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| June 22, 2001 | |||
Gramm-Hutchison PBOR Amendment
Texas Language Would Make Good on Dems' Promises to Protect Employers From Lawsuits Contrary to the claims of its sponsors, the McCain-Edwards-Kennedy bill (S. 1052) would expose employers to state and federal lawsuits, with unlimited economic damages, unlimited non-economic damages, unlimited punitive damages in state court, and $5 million in damages in federal court. Its sponsors even have claimed S. 1052 is nearly identical to a Texas law - signed by then-Gov. Bush - that allows patients to sue their health plans:
"The president, during his campaign . . . looked the American people in the eye in the third debate and said, 'I will fight for a patients' bill of rights,' referencing the Texas bill. Our bill is almost identical [to Texas law]." [This Week with Sam & Cokie, June 17, 2001, emphasis added.]
On the contrary, McCain-Edwards-Kennedy is unlike Texas law in many ways. Most importantly, Texas law specifically protects employers from lawsuits. McCain-Edwards-Kennedy specifically authorizes lawsuits against employers. Page 145, line 3 of the bill reads:
. . . a cause of action may arise against an employer . . .
What follows are four pages explaining when an employer may be sued.
An amendment introduced today by Senators Gramm and Hutchison would apply language from Texas law to McCain-Edwards-Kennedy. Once and for all, the Gramm-Hutchison amendment would protect employers who voluntarily provide health benefits from facing unlimited lawsuits for doing so.
Employer health premiums are increasing at double-digit rates, and are expected to do so for the foreseeable future. Moreover, nearly half of employers surveyed report they would drop health benefits if exposed to the liability under McCain-Edwards-Kennedy.
The sponsors of S. 1052 know how to protect people from liability. The bill shields hospitals, insurance agents, and health professionals from certain types of liability. The Gramm-Hutchison amendment will ensure that employers receive these same protections.
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