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May 11, 2000
 
HMO LOBBY TURNS BACK ON FIVE YEARS OF LIABILITY COMPROMISE
NORWOOD CAUTIONS CONFEREES AGAINST FURTHER NEGOTIATIONS
 
Washington, DC —  – Five years of liability reform concessions to the HMO lobby have resulted in the industry’s rejection of their own proposals, according to U.S. Representative Charlie Norwood (R-GA), co-author of the Norwood-Dingell managed care reform bill currently embroiled in conference debate. 

Norwood made the assertion today in light of the latest anti-reform attack ads funded by key front organizations for the HMO industry.   The ads allege that the Norwood-Dingell bill would allow unlimited punitive damages, expose employers to vicarious liability from lawsuits against HMO’s, foster class-action lawsuits similar to on-going tobacco and asbestos litigation, and force employers to provide specific benefits. 

“That’s the same thing they said five years ago when we introduced the Patient Protection Act, HR2400, in the 104th Congress,” says Norwood.  “We have addressed every one of their objections in the current bill, and it hasn’t made a dent in their rhetoric.  If the conference committee attempts to overcome the points in these latest ads, they’ll end up with the exact same bill they have on their desk today.” 

Norwood says the House-passed bill already addresses everything the HMO lobby alleges in their ads:

HMO Objections              Norwood-Dingell Provisions
Unlimited Punitive Damages          No Punitive Damages If HMO Abides By Appeals Process
                                                    Leaves in Place 33-state Punitive Caps 

Class-Action Lawsuits                  Bans Class-Action Lawsuits

Employer Liability Under              Shields Employers From All Liability Under                   Discretionary Authority Rules        Discretionary Authority Rules 

Mandates Benefits  Bans Benefit Mandates

Norwood is calling on the Conference Committee to pass the liability section of Norwood-Dingell exactly as written, with no further compromises, in light of the industry’s latest ad campaign. 
 

CONGRESSMAN CHARLIE NORWOOD       1707 LONGWORTH BUILDING      WASHINGTON,DC 20515 


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