The American Medical Association and 90 other medical groups have sent a letter to the Treasury Department opposing a policy under consideration that would allow trial lawyers to deduct litigation expenses from their taxes in certain instances.
“Changing the tax policy to allow trial attorneys to deduct court costs and other expenses would cost taxpayers $1.5 billion and increase the cost of healthcare in our nation,” said J. James Rohack, the AMA's immediate past president, in a written statement.
According to the organizations, the policy would create new incentives for trial lawyers to file more lawsuits against physicians and other healthcare providers. “Even though a substantial majority of claims are dropped or decided in favor of physicians, the cost of defending against meritless claims averages over $22,000,” leading to increased costs for doctors and patients, the letter stated.
This is money that could otherwise be spent on expanding coverage to the uninsured, the groups noted.
“Instead, the AMA supports proven medical liability reforms already working in California and Texas,” which have imposed quarter-million-dollar caps on non-economic damages as well as testing for innovative reform models, to reduce healthcare costs, Rohack stated.
See the letter (PDF).
