A Washington Times editorial, “Tort Reform Savings,” wonders why Congress or the White House would prefer taxes to finance expensive health care legislation instead of saving money through tort reform. Enact tort reform, spare the consumer taxes.
On Oct. 9, the Congressional Budget Office estimated that lawsuit reforms could save the government about $54 billion in health care costs over 10 years. Frankly, we have seen savings estimates nearly four times as high, but even $54 billion is nothing to sneeze at. According to CBO analysis, if Congress instituted caps on noneconomic damages (“pain and suffering” awards and the like), it would be able to eliminate a proposed new tax on medical devices that threatens to put some small manufacturers of health products out of business. At $38.6 billion, that proposed new device tax could be blocked, and Congress still would have more than $15 billion left over.
On top of that, Congress could avoid two-thirds of a proposed new tax on manufacturers and importers of branded drugs, which is slated to bring in $22 billion. Of course, for consumers who really need those medicines, that tax is no bargain. It clearly would be added to the prices consumers pay or to the price of the insurance that covers them.
And more from the Manhattan Institute:
On Tuesday, October 13, 2009 the Manhattan Institute’s Center for Legal Policy, released Trial Lawyers Inc. Update: Healthcare. This report examines the detrimental effect health related litigation has on healthcare costs and defensive medicine practices.
Listen to Paul Howard, director of the Center for Medical Progress, interview Jim Copland, author of TLI: Healthcare.
Here’s what is stopping tort reform Jim Copland, Washington Examiner, 10-14-09
IN THE PRESS
Put this one on your favorites Waterbury Republican American, 10-14-09
Malpractice from Manhattan David Freddoso, Washington Examiner, 10-14-09
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