Senate Turns Back Malpractice Caps

(CBS/AP)  Senate Democrats won their fight Wednesday to bottle up legislation that would put a $250,000 cap on damage awards in medical malpractice cases, all but dooming a measure that President Bush had made a priority.

The vote was 49-48, 11 short of the 60 needed to overcome the Democratic-led filibuster.

Doctors, hospitals and insurance companies – who've donated generously to Republicans – say the limits are vital to stopping the out-of-control spiral of malpractice insurance rates. But Democrats – who rely heavily on trial lawyers for support – say such a cap would hurt victims and do little to stop insurance companies from raising rates

Republicans knew going in there was no chance of passing this, reports CBS News Correspondent Bob Fuss, but hope it will emerge as a political issue in next year's elections.

GOP aides said in advance that Majority Leader Bill Frist, R-Tenn., was prepared to pull the bill from the floor if it failed the test vote, but said the issue would return, either in Congress or the 2004 elections.

"The problem is caused by out of control jury awards in frivilous lawsuits, which are cheaper to settle...than they are to fight," said Sen. John Ensign, R-Nev. "And the reason they'll settle is because of the potential for huge awards ... then pass the higher rates on to doctors.

Democrats countered that rising premiums were not to blame and said the bill would punish individuals already grievously impaired by medical errors while protecting groups such as the American Medical Association, HMOs, drug companies and the manufacturers of medical devices.

"Time and time again this Senate races to protect special interest groups and forgets the families and children and elderly people across America who are the victims of this wrongdoing," said Sen. Dick Durbin, D-Ill.

The legislation proposed limiting non-economic damages, commonly known as pain and suffering, to $250,000. Punitive damages would be capped at the greater of $250,000 or twice the amount of economic damages, which cover medical expenses, loss of wages, funeral expenses and similar costs. States would be permitted to enact higher limits.

Additionally, the measure called for limiting the amount of money attorneys could pocket if they work on a case on a contingency fee.

From the start, the bill seemed unlikely to advance far.

Frist brought it to the floor without any committee hearings or debate — the type of tactic that Republicans sharply criticized when Democrats employed it in the 18 months they recently held the majority.

At its core, the bill marked a clash of special interests. The American Medical Association, American Insurers Association and the American Hospital Association, all of which donate millions to Republican causes, supported the measure.

Additionally, some Republican aides, speaking on condition of anonymity, said the party was hoping that advancing the legislation in Congress would repair relations with the AMA, frayed during a prolonged debate over patients rights legislation.

The Association of Trial Lawyers of America, which gives to Democrats, worked to defeat the measure.

The House passed similar legislation earlier this year, on a largely party-line vote.

McConnell and other Republicans relied repeatedly on AMA material during debate on the measure, using a map of the United States to identify states that the doctors' organization said were at or near a malpractice crisis.

"This is now truly about patients having access to quality health care," Ensign said.

Democrats didn't dispute the need for legislation, but rejected the Republican claim that a cap would curb malpractice rates.

Additionally, Senate Democratic Leader Tom Daschle told reporters that the proposed cap would apply more broadly than to doctors.

"Under that cap would also go HMOs, medical device manufacturers, hospitals, you name it, drug companies...This is more than just a doctor protection. This is a protection for anybody involved in health care delivery."

Durbin and Lindsey Graham, R-S.C. backed an alternative that included a voluntary reporting system for medical errors and tax credits to defray the rising cost of malpractice insurance for some doctors. But under the Senate's rules, Democrats had to allow the GOP measure past the 60-vote hurdle before the rival plan could be considered.