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Wendell Potter

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Rick Perry's Snake Oil Cure for Our Sick Health Care System

Posted: 09/01/11 10:14 AM ET

In his quest to win the Republican presidential nomination, Texas Gov. Rick Perry is perpetuating a convincing hoax: that implementing Texas-style tort reform would go a long way toward curing what ails the U.S. health care system.

Like his fellow GOP contenders, Perry consistently denounces "Obamacare" as "a budget-busting, government takeover of healthcare" and "the greatest intrusion on individual freedom in a generation." He promises to repeal the law if elected.

Unlike those in the "repeal-and-replace" wing of the Republican Party, however, Perry has emerged as leader of the "repeal-and-let-the-states-figure-it-out" wing that believes the federal government has no legitimate role in fixing America's health care system.

"To hear federal officials tell it, they've got all the answers on health care and it's up to the rest of us to sit, wait and embrace whatever solution -- if any -- they may eventually provide," Perry wrote in a newspaper commentary in 2009. "I find this troubling, since states have shown they know a thing or two about solving problems that affect their citizens."

Even as he points with pride to the alleged benefits of malpractice and other tort reforms that have been enacted during his tenure as governor of Texas, Perry says he is opposed to tort reform at the federal level. He cites the 10th Amendment to the Constitution, which states-rights advocates say limits the role of the federal government.

But if Perry had his way, all the states would do as Texas did in 2003 when lawmakers enacted legislation, which he championed, limiting the amount of money juries can award patients who win malpractice lawsuits against doctors and hospitals. The legislation capped non-economic (pain and suffering) damages at $250,000 in lawsuits against doctors and $750,000 against hospitals. A few months after he signed the bill into law, the state's voters narrowly passed a constitutional amendment, also endorsed by Perry, which had the same effect. Proponents of the amendment wanted to be sure the new law would be constitutional.

Texas, he wrote in that 2009 commentary "stands as a good example of how smart, responsible policy can help us take major steps toward fixing a damaged medical system, starting with legal reforms."

As a result of the 2003 tort reform law, malpractice liability insurers reduced their rates in Texas and, according to Perry, the number of doctors applying to practice medicine in the state "skyrocketed."

He says that in the first five years after tort reform was enacted, 14,498 doctors either returned to practice in Texas or began practicing there for the first time.

That certainly sounds impressive -- so long as you look at that number in isolation. But when you look at how Texas stacks up with the rest of the country in terms of physician growth in direct patient care, tort reform appears to have given Texas no leg up in competition with others states for doctors. In fact, according to statistics compiled by the American Medical Association and other physician organizations, Texas has actually lost ground when it comes to the number of doctors practicing in the state since tort reform was enacted. Big time.

In 2008, the number of physicians in patient care per 10,000 civilian population in the United States was 25.7. At just 20.2 doctors per 10,000 people, Texas ranked near the bottom of the 50 states. In fact, only nine states fared worse. In 2000, three years before tort reform, Texas was still bringing up the rear, but not as badly. Back then, 11 states fared worse than the Lone Star state.

Even more revealing, the number of doctors in patient care increased 13.2 percent nationwide from 2000 to 2008. It increased only 12.8 percent in Texas. The rate of growth was actually greater in 41 other states and in Washington, D.C. than it was in Texas.

It is true that malpractice insurance rates dropped in Texas after tort reform was enacted, but Texans would be hard pressed to claim any direct benefit from that drop -- except, that is, Texans who are doctors.

The Dallas Morning News published a chart earlier this year showing that the average malpractice rate charged OB/GYNs in Texas by the state's largest domestic insurer of physicians fell from $53,752 in 2003 to $33,881 in 2011. The paper reported drops of similar percentages for doctors in family practice and general surgery.

Advocates of tort reform have long claimed that one of the reasons for escalating health care costs is the "defensive medicine" doctors practice, such as over-treating and prescribing more medications and diagnostic tests than necessary, out of fear of being sued. Well, if Texans believed their own health insurance rates would go down once tort reform made defensive medicine less prevalent, they have by now been disabused of that notion. The chances of a Texas family saving a few bucks on premiums would actually be greater if they moved to another state.

In 2010, the average premium for family coverage in Texas was $14,526. That's $655 higher than the U.S. average. Those numbers seem to indicate that doctors have not passed on their own insurance savings to their patients and that they are not practicing medicine any less defensively than before tort reform was enacted.

Not only are Texans paying more for their own insurance while doctors are paying less for theirs, their chances of getting employer-subsidized coverage is less than it would be if they lived in another state. The Dallas Morning News, citing statistics from the Agency for Healthcare Research and Quality and other sources, reported that a smaller percentage of employers in Texas offered coverage to their workers last year than in the U.S. as a whole (51 percent and 53.8 percent, respectively). And the Texans who do have coverage through the workplace are contributing far more out of their own pockets for that coverage than people who live in most other states. In Texas last year, the average employee contribution toward company-sponsored coverage was $4,500. The U.S. average was much lower: $3,721.

Another statistic Perry is not likely to mention when he talks about the benefits of tort reform is the number of Texans who are uninsured. The U.S. Census Bureau reports that Texas continues to be the state with the highest percentage of its residents without coverage, a whopping 25 percent last year, compared to about 16 percent nationwide. It was dead last in 2003 and it is dead last now.

All this should leave us wondering what "thing or two" states have come up with to solve the problems that affect their citizens. Considering the dismal state of health care in Texas, perhaps Perry had Massachusetts in mind.

 
 
 

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bouvdoggie
hopeful pessimist
01:16 PM on 09/02/2011
I do agree that limits have got to be set for the amounts given by juries to individuals. However, exactly how much is your enduring pain each and every day worth? I don't think there is any way to determine that. There is a way to place a value on a person's ability to work over a lifetime. You have to go by past performance, education a person has or is getting, age of the person, retirement, etc. Enjoyment of life is yet another unidentifiable quality that these juries have to consider. Medical care needed for the rest of a person's life, trauma caused to the family by a medical goof. Most are unanswerable but need to be addressed by juries. There are some lawyers who take advantage of the system and win outrageous awards for people who don't deserve anything and that will make it harder for the innocent victims to get much. Greed is the bottom line.
10:25 AM on 09/02/2011
"In 2010, the average premium for family coverage in Texas was $14,526. That's $655 higher than the U.S. average. Those numbers seem to indicate that doctors have not passed on their own insurance savings to their patients"

Does anyone realize physicians don't set the prices for their services? They are largely dictated to them by the state and federal governments. What it does mean is that service is available as there are physicians coming in to treat people. As opposed to places with accute shortages of physicians where people can't get treatment as a result.

For example, South Florida, where you can't get an OBGYN.
HUFFPOST PUNDIT
noaxe397
10:06 AM on 09/02/2011
Here in AZ this type of tort reform nonsense doesn't happen because the AZ Constitution prohibits placing limits on jury awards.
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thejazz
I'll burn that bridge when I come to it.
08:59 AM on 09/02/2011
If you do the numbers, there are approx 50000 doctors in texas. Take their total savings drom torte reform, divide by total spend on care, you get 0.27% savings from torte reform in Texas. Not a great savings at all.
justobserve
Not left nor right or center. Just a free thinker!
08:07 AM on 09/02/2011
No wory! All these "small government conservatives", "let's state government do their own",..., are the first ones to run to the federal government for help! Their motto is "take 99% of federal government's money and refuse 1% to be able to claim we are against the fed's meddling in state affairs" then when the money comes, big smile at the photo ops "we fought for the money for you"!
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dlo2
MS RN
07:26 AM on 09/02/2011
Perry did such a good job at tort reform in Texas that a med-mal colleague told me that she had a client who had the wrong leg amputated in a Texas hospital... thanks to Perry's 'successful' tort reform there would be little legal adequate and appropriate recourse for this tragically compromised person, victim of extreme medical malpractice.
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01:21 AM on 09/02/2011
T.R. Reid, correspondent and author of "The Healing of America" , did a one-hour PBS show, "Sick Around the World", comparing the health care systems of the U.S., Britain, Switzerland, Germany, Taiwan, and Japan, available for viewing at:

http://www.pbs.org/wgbh/pages/frontline/sickaroundtheworld/
FRONTLINE: sick around the world |PBS

This site has graphs comparing the health care systems of Japan, Britain, Switzerland, and Germany.

http://www.pbs.org/wgbh/pages/frontline/sickaroundtheworld/etc/graphs.html
FRONTLINE: sick around the world: Graphs: U.S. Health Stats Compared to Other Countries | PBS

Four of the five countries have social insurance similar to the U.S.:

http://www.pbs.org/wgbh/pages/frontline/sickaroundtheworld/countries/
Five Capitalist Democracies & How They Do It | Sick Around The World | FRONTLINE | PBS

The U.K. has socialized medicine, through its National Health Insurance
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Robert 999
Elections have Consequences
03:50 AM on 09/02/2011
Great links... I remember the PBS Frontline show you reference back in 07, 08, it was a big eye opener and convinced me Single pay European Medical is far superior to our current system. PBS has or had some great Documentaries, and I cant help but think information provided to Citizens via PBS is why the GOP is in the process of ending Federal funding for PBS.
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10:48 AM on 09/02/2011
T.R. Reid, a Catholic, wrote an op-ed on the U.S. being Number 1 in abortions in the developed world, because of the lack of universal health care:

http://www.washingtonpost.com/wp-dyn/content/article/2010/03/12/AR2010031202287.html
T.R. Reid - Universal health care tends to cut the abortion rate - washingtonpost.com

Mr. Reid also did a three-hour interview on C-Span:

http://www.booktv.org/Watch/11328/In+Depth+TR+Reid.aspx
In Depth - In Depth: T.R. Reid - Book TV
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dlo2
MS RN
08:21 AM on 09/02/2011
Thanks so much for posting this. Absolutely excellent. I hadn't seen it before. Here in our school we are scrutinizing US healthcare.
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10:43 AM on 09/02/2011
You're welcome.

I'm glad your class is US healthcare­.
12:18 AM on 09/02/2011
What comes out when this man opens his mouth is nonsense. That's probably why he's doing so well in the polls.
Javalation
Laughing in a Daydream
10:16 PM on 09/01/2011
As if tort settlements is what ails our "health care" system. But then simple answers work for cons who try to keep everything simple enough for simple people to think they understand complex issues.
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Chris1962
NYC
09:27 PM on 09/01/2011
What's sick about this Health Care system is that laughably unconstitutional King George-style "mandate," ordered up by the insurance lobbyist and obediently agreed to by the man of change: http://www.youtube.com/watch?v=5PwqSCJmbxk
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01:56 AM on 09/02/2011
No, ordered up by CEO's; your heroes.
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noaxe397
10:07 AM on 09/02/2011
Better you being mandated to pay for your health insurance than me being mandated to pay for your free ER visit.
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Russell Masingale
weary I am of the Astroturf.
06:14 PM on 09/03/2011
best free market answer ever! actually force people to live by their beliefs haha! but seriously medicare for all would be better. lower cost, less admin waste less cost overall because people get treated before little things become big problems.
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Miracle Politics
Love is the answer; whatever the question.
07:11 PM on 09/01/2011
Speaking of state's rights, one of the advantages of the Affordable Health Care Act is that it gives states wide latitude in implementation of their coming state health insurance exchanges and allows states to go much farther in a progressive direction than the Federal bill requires.

Vermont is able and is no going for single-payer health-care which many of us here support.

http://www.huffingtonpost.com/2011/05/26/vermont-health-care-reform-law-single-payer_n_867573.html

In California, there will be a referendum on the ballot in November 2012 to establish a robust statewide open-to-everyone public health insurance option. That's 1/9th the population of the country right there having access to a the robust public health option.

http://www.consumerwatchdog.org/story/health-care-measure-seeks-public-option-rollbacks

Even so, California State Senate Bill 810, sponsored by State Senator Mark Leno, would bring single-payer health care to California. It is stuck in committee even though it has passed the legislature before. Call your state legislators and ask them to support it.

http://californiaonecare.org/about-2/sb-810/senate-bill-no-810/

Even for people who live in red states, they could encourage this blue state progress. Getting a robust public health insurance option open to everyone, let alone single-payer Medicare-for-All, past a 60-vote filibuster in the Senate, let alone a Republican House may take a few election cycles.
06:04 PM on 09/01/2011
Perry's "Texas Miracle" is that it's a miracle anyone still lives there, or if they do, that they manage to survive.
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HST
Conservatism = selfishness
05:06 PM on 09/01/2011
"According to the actuarial consulting firm Towers Perrin, medical malpractice tort costs were $30.4 billion in 2007, the last year for which data are available. We have a more than a $2 trillion health care system. That puts litigation costs and malpractice insurance at 1 to 1.5 percent of total medical costs. That’s a rounding error. Liability isn’t even the tail on the cost dog. It’s the hair on the end of the tail."
http://prescriptions.blogs.nytimes.com/2009/08/31/would-tort-reform-lower-health-care-costs/
05:01 PM on 09/01/2011
Not only are Texans paying more for their own insurance while doctors are paying less for theirs..also 6 mill children go hungry in Texas, and the uninsured is 25%...real god like attitude this snake has! If anyone in their right mind could actually vote this man into being our president they need not to vote as they obviously know nothing about this man! He is pure evil as he stands behind GOD when he acts the DEVIL himself...how he can actually sleep at night...I hope when his time comes the devil will elect him presidnet of HELL
04:39 PM on 09/01/2011
MR. Wendell, Just to add a few important points to the discussion:
Only 2% of medical costs (in the US) are due to medical malpractice.
Most states already have caps on non economic damages (pain and suffering).
California has a cap of 250k since the 1970s.
The United States has the third-highest rate of deaths from medical errors, among OECD countries. Further limiting the ability to sue would likely increase this rate.