Senator Introduces New "Losers Pay" Malpractice Bill

U.S. Senator Lindsey Graham (R-S.C.) has introduced a new bill that will require medical malpractice plaintiffs who lose their lawsuits to pay the legal costs for both sides. 

Graham feels the legislation will help reduce the amount of people who file frivolous malpractice lawsuits.

"When both parties in a lawsuit are subject to financial penalty, people think longer and harder about bringing a questionable case forward," said Graham.

Experts believe fear of being sued for medical malpractice has caused physicians to feel more pressure to order or perform unnecessary tests or practice defensive medicine, thus driving up health care and insurance costs.  Supporters of health care reform also believe medical malpractice insurance has caused medical costs to rise.

"While no one with a valid claim for medical malpractice should be denied his day in court, those who bring frivolous lawsuits raise the cost of health care for everyone," argued U.S. Senator Saxby Chambliss (R-Ga.), who co-sponsored the bill with Graham.

Under the terms of the bill, dubbed the Fair Resolution of Medical Liability Disputes Act of 2009, both parties would be required to preliminary, non-binding arbitration before the lawsuit could be filed in court. If either party rejects the arbiter's decision, they can bring the claim to court. However, the loser of the lawsuit will be required to pay the legal costs for both sides.

To be clear, only the party that rejected the arbiter's decision would be required to pay for the legal fees, and that is only if the judgment is less favorable than the arbiter's decision.

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