Become A Member

 

Latest Washington Report

 

See NEC Video

 

Read Latest NEC Monthly E-News

Health Care


New England continues to be the leader in all aspects of health care. Whether in the provision of patient care, research and development or the development of our nation’s health care professionals, the importance of the medical industry to the economy and identity of the New England region cannot be overstated. In addition to the advancements made in medicine, the health care industry is a vital part of the region’s innovation economy and continues to play a significant role in the economic development of the region

The Council is unique both from a New England perspective and also because of our ability to bring together representatives from the entire health care industry to discuss and develop policy initiatives representing a broad range of interests. We are pleased to have members ranging from insurers to hospitals to community health centers to pharmaceuticals to medical device companies to doctors. Not to mention, a broad cross-section of non-health care employers in the region that are directly impacted by changes to the health care system.

In order to address the changing dynamics of health care and the volume of legislation that impacts the health care industry, the Council's Health Care Committee strategizes and develops the Council's advocacy plan for health care proposals as well as assesses the industry and its impact on the economy in terms of Medicare and other government programs.

Of particular importance to New England versus other areas of the nation are recent Medicare and Medicaid reforms and funding updates. The 2003 Medicare law and funding issues related to Medicaid have a distinct effect on the uninsured/underinsured in New England as well as on the health care industry. These programs are highly interwoven, as are the distinct facets of the New England health care economy. Other issues that the Council has worked on include: medical malpractice liability reform, disease management, FDA funding, association health plans and privacy.

Advocacy:

Education:

Medical Malpractice Liability Reform

Because New England is such a prominent leader in healthcare, the region is directly affected by legislative and regulatory initiatives that impact the industry. Medical malpractice liability reform is one such initiative that directly impacts many sectors of New England’s health care industry.

The Council has advocated in favor of passing reasonable legislation in this area, considering that failing to enact appropriate legislation would not only affect the number of doctors that choose to practice certain types of medicine (keeping in consideration that many New England doctors are traditionally associated with being involved in high-risk, cutting edge medical fields), but would also impact our world-renowned hospitals which, without reform, must continue to pay ever-increasing premiums. The region's medical device manufacturers, as well as pharmaceutical companies, have also felt the effects of being named as plaintiffs in litigation.

Specifically, the Council has advocated in favor of meaningful reforms, which include a reasonable cap on non-economic damages and the imposition of several (rather than joint) liability, which are necessary to curb the liability crisis. By enacting reasonable reforms, the practice of defensive medicine will be reduced, frivolous litigation will be curtailed, and the medical liability system will become more predictable, leading to lower healthcare costs in all aspects of the healthcare sector. As a result, both access to and quality of care will be improved.

Despite persistent advocacy on the part of the Council, the Senate has failed to invoke cloture on several different pieces of medical malpractice reform legislation. We will continue with our efforts to achieve meaningful reform.

Class Action Reform

The New England Council, a leading advocate for class action reform legislation, was proud to see the enactment of the Class Action Fairness Act into law in early 2005. The Act had been a major priority of the Council for a number of years.

This bipartisan legislation will help ensure that our legal system works more efficiently and is fairer for both plaintiffs and defendants than current law. The Class Action Fairness Act will help to reduce the instances of forum-shopping, and will help reduce the backlog of cases in overburdened state courts, while also containing provisions to keep class actions in state court if a case primarily involves matters of local concern.

This legislation contains numerous consumer protection provisions to help insure that those whom the class action system was set up to protect, the plaintiffs, actually do benefit when a court rules in their favor. One provision, in particular, would prohibit settlements where the awards are so low that plaintiffs, after paying for legal fees, actually lose money.

Asbestos Litigation Reform

The Council's Financial Services Committee has advocated on behalf of asbestos litigation reform as one of its priorities since 2003.

The Council has educated members of the delegation on the impact that expanding litigation is having on manufacturers - as well as other businesses - and insurers in the region. Any effective legislative solution must achieve "certainty and finality". In addition to the effect on businesses, without reform, there is no guarantee that those who are truly sick due to asbestos exposure will receive just compensation for their injuries.

The Council has also weighed in with select members of the delegation as they deliberated legislative solutions. Negotiations have been promising at times, and considering that Congress now appears to be nearer an agreement on this issue than it has been in the past, perhaps a final legislative solution will be reached.