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    SEPTEMBER 28, 1999

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Press Release

Press Release

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Texas HMO Liability Experience
Proves External Review,
Tort Reform Work
Washington Post Report Ignores Texas Tort Reform Effort,
Downplays Success of Strong External Review - While
Lawsuits Remain Untested

 

WASHINGTON, D.C. - Congressman John Boehner (R-OH) today challenged a Washington Post report on Texas' experiment with HMO liability and argued that the Lone Star State's experience, if anything, underscores the value of giving patients a strong, enforceable, binding external review as an alternative to lawsuits.

"If anything, the Texas experience proves what we've been saying all along: external review works," Boehner said.

"Texas' external appeals system has been tested repeatedly since the Texas law was implemented, while the liability provision itself - by the trial bar's own admission - hasn't been tested at all," Boehner said. "If we're going to jump the gun and conclude that the Texas law hasn't caused higher costs and reduced access, then let's give credit where credit is due: to external review."

Instead of expanding lawsuits, Boehner's CARE Act (H.R. 2926) gives patients the protection of a strong, enforceable, legally-binding external review by independent doctors and medical experts. Under the CARE Act, health plans are subject to prosecution and severe financial penalties of up to $5,000 per day if they fail to provide patients with the care physicians prescribe. The Texas law also features a strong external review for patients - a component that is keeping patients and insurers out of court, Boehner says, because it's doing what lawmakers have said it would do.

Boehner also pointed out that Texas adopted a sweeping tort reform law several years before passing its HMO liability law - a measure that has helped discourage trial lawyers from filing frivolous suits. Boehner, who was interviewed by the Washington Post for this morning's story, expressed concern that this key fact was omitted. Medical tort reform is a major component of the CARE Act.

While Texas' external appeals system is performing admirably, the state's liability law is largely untested - a fact the Texas trial bar itself acknowledged to the Post.

"Plaintiffs' attorneys in Texas acknowledge that they are proceeding gingerly for now, choosing their first cases with special care to try to make the point that some HMOs stint on care," the Post reports.

Last spring, the House Education and the Workforce Subcommittee on Employer-Employee Relations heard compelling testimony from the head of Georgetown University's Institute for Health Care Research and Policy, Dr. Geraldine Dallek, M.P.H., regarding the institute's study on the external review experiences of patients in 13 states. In virtually all cases, the Georgetown study found, external review was "widely regarded [by managed care patients] as a valuable and fair process" for ensuring that patients get the care they need when they need it.

Boehner is chairman of the Employer-Employee Relations Subcommittee.

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