Medical Malpractice Issues: Bailey introduces major health care legislation in House

OLYMPIA -- Taking aim at the underlying causes of the state's health care crisis, Rep. Barbara Bailey, R-Oak Harbor, today introduced major omnibus legislation that includes several meaningful reforms toward significantly lowering the cost of health insurance and improving consumer access to medical services.

"The major problem separating consumers from their ability to access health care in Washington is the cost. The costs of health care and insurance coverage have grown by millions of dollars in recent years, reducing availability for consumers. Many of those expenses in Washington have been driven upward by regulations, policies and mandates adopted by our state," said Bailey, ranking Republican of the House Health Care Committee. "Today we are providing an opportunity through this bill to set our state on a new course that will lower costs, improve access, increase competition in the private marketplace through more options, and give consumers more control over their health care services."

House Bill 1686 would place a moratorium on new mandated health benefits and require an independent cost-benefit analysis of the existing 47 health coverage mandates in Washington.

"Mandates increase the cost of basic health coverage by as much as 50 percent. Every additional mandate we place on health insurers adds more to the expense of buying coverage. Even as recent as last Friday, the House voted to add one more mandate with the mental health parity bill," said Bailey. "We must examine every mandate and determine exactly how it is impacting access to health care coverage."

Bailey noted that the mandates have created an "all-or-nothing" insurance system, which has forced the price of health insurance to be too expensive for employers and small businesses seeking to provide coverage for their employees. HB 1686 would work to reduce mandates and restore insurance options through competition in the private marketplace.

"Washington's mandates require employers who wish to purchase health care coverage for their employees to buy the Cadillac plan. There are no other options. You either get the full plan, or if you cannot afford it, you and your employees go without," said Bailey.

"Most small businesses would like to provide insurance to their employees. However, the number of employers who offer coverage has dropped 18 percent since 1993. Why? It's because of the cost. Many simply cannot afford the Cadillac plan," added Bailey. "And of those still providing insurance, most saw premium increases of more than 20 percent last year. By reducing the mandates, we reduce those costs so that employers can purchase health insurance for their employees specifically geared to their needs."

One of the other major cost drivers of health care, said Bailey, is the tort system.

"Not only does the expense of medical malpractice premiums increase the cost of health care, it also limits access by forcing doctors who cannot afford insurance to quit practicing or leave the state," noted Bailey.

HB 1686 would enact medical malpractice reforms to stabilize the health care liability insurance market, including capping non-economic damages to $350,000, limiting lawyer's fees in malpractice lawsuits, and requiring a defendant to pay a proportionate share of damages based on the proportionate share of fault. Components in the measure largely replicate Initiative 330, proposed by a coalition of the Washington State Medical Association.

"It's important for people to understand that this legislation would not prevent victims from receiving compensation when a procedure has gone wrong. Instead, this bill would prevent frivolous lawsuits and awards that are beyond unreasonable, and would finally let us take control of these costs," added Bailey.

Finally, the fourth component of the measure would create Health Savings Accounts to be offered to public employees as a choice for their health benefits.

"Health Savings Accounts would allow people to save money tax-free to be used for their own health care needs. HSAs aim at empowering people to make decisions for themselves, owning their own health care plan, and at the same time bringing control into the cost of health care," Bailey said. "It would also help to educate people to the true costs of their own health care, allowing them to make choices."

Bailey added that while some have advocated expansion of government programs to provide health care, she believes that's the wrong direction.

"The last time government tried to ride to the rescue on the issue of health care costs by implementing a universal health care system in 1993, it was an absolute disaster. Government has never shown that it can do better than the private sector. Government-run health care will only take us in the direction of higher costs, fewer choices, a sacrifice in quality, and long waiting lines," noted Bailey. "Expanding government care doesn't get at the root of the problem. The only way to truly solve our state's health care crisis is to get at the underlying causes of the problem. This bill provides that solution."

The measure has been referred to the House Health Care Committee for consideration.