, caps, in following the California model, would be a better model to look at."
The bill, which was passed by a vote of 22-15 in the Democrat-controlled Senate, now goes back to the Assembly, also controlled by Democrats. "It has to go back to the Assembly because the Senate made certain changes to the Assembly bill," Mr. Stokes said.
He said he expects final action in May, when he believes the Assembly will pass the revised measure and that Democrat Gov. James McGreevey will sign it.
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