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CBO Says Lawsuit Reform Would Cut Health Costs

A section of the Congressional Budget Office's analysis of the Senate Finance Committee's version of Health Care Reform addressed the effects of the proposal to limit costs related to medical malpractice or tort reform. Senator Chuck Grassley, R-Iowa, who serves as ranking member of the Finance Committee says the CBO analysis confirms that meaningful tort reform would significantly cut down on health care costs.

According to Grassley, doctors often order tests just to protect themselves from lawsuits, not to treat patients. Or they limit their services or even shut down their practices altogether because of skyrocketing malpractice costs.

"The more federal health care programs spend on unnecessary tests, the less money is available for necessary patient care," Grassley said. "Cutting medical liability costs would help preserve patients' access to care."