
The California Sinkhole
As the United States Senate takes on the health care issue, there is a clear difference of opinion on whether this $850 billion program will rein in rising health care costs or further bankrupt our nation. In a piece written recently, Sacramento Bee columnist Dan Walters noted a provision inserted into the 2,000-plus page health care bill that would wreak havoc on California.
Walters wrote that 34 years ago California passed a law that imposed a $250,000 limit on pain and suffering damages in medical malpractice cases. Walters also noted that during the 1970s, in response to the skyrocketing insurance premiums for malpractice insurance, many doctors threatened to leave the state or abandon specialized practices, particularly obstetrics.
However, California’s malpractice cap, which also was enacted in 30 other states, has been put on the chopping block by Speaker Nancy Pelosi in the health care bill pushed through the House. In the recently approved House health care bill, any state that repeals the malpractice cap would receive "incentive payments"–a modern day payoff.
As noted in by Walters, the Congressional Budget Office (CBO)… Read More