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October 2009
CBO Releases Analysis of Effects of Tort Reform Proposals
Today, the Congressional Budget Office (CBO) released a letter updating its analysis of the effects of proposals to limit costs related to medical liability. It concluded that tort reform could affect healthcare costs both directly and indirectly; directly, by lowering premiums for medical liability insurance; and indirectly, by reducing the use of diagnostic tests and other healthcare services when providers recommend those services principally to reduce their potential exposure to
lawsuits. CBO now estimates that implementing a typical package of tort reform proposals nationwide would reduce total U.S. healthcare spending by about 0.5% (about $11 billion in 2009). That figure is the sum of a direct reduction in spending of 0.2% from lower medical liability premiums and an additional indirect reduction of 0.3% from slightly less utilization of healthcare services. (Those estimates take into account the fact that because many states have already implemented some of the changes in the package, a significant fraction of the potential cost savings has already been
realized.) Enacting a typical set of proposals would reduce federal budget deficits by roughly $54 billion over the next 10 years, according to estimates by CBO and the staff of the Joint Committee of Taxation. That figure includes savings of roughly $41 billion from Medicare, Medicaid, the Children’s Health Insurance Program, and the Federal Employees Health Benefits program, as well as an increase in tax revenues of roughly $13 billion from a reduction in private healthcare costs that would lead to higher taxable wages.
Login/Registration Instructions for New Website
The newly redesigned PIAA website, www.piaa.us, has an enhanced individualized login feature that allows all board members, employees, and authorized representatives of PIAA member companies access to personalized member services and information. Create an online account to register for meetings and workshops, access enhanced content for members only, and utilize the restructured online store and shopping cart system. The setup is one-time, quick, and easy. Click here and follow five simple steps.