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June 2006
Volume 70
Number 6

Washington Report

Senate ‘Health Week’ Brings Focus to Medical Issues

Ronald Szabat, J.D., L.L.M., Director
Governmental and Legal Affairs



s will be detailed in the August 2006 “Governmental Affairs” edition of this NEWSLETTER, May 1 brought hundreds of anesthesiologists to Washington, D.C., for ASA’s highly successful annual Legislative Conference. At about the same time, the United States Senate also began “Health Week” as a way to spotlight major issues of importance to America’s patients and physicians.

First up was a medical litigation reform bill, S.22, the “Medical Care Access Protection Act of 2006,” sponsored by Sen. John Ensign (R-NV), that would improve patient access to health care services by reducing the excessive burden that liability premiums place on physicians. The bill is the first major Congressional measure to advance the Texas stacked cap model for noneconomic damages up to a $750,000 total, with the stipulation that physicians and other health care providers would see any judgments against them for such injuries limited to no more than $250,000 for each claimant.

The bill also included a new expert witness rule, whereby an expert in one medical specialty or subspecialty could not testify against a physician in another medical specialty or subspecialty unless the expert demonstrated substantial familiarity between the two and showed that the standards of care were similar.

Despite the higher noneconomic damages cap in this measure, the Senate still failed to muster the 60 votes needed to allow it to proceed to a final vote, failing to invoke cloture (cut off debate so that the bill could proceed to amendments and a vote on final passage) by a vote of 48-42. Of note, several of the newer Republican senators did vote “yes,” thus increasing overall Senate support for medical litigation reform, as compared to prior Congresses.


Mississippi Contingent at 2006 Legislative Conference

Left to right: Kirk L. Kinard, D.O., Candace E. Keller, M.D., M.P.H., Congressman Chip Pickering (R-MS), Timothy J. Beacham, M.D., Stephanie J. Dyer, M.D., Claude D. Brunson, M.D., Dale F. Sutherland, M.D. Photo by Claude D. Brunson, M.D.



Following on the heels of the unsuccessful vote on S. 22, the Senate also voted on S. 23, the “Healthy Mothers and Healthy Babies Access to Care Act,” sponsored by Senate Budget Committee Chairman Judd Gregg (R-NH) and Senate Conference Chairman Rick Santorum (R-PA). This bill was remarkably similar in structure to S. 22 except that it sought, as its name implied, to limit noneconomic damages to physicians and other health care providers involved in services relating to labor, delivery and postpartum care.

As a “specialty-specific” bill, S. 23 highlighted the loss of obstetrical care nationally and the ill effects of runaway juries on this segment of physician medical care. As with S. 22, for its part, ASA supported moving the bill to cloture even as it quietly continued to work with Sen. Gregg to ensure that all anesthesia services incidental to labor, delivery and postpartum care would fall under the protective umbrella of the bill. Unfortunately this bill also failed to garner the 60 Senate votes needed to move to final passage, again failing largely along party lines by a vote of 49-44.

Following on the heels of the votes on S. 22 and S. 23, the Senate turned to S. 1955, the “Health Insurance Marketplace Modernization and Affordability Act of 2006,” sponsored by Senate Committee on Health, Education, Labor and Pensions [HELP] Chairman Michael B. Enzi (R-WY). Working from a revised Chairman’s Substitute to an Amendment in the Nature of a Substitute to S. 1955, as reported from the HELP Committee on March 15, 2006, the Senate debate was lengthy and heated. Ultimately, a key vote to invoke cloture failed on a 53-43 vote.

ASA took no official position on S. 1955 but effectively lobbied at the committee level to ensure that no state scope-of-practice laws would be changed by its provisions. In short, the bill would amend the Employee Retirement Income Security Act of 1974 (ERISA) and Public Health Service Act to expand health care access through creation of small business health plans by modernizing state health insurance laws and practices. The bill would accomplish this by amending ERISA to provide for the establishment of special group health plans that could be sponsored by trade, professional, chamber of commerce or similar business associations that meet certain certification requirements. Under its terms, the bill would require the U.S. Secretary of Labor to consult with states regarding any exercise of authority over such plans.

The measure also would amend the Public Health Service Act to advance the development and use of new Model Small Group Rating Rules drawn from the National Association of Insurance Commissioners (NAIC) Adopted Small Employer Health Insurance Availability Model Act of 1993. It is noteworthy that NAIC has a more recent model act on this subject that was not used.

In addition the bill would require that the secretary, in consultation with NAIC, establish the Health Insurance Consensus Standards Board to develop recommendations that would harmonize state health insurance laws relating to form and rate filings, market conduct review standards, and prompt payment of claims and internal review.

As expected, S. 1955 has had mixed support among a wide range of national trade and professional associations. The American Medical Association, NAIC and the states’ attorneys general, for example, all voiced specific and serious concerns on a number of the bill’s provisions. ASA has continued to work with the committee and bill sponsors, discussing matters of interest, and has commended the authors of this legislation for their efforts to expand the availability of health insurance.


New Hampshire Contingent at 2006 Legislative Conference

Left to right: Steven K. Andeweg M.D., Steve J. Hattamer, M.D., Alex Heinecke (Dartmouth University student), Paul Sansone, M.D., Paul DelGiudice, M.D., Congressman Jeb Bradley (R-NH), Sean E. Hunt, M.D., Palmer Jones (New Hampshire Medical Society Executive Director), Timothy J. Quill, M.D. Photo by Timothy J. Quill, M.D.




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