As it enters the Fall with few accomplishments to
show for its efforts, the Congress is now turning its
attention to a number of matters of interest to
consumers, including managed care legislation as well as
small business liability protection and asbestos and car
rental company immunity bills.
Managed Care - Patients' Bill of
Rights
The possibility is now very real that legislation may
be approved by the U.S. House of Representatives to
expand consumers' rights by eliminating the ERISA
preemption of state causes of action and allowing
injured patients to hold managed care insurers legally
accountable for delay or denial of needed medical care
that results in death or injury.
The Republican leadership had planned to bring
managed care legislation to the floor for consideration
soon after Labor Day, and it encouraged the writing of
the GOP's bill (H.R. 2824 by Reps. Coburn and Shadegg)
as an alternative to the Bipartisan Consensus Managed
Care Improvement Act (H.R. 2723 by Reps. Norwood and
Dingell). However, the U.S. Chamber of Commerce, the
National Federation of Independent Business (NFIB),
managed care insurers, and many House Republicans think
even the GOP bill goes too far in terms of patient
protection.
The Norwood-Dingell measure alone, however, provides
for an independent external appeals process and suits
against insurers under state law. In certain, very
limited, circumstances, the Coburn-Shadegg bill would
permit suits in federal court; this bill would also cap
non-economic damages at $250,000.
ATLA and a coalition of 400 organizations of
consumers and health professionals are actively working
for a favorable vote on the bipartisan Norwood-Dingell
bill. The House leadership delayed consideration and
Speaker Hastert has indicated that he intends to
schedule floor consideration of managed care bills the
week of October 4.
Small Business Liability Protection
A hearing on the Small Business Liability Relief Act
(H.R. 2366 by Reps. Rogan and Holden) was held in the
U.S. House Committee on the Judiciary on September 29.
The bill would eliminate joint and several liability and
cap punitive damages at the lesser of $250,000 or three
times compensatory damages in all civil actions for
businesses with 25 or fewer employees. It also provides
seller vicarious liability protection.
ATLA is opposed to this unnecessary measure, which
would only succeed in preventing children and other
injured consumers from recovering the full costs of
injuries caused by those rare small businesses which
manufacture or sell very dangerous products or harmful
services. ATLA president Richard H. Middleton, Jr.,
testified against HR 2366. His extensive, fact-filled
testimony can be found here.
Asbestos Immunity
Efforts are currently under way to re-write the
Fairness in Asbestos Compensation Act (H.R. 1283 by Rep.
Hyde) in anticipation of a House markup. An initial
hearing, at which ATLA testified against the bill, was
held in the House on July 1 (click here
for a summary of this testimony). A Senate hearing on
Sen. Ashcroft's S. 758 has been set for October 5. ATLA
president Richard H. Middleton, Jr., testified against
this bill. His testimony and statement can be found here.
While most asbestos companies believe the current
system is working well for all parties (only 55 cases
came to trial in 1998, while Owens Corning, for example,
settled 217,000 cases that year), the GAF Corporation,
which no longer has insurance coverage, is the principal
advocate of the measure. The proposed bill would set up
an elaborate bureaucracy and medical criteria prepared
by corporate lawyers to screen out 60 to 80 percent of
potential claimants.
ATLA will continue to vigorously oppose this measure,
which assures not one penny of compensation to even one
asbestos victim, while shielding from liability an
industry responsible for the injury or death of millions
of workers and consumers.
Car Rental Company Immunity
On September 30, the Senate Committee on Commerce,
Science and Transportation held a hearing on S. 1130,
"The Motor Vehicle Rental Fairness Act," which would
protect car rental companies from liability by
abolishing the principle of vicarious liability in the
several states which have applied it to these rental
agencies.
Vicarious liability ensures that injured parties are
compensated for the harm they have suffered, and
encourage renters and lessors of cars, and other
merchants, to monitor their products and services more
carefully, thereby ensuring safer products in the
marketplace. This bill chooses to protect a thriving car
rental industry rather than preserve a long-standing
legal principle, and derogates state prerogatives on
behalf of special interests. Former ATLA president Larry
S. Stewart testified against S. 1130. His testimony can
be found here.
Note: For the latest version of these bills
and their status, see http://thomas.loc.gov/ and search at the
top of the page for the bill
number.