Question

Tort reform; does it reduce healthcare costs? will need six good examples and the pros and cons of it.

Answer 1

Tort reforms are the laws which mitigate or limit the ability of patients or victims to file a lawsuit against the medical practitioners or other medical staffs so to reduce the insurance premiums of medical malpractices. The laws also reduce the amount which may be recovered by the victim from the practitioner.

Doee it reduce healthcare costs :-

Yes, tort reforms reduce healthcare costs. From various studies it can be said that tort reforms impact the medical costs at some extent. The cost of the malpractice damages and other premiums takes nearly 2% of the total healthcare cost. Although estimating the exact cost of healthcareis difficult but healthcare providers can reduce the cost by reducing the cost of the care. That means, with the help of tort reforms, providers can eliminate the cost of excessive care for the patients so to ultimately reduce the healthcare cost. This excessive care is increased by the providers may be because they are too sensitive of litigation. Besides, tort reforms helps to reduce the cost of medical errors and also encourages the healthcare to engage in profitable treatment despite of it's risk.

Examples :-

Tort reforms includes mediation and arbitration where both mediator and arbitrator becomes the third part to solve the matter with negotiation between first and second party. It also establish a "secondary insurance" which covers and protect the primary insurance's judgement.

Pros and cons of tort reforms :-

Pros :-

1. Tort reforms limits or reduce the punitive damange costs.
2. Juries can be able to focus on the main case instead of the rewards or recovery amount.
3. The defendant has the right to pay the recovery amount in installments insead of paying the entire amount at the same time.
4. It also limits unnecessary attorney's fees which is actually reasonable.

Cons :-

1. Due to the less amount of recovery, the defendant may get the chance to harm or injure more.
2. It lengthens the time to pay for the recovery amount.
3. Tort reforms limits it's services to only some sector such as medical healthcare and manufacturing.
4. It may protect the medical practitioners from being sued even they did wrong.

Hope this helps :)