During the presidential campaign, Barack Obama promised to "strengthen antitrust laws to prevent insurers from overcharging physicians for their malpractice insurance." The final health care bill didn't do exactly what he promised, but it takes steps to attack the overarching problem.
Obama has been sympathetic to the argument -- most often advanced by Republicans -- that doctors sometimes call for unnecessary tests and procedures for fear of lawsuits. These tests, combined with elevated malpractice insurance rates, increase the cost of health care.
Obama has rejected a favorite Republican solution -- capping jury awards. Republicans argue that this is a sop to trial lawyers, a Democratic-leaning constituency. Still, Obama has on a few occasions publicly cited malpractice awards as a good subject for a bipartisan solution.
The final health care bill contains a provision on this topic. The bill will award five-year "demonstration grants" to states to develop, implement and evaluate alternatives to current tort litigations, according to an analysis by the Kaiser Family Foundation. "Preference will be given to states that have developed alternatives in consultation with relevant stakeholders and that have proposals that are likely to enhance patient safety by reducing medical errors and adverse events and are likely to improve access to liability insurance," KFF said, with funding appropriated for five years beginning in fiscal year 2011.
Meanwhile, the House initially approved language that would have removed the existing antitrust exemption for health insurers and medical malpractice insurers, but it did not make it into the final bill.
Republicans don't see the bill's malpractice language as going far enough, and the antitrust provision did fail to advance. But the malpractice provision in the bill does take steps toward attacking the general problem of over-litigation that drives up prices for malpractice insurance. So we rate this promise a Compromise.