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Bush says bar on 'frivolous lawsuits' essential in patients rights bill
Feb. 7, 2001 | 5:38 p.m.
By RON FOURNIER AP White House Correspondent WASHINGTON (AP)
-- President Bush told Congress on Wednesday he would support popular
new patients' rights, but only if HMOs and other health insurance companies
are protected against ``unnecessary and frivolous lawsuits.''

The president stopped just short of promising to veto a bipartisan bill
gathering steam in Congress, warning in three separate messages to
Capitol Hill that he wants limits on damage awards. Bush also said he
believes the lawsuits should go through federal courts, where no punitive
damages are allowed.

``Americans want meaningful remedies, not a windfall for trial lawyers
resulting in expensive health care premiums and unaffordable health
coverage,'' Bush wrote in a document billed as his principles for a `
`Bipartisan Patients' Bill of Rights.'' His message was received warmly
by a key Democrat pushing the counter proposal.

``To protect patients' rights without encouraging excessive litigation,
damages should be subject to reasonable caps,'' he said. Bush, who also
wrote separate letters to Democratic and Republican congressional leaders,
has said big jury awards would drive up the cost of health care and force
employers to drop or reduce coverage for workers.

His remarks were the latest salvo in what is shaping up to be a politically
charged fight over HMO reform -- an issue that voters put high on their
list of concerns in most polls.

On Tuesday, Bush's staff persuaded a key Republican, Rep. Charlie
Norwood of Georgia, to drop his support of a patients' rights bill pushed
by liberal Sen. Ted Kennedy, D-Mass., and conservative Sen. John McCain,
R-Ariz., Bush's presidential primary rival.

White House aides are working behind the scenes to slow the
McCain-Kennedy measure both because Bush worries about runaway
lawsuits and because aides feared he wouldn't get credit for improvements
that move forward without his stamp.

In his messages to the Hill, Bush said all lawsuits should be directed to
federal court, meaning patients would be barred from state courts, where
damage awards are typically much higher. The McCain-Kennedy bill
would direct certain cases -- those that deal with interpreting an insurance
contract -- to federal court. But their bill allows for a ``civil assessment'' of
up to $5 million, which is essentially the same as punitive damages.

Bush has not said what sort of punitive damages he would accept,
though aides point to a law he approved in Texas that had a $750,000 cap.

Kennedy said in a statement he was encouraged by Bush's messages,
saying he was hopeful a bipartisan compromise could be reached ``on
our remaining differences and provide all patients with the protections
they deserve.''

Bush's call for reforms that cover all Americans marks a milestone in the
debate over patients rights.

For a long time, the debate between Democrats and Republicans was
whether a federal patient protection law was needed at all -- with Democrats
pushing the agenda. Then the debate was over whether to give patients the
right to sue, and Republicans tended to balk. Now the question is whether
the lawsuits should be in federal or state courts.

Bush is siding with Democrats in what has been an ongoing debate over
who the bill should cover.

Senate Republicans have insisted that federal legislation only cover
patients and health plans that are exempt from state regulations.
But Democrats want the legislation to cover everyone, so all patients
get the protections.

As is his legislative style, Bush laid out a series of principles -- avoiding
specifics that could make it difficult to compromise or declare victory
down the road. Those principles included:

--Ensuring that ``every person enrolled in a health plan enjoys strong
patient protections.''

--Protecting patients rights to emergency room care, direct access to
obstetricians, gynecologists and pediatricians, access to needed
prescription drugs and approved clinical trials.

--Letting patients appeal a health plan's decision on treatment to an
independent, binding panel. Litigation would be possible if the panel
rules against the patient, but it should be ``a last resort.''

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