Washington, DC – The American Health Care Association (ACHA) and National Center for Assisted Living (NCAL) today thanked the Bush Administration for proposing significant legal reforms – including caps on non-economic and punitive damages in health care lawsuits – as part of the Medicare Funding Warning Response Act of 2008, and said the provisions would help protect seniors' access to quality long term care and services.
"Throughout the nation, nursing facility and assisted living providers are experiencing sustained increases in liability insurance premiums – due to the continuing problem of inappropriate lawsuits threatening seniors' access to quality care," stated Bruce Yarwood, President and CEO of AHCA/NCAL.
"Public healthcare funds earmarked for critical long term care services for vulnerable seniors and the disabled continue to be redirected away from quality care – to the detriment of every patient and every taxpayer," continued Yarwood. "At a time when our profession and the federal government are working successfully to improve care, it's counterproductive to stand by and watch resources that could enhance quality be taken away from patient care."
The liability reform proposal, which was required by the 2003 Medicare Modernization Act (MMA), must now be introduced by Congress within three days upon their return to Washington following the current district work period. The provisions of the proposal include:
- Setting a statute of limitations of 3 years on all health care lawsuits;
- Capping non-economic damages at $250,000;
- Maximizing patient recovery by capping attorney's contingency fees;
- Permitting the introduction of collateral source benefits in all health care lawsuits;
- Specifying new guidelines for the awarding of punitive damages and capping such damages at $250,000, or two times economic damages (whichever is greater); and
- Allowing for periodic payment of any damage award over $50,000
"It is counterproductive to allow limited resources that should go toward quality enhancement to be re-directed to cover lawsuit expenses. We thank the Bush Administration for again addressing this important legal reform."
The American Health Care Association and National Center for Assisted Living (NCAL) represent nearly 11,000 non-profit and proprietary facilities dedicated to continuous improvement in the delivery of professional and compassionate care provided daily by millions of caring employees to 1.5 million of our nation's frail, elderly and disabled citizens who live in nursing facilities, assisted living residences, subacute centers and homes for persons with mental retardation and developmental disabilities. For more information, please visit www.ahca.org or www.ncal.org.