Washington should listen to Texas leaders

Texas is the number one state for business relocation and has more Fortune 500 companies than any other state. Why - or better still, how?

Texas has an "open for business" sign out. Not so for policies coming out of Washington, D.C.

Tort reform is one thing which has helped Texas create more jobs and provide more certainty for businesses. But Washington has underestimated what tort reform could do for their socialized medicine plans.



Wall Street Journal - October 25, 2009

CBO UNDERESTIMATES BENEFITS OF MALPRACTICE REFORM

Earlier this month, the Congressional Budget Office (CBO) said medical-liability reforms could save about $11 billion annually. This assessment is a gross underestimate of the potential benefits of reform and was intended to give cover to congressional Democrats who say malpractice-liability costs are trifling. But a full accounting shows the benefits would be a hefty $242 billion a year, more than 10 percent of America's health expenditures. Last year alone, damage awards for medical-malpractice claims reached $5.9 billion. Adding in legal costs, underwriting costs, and administrative expenses, total med-mal tort costs were nearly three times higher — $16 billion. From 1986 through 2002, the average insurance payment for a malpractice claim more than tripled to $320,000. The average jury award for medical liability was $637,134 in 2006.

http://online.wsj.com/article/SB10001424052748703573604574491690229571588.html?mod=googlenews_wsj