Smoke and Mirrors
Like a magician who tosses a coin over his shoulder to make it seem to disappear, S.5 Class Action Fairness Act is now law. In simplistic terms, all but a marginally small number of class action lawsuits will now go to presumably stricter federal courts, rather than the slot-machine state systems. There is definately room to debate the pros and cons of this law, but set it aside for now. The amazing aspect of this law is that it does little or nothing to address the main issue that brought it to life in the first place. Tort reform is the coin republicans have thrown over their collective shoulder to make the health care issue seem to disappear.
To be certain, tort reform is desperately needed. After all, we live in a country in which kids can sue McDonalds because their parents are too lazy and stupid to teach their children healthy eating habits. However, tort reform was brought up during the 2004 presidential race as part of the solution to soaring health care costs. Trying to solve the health care crisis in America through tort reform is like putting three or four stitches into a shotgun wound. Right idea, but don't be stupid. Even if tort reform is the first step in health care reform, there has certainly been no serious discussion about where to proceed next. More tort reform is promised, but the discussion of exactly how this translates into health insurance for those who do not have coverage seems to have vanished. See the coin. Now you don't.
The theory is that tort reform will stop health insurers from paying the soaring cost of frivolous lawsuits, and this will trickle down to patients via health providers. Here in Reality Land, health insurers are not reknowned for pinching the life out of pennies to lower the rates for physicians. An insurance company that charges a physician $50,000 annually for insurance is not going to suddenly drop that rate because they are being sued less. Historically, the shareholders will be smiling, but physicians and patients will still get jacked.
In order for tort reform to have any realistic impact on health care costs, there would have to be a climate of competitiveness in the health care industry. No such competition exists. Most employers offer little or no selection in health care plans. This means that employees must select the insurance the employer offers, or none at all. From the employers perspective, insurers do not lower the cost to employers by offering lower rates for the same coverage. Rather, they often lower costs by offering less coverage. Trickle down effects simply cannot occur in this climate.
Our health care system is in serious jeopardy. Yet, of the dozen or so health care bills that have gone to committee this session, only two have republican sponsors. Both of these, incidentally, are directly related to Medicare. Translation: If you are represented by the powerful AARP lobby, then republicans love you. Expect flowers, hugs and kisses. However, if you are under age 50, republicans could not care a less if you go bankrupt trying to see to the medical needs of you and your family.
Republicans should be aware that the hand is not always quicker than the eye. The coin of tort reform is being flipped over their shoulders, but voters have not lost sight of health care reform. This has been a growing issue for over a decade. If they hope to keep their congressional majority and possibly the white house, republicans will stop trying to dazzle voters with the smoke and mirrors of tort reform, and get serious about the growing health care crisis.
