Tort Reform

Jesse Gibson Speaking Against Issue 1 in Conway September 10th!

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Please join us as Jesse Gibson addresses the Faulkner County Democratic Party this Monday, September 10th, at 6:00 PM at Old Chicago Pizza in Conway.  We will be discussing (among other things) Issue 1, the tort "reform" provision that will be on the November ballot.  We will have general information about Issue 1 and why it is bad for Arkansans, plus ways for you to get involved and to defeat Issue 1!  If you have any questions, please contact us through our website at www.jessegibsonlaw.com or by email at jgibson@jessegibsonlaw.com.  Please view the latest Protect AR Families anti-Issue 1 ad below!

SEE YOU MONDAY!!!

Jesse Gibson Speaking Against Issue 1 in Springdale on August 19th

Please join us as Jesse Gibson addresses Ozark Indivisible this Sunday, August 19th, at 12:30 PM at Rotary Park Pavilion in Springdale.  We will be discussing (among other things) Issue 1, the tort "reform" provision that will be on the November ballot.  We will general information about Issue 1 and why it is bad for Arkansans, plus ways for you to get involved and to defeat Issue 1!  If you have any questions, please contact us through our website at www.jessegibsonlaw.com or by email at jgibson@jessegibsonlaw.com.  

SEE YOU SUNDAY!!!

More Views From the Campaign Trail

It feels like I've been everywhere this campaign season, campaigning against Issue 1, the tort "reform" proposal that will be on your ballot this coming November.  But it has been a great time, and highly successful.  I've met tons of great Arkansans who do not want a government mandated price on life enshrined in our state constitution.  I have tons of events coming up in the next few weeks, and I will be putting out that information on an almost daily basis.  So watch this space!  Until that time, here are a few recent shots from the campaign trail.  VOTE NO ON ISSUE 1!

Issue 1 Debate at Political Animals - July 19th at 11:30 - Next Level Events

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Jesse Gibson will participate in an Issue 1 debate this July 19th at 11:30, sponsored by the Political Animals Club.  The debate will be held at Next Level Events in Little Rock, Arkansas, at 1400 West Markham Street in Little Rock, Arkansas.  You can get your tickets through the Political Animals Club by clicking on the link below.  See you there!  It should be a great debate, with great information why you should vote AGAINST Issue 1 this fall.  

Issue 1 Debated at the Arkansas Bar Convention

Issue 1 was the hot topic of debate at the Arkansas Bar Convention in Hot Springs a few weeks ago.  A legislative panel addressed the topic at length, and many of the sponsors of the proposed constitutional amendment were grilled and their motivations questioned.  Click the link to read the article from the Hot Springs Sentinel Record.  Judge for yourself whether elected officials in Arkansas side with their constituents or the monied special interests and lobbyists that swarm the Capitol during the session.

Views From the Campaign Trail

Many of you are aware that I have been campaigning almost non-stop since January 1st against Issue 1, the proposed Constitutional Amendment that will be on your ballot this fall and commonly referred to as "tort reform."  I have urged voters all across the Natural State to vote AGAINST Issue 1.  I have to tell you, the response has been overwhelming.  I have met with literally thousands of voters, and the response is deafening.  The people do NOT want this proposal to pass.  The special interests and dark money forces are going to have to rely on misdirection and misinformation to be successful.  I have been encouraged by the civic engagement of the people all across our state.  I've been from Paragould to Texarkana.  From Bentonville to Dumas.  I'll write some lyrics some day and record my own version of Johnny Cash's "I've Been Everywhere."   Until then, here are some pics from the campaign trail.

VOTE AGAINST ISSUE 1!

Damage Caps in Arkansas Would Have No Impact on Physician Supply

Myth: If Arkansas does not pass damage caps, Arkansas risks losing doctors to states that have caps on non-economic damages.

Truth: Caps on damages have no impact on physician supply.

    How do we make decisions? Do we use fear or facts?  When fear and the emotions related to fear take over our decision making process, facts don’t matter.  People who understand human decision making have studied this phenomenon over and over.  And the startling truth is that fear trumps facts.  Sadly, this truth of human behavior is used by many powerful forces in our world today to manipulate public perceptions to achieve their own goals and desires.

     And when it comes to the subject of caps on damages, fear is the number one weapon being used by the medical industry and the insurance companies who profit from it.  How do they do it?  

     First of all, these powerful forces know that the need and desire for healthcare is one of the most important issues to each and every person.  When we are sick or injured, we want the best of care, we want it now, and we do not want to go bankrupt in the process of providing that care to our loved ones.  Medical care is necessary to our very survival.  And there is nothing more fearful than to think that the unexpected moment you or a loved one needs care, it will not be there.  It can create a sense of panic to think that the hospital emergency room might be closed, or that there may not be a doctor available.  

     So, these powerful forces start telling everyone that lawyers and lawsuits are the reason for all of the problems with health care; and in particular, they say that the cost of litigation is closing hospitals and causing doctors to leave the state for states that do have caps on damages.  So, if you don’t want your doctor to leave town, you need to agree to cap damages.  It really is that simple.

     The problem is that there is no truth in these claims.  None.  These powerful forces are lying to the public and betraying our trust.  And why are they doing it?  Because they profit when they are not held accountable for their actions that hurt people.

     So, let’s look at the facts.

  1. Three new studies by esteemed academics in the field of medical malpractice research confirm for the first time that “caps” lead to more medical errors, higher health costs and no increase in patient care physicians.

    The authors examined physician supply in nine states that enacted capsand compared the data to other states, like Arkansas, that does not have caps. Their research found “no evidence that cap adoption predicts an increase in total patient care physicians, in specialties that face high med mal risk (except plastic surgeons), or in rural physicians.” Specifically:

  • “[W]e find no evidence that the adoption of damage caps increased physician supply in nine new-cap states, relative to twenty states.”
  • “Consistent with this analysis, we also find no association between med mal claim rates and physician supply in state and county fixed effects regressions over 1995-2011.”
  • “Physician supply does not seem elastic to med mal risk. Thus, the states that want to attract more physicians should look elsewhere.”

2.    “Does tort reform affect physician supply? Evidence from Texas,” University of Illinois Professor of Law and Medicine David A. Hyman et al., 2015.

    The methodology of this study, which controls for every conceivable factor, is so accurate that a national “tort reform” proponent admitted changing his mind about the issue after examining his work.

  • A “core argument” behind the “tort reform” campaign was that “Texas was hemorrhaging physicians and limiting lawsuits would stop the bleeding. Consistent with this theme, the core pro-tort-reform lobbying organization was named ‘Texas Association for Patient Access’ (‘TAPA’).
  • “[T]he assertion by tort reform proponents that Texas experiences an ‘amazing turnaround’ after suffering an ‘exodus of doctors from 2001 through 2003’ is doubly false. There was neither an exodus before reform nor a dramatic increase after reform.”
  • “[T]ort reform did not solve Texas’ physician supply issues.”
  • Rural Areas. “[T]here is no evidence that tort reform materially affected the supply of DPC physicians, primary care physicians, high-risk specialists, or physicians practicing in rural areas.”

“Physician supply appears to be primarily driven by factors other than liability risk, including population trends, location of the physician’s residency, job opportunities within the physician’s specialty, lifestyle choices, and demand for medical services, including the extent to which the population is insured.”

3.    “The Empirical Effects of Tort Reform,” Cornell University Law School Professor Theodore Eisenberg, 2012.

    “If increasing premiums drive exit decisions, then programs alleviating premiums should have effects. But Smits et al. (2009) surveyed all obstetrical care providers in Oregon in 2002 and 2006. Cost of malpractice premiums was the most frequently cited reason for stopping maternity care. An Oregon subsidy program for rural physicians pays 80 percent of the professional liability premium for an ob/gyn and 60 percent of the premium for a family or general practitioner. Receiving a malpractice subsidy was not associated with continuing maternity services by rural physicians. Subsidized physicians were as likely as nonsubsidized physicians to report plans to stop providing maternity care services. And physician concerns in Oregon should be interpreted in light of the NCSC finding, described above, that this was a period of substantial decline of Oregon medical malpractice lawsuit filings.”

    4.    Dartmouth Medical School Professor of Pediatrics and Health Policy David Goodman, M.D., M.S., 2009.

    Goodman is co-investigator of the highly respected Dartmouth Atlas, which analyzes and ranks health care spending and has been the basis of a lot of discussion about why certain areas of the county are so costly. In an email to the Center for Justice & Democracy, he said: “We haven’t explicitly analyzed this, but I agree with the impression that physician supply in general bears no relationship to state tort reform, or lack thereof.”

    5.    “Young Doctors and Wish Lists: No Weekend Calls, No Beepers,” New York Times, 2004.

    “Today’s medical residents, half of them women, are choosing specialties with what experts call a ‘controllable lifestyle.’… What young doctors say they want is that ‘when they finish their shift, they don’t carry a beeper; they’re done,’ said Dr. Gregory W. Rutecki, chairman of medical education at Evanston Northwestern Healthcare, a community hospital affiliated with the Feinberg School of Medicine at Northwestern University… “Lifestyle considerations accounted for 55 percent of a doctor’s choice of specialty in 2002.”

    “…income, which accounted for only 9 percent of the weight prospective residents gave in selecting a specialty.”

Remember the great movie, “A Few Good Men” when the prosecuting attorney ended his closing argument with resounding confidence….  “These are the facts; and they are not in dispute”  The powerful forces that are behind the current tort reform movement in Arkansas hope you will disregard these facts, or choose to ignore them.  These proponents include people who have engaged in bribing a judge to reduce a verdict entered against him by a jury of the community.  These powerful forces hope to rely upon fear andignorance.  But, as we pull back the curtain, a new set of emotions should take over as we see that the people of Arkansas are being lied to; are being betrayed; and ultimately, if the Amendment passes, thrown under the bus when they or a loved one are injured and the courthouses of this State are no longer available to them for justice.  Stand with us.

    

HB 1753 - Bill to Abolish "Made Whole" Returns - More Insurance Giveaways that Harm YOU

The Arkansas General Assembly is back at it again this week, attempting to pass legislation that fattens insurance bottom lines while sticking it to their own constituents.  You might remember two years ago during the 2015 legislative session, when then-Rep. Micah Neal (R - Springdale) attempted to introduce HB 1907, which would gut what is known as the "made whole" doctrine.  Due to a groundswell of opposition, Rep. Neal tabled the bill and it died a justifiable death.  Right now, Rep. Neal has bigger legal fish to fry.

Never ones to be outdone, Rep. Charlie Collins (R-Fayetteville) and Senator Jason Rapert (R-Bigelow) have revived this bill, which is being championed and pushed by big insurance companies.  You know, good government groups like Allstate, State Farm, Shelter, and Farmers.  All those friends of the people.  These insurance companies must be struggling financially, because this bill would allow them to reach into their customers' pockets.  Here's how "made whole" works:

Oftentimes, when a person is injured by the negligence of a third party and no fault of their own, the injured party's insurance company pays benefits for the health care the injured party receives.  Makes sense, right?  You paid your premiums for health insurance in case something bad happens, and something bad happened.  That's what it's there for, right?  But we all know that insurance companies don't really like paying claims, do they?  So they often seek "subrogation," where they step into the shoes of their insured and seek to have those benefits reimbursed by the negligent third party's insurance carrier. 

The made whole doctrine provides that unless and until the injured party is "made whole," the insurance has no right of subrogation.  Unless the person who is injured has been fully paid for all of the injuries, lost wages, pain and suffering, etc, then and only then does the health insurance carrier have any right to be reimbursed or to "subrogate."  Makes sense again, right?  Been the law in Arkansas for years and years and years . . . until the 90th Arkansas General Assembly got together.

This bill would do away with the made whole doctrine and provide that the first entity that had to be paid out of any settlement or jury verdict is . . .who?  The injured party?  Nope.  Your insurance carrier.  Oh, but the health insurance carrier has to repay all the premiums they collected from you, right?  That would only be fair, right?  Nope.  They get to collect your premium payments and stick them in their pocket AND take money out of any settlement or verdict to repay them for the benefits they paid.  They get paid on both sides of the equation.  It's a classic double dip.

Why is this bad?  Several reasons.

1.  It requires ordinary folks who purchase insurance with their hard earned money to act as their insurance company's collection agency.  They get your premiums on the front end, and then you are pressed into service to get that same insurance company's money on the back end.  Didn't you pay them in the first place to cover you if something happens?  Guess what?  You now work for them and your insurance company gets a windfall.

2.  It's free to the insurance companies.  You and your lawyer pay through the nose.  The bill provides that no cost of collection or attorney's fees are payable to either the insured or their attorney.  Again, the insurance carrier hits the jackpot and you foot the bill.  

3.  Cases can never settle if this passes.  If you know you have to repay your insurance company every single dime before you ever see a dollar of any settlement or verdict, no one will ever have the impetus to settle a case.  The result will be even MORE litigation, MORE expense, and MORE uncertainty.  It will hardly ever make sense to settle a case, because it will almost universally go to your insurance carrier.  There will also be MORE dollars pumped into the insurance company's bottom lines.

4.   This applies to all kinds of insurance.  Not just health insurance.  Homeowners, MedPay or PIP, car insurance.  Everything.  All coverage.  You will now have a second job as a collection agency for every single insurance company you have coverage with if, God forbid, they actually have to pay something when you make a claim.

This is slot machine legislation.  Insurance companies take your premiums hand over fist every month and when they have to pay back, they enslave you and your lawyer to go get it back for them.  This is bad policy.  This is bad law.  Contact your legislator and urge them to vote against HB 1753.  The In-Session House number is (501) 682-6111.  The In-Session Senate number is (501) 682-2902.  Here are the sponsors' contact information.  Contact them DIRECTLY:

Rep. Charlie Collins.  (479) 283-9303.  clcollins6@cox.net

Sen. Jason Rapert.  (501) 336-0918.  jason.rapert@senate.ar.gov