The Help Efficient, Accessible, Low-cost, Timely Healthcare Act, which was introduced early this year by three U.S. representatives, could reduce the national deficit by $14 billion through 2016 and $57 billion through 2021, according to estimates published by the Congressional Budget Office.
The HEALTH Act legislation includes a three-year statute of limitations for medical malpractice claims, with certain exceptions, from the date of discovery of an injury and a cap of $250,000 on awards for noneconomic damages, among other specifications.
The CBO concluded such medical malpractice reforms could drastically reduce healthcare spending both directly and indirectly in the form of lowered spending in healthcare programs and utilization of healthcare services and lowered premiums for medical liability insurance.
Specifically, the CBO and the Joint Committee on Taxation found implementing the HEALTH Act would reduce direct spending by approximately $48 billion and increase federal revenues by another $10 billion from 2012-2021. CBO also estimates that the HEALTH Act would eliminate $2 billion in discretionary spending for the Federal Employees Health Benefits Program, Department of Defense and VA over the same time period.
The CBO's cost estimate of the HEALTH Act was ordered by the House Committee on Energy and Commerce in early May.
Read the CBO's cost estimate report on the HEALTH Act (pdf).
Related Articles on the HEALTH Act:
Bipartisan Malpractice Reform Bill Introduced in House
Non-Economic Malpractice Damages Cap Bill Makes Its Way to House Floor
The HEALTH Act legislation includes a three-year statute of limitations for medical malpractice claims, with certain exceptions, from the date of discovery of an injury and a cap of $250,000 on awards for noneconomic damages, among other specifications.
The CBO concluded such medical malpractice reforms could drastically reduce healthcare spending both directly and indirectly in the form of lowered spending in healthcare programs and utilization of healthcare services and lowered premiums for medical liability insurance.
Specifically, the CBO and the Joint Committee on Taxation found implementing the HEALTH Act would reduce direct spending by approximately $48 billion and increase federal revenues by another $10 billion from 2012-2021. CBO also estimates that the HEALTH Act would eliminate $2 billion in discretionary spending for the Federal Employees Health Benefits Program, Department of Defense and VA over the same time period.
The CBO's cost estimate of the HEALTH Act was ordered by the House Committee on Energy and Commerce in early May.
Read the CBO's cost estimate report on the HEALTH Act (pdf).
Related Articles on the HEALTH Act:
Bipartisan Malpractice Reform Bill Introduced in House
Non-Economic Malpractice Damages Cap Bill Makes Its Way to House Floor