More good news in the health care law. Yeah, right.
There was an effort made by some in Congress, both Republicans and Democrats, to get tort reform into the bill to prevent frivolous lawsuits that have constantly driven up costs for malpractice insurance for doctors.
It now looks like the new law will allow lawyers to file big-ticket lawsuits against states over Medicaid access and wait times.
States fear that five words in Obama health law will open door to lawsuitsTucked away on page 466 of President Obama’s 2,704-page health-care bill is a provision that changes the definition of “medical assistance,” the term describing what states are required to provide to Medicaid recipients.
States have in the past been required to provide payment for services to physicians. Now, under the new definition, states will be liable for ensuring provision of “the care and services themselves.”
In other words, states are legally on the hook not only to ensure that Medicaid recipients are paid for, but that they’re seen by a doctor.
Medicaid recipients have found it increasingly difficult to be seen by doctors, as states in extreme economic duress have cut payment rates. …
“With the expanded definition, it leaves every state vulnerable to a new wave of lawsuits any time someone cannot access a service, even if that service is limited by virtue of the rates we pay,” said Alan Levine, Louisiana’s secretary of health and hospitals, in a recent memo prepared for fellow state government officials.
Levine wrote: “DHH cannot estimate the cost of this, but it is not even worth estimating. It will be substantial.”
As more doctors opt out of Medicaid systems (Walgreens pharmacy has already said that they are not taking anymore Medicaid prescriptions), wait times will get longer. There could very well be class-action lawsuits filed against states over access. This would allow lawyers to get courts to bypass voters and have courts set rates instead.
This scenario also doesn't take into consideration that the federal government cannot force states into debt with increased demands on their roles in Medicaid. There is a constitutional challenge there -- another 10th Amendment issue. Most of the states are in debt individually and will not be able to provide any more services than they are now.