Legislative Alert

July 29, 2005

U.S. House of Representatives Passes HEALTH Act of 2005

Yesterday, the U.S. House of Representatives passed H.R. 5, the Help Efficient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act of 2005 by a vote of 230-194. The legislation now travels to the Senate.

Provisions of H.R. 5 include:

• Limiting noneconomic damages in medical malpractice cases at $250,000;
• Limiting punitive damage awards to the greater of twice economic damages or $250,000;
• Allowing courts to restrict the payment of attorney contingency fees based on the size of the award;
• Setting a statute of limitations of three years after the date of manifestation of injury or one year after the claimant discovers the injury, with certain exceptions;
• Limiting the liability of manufacturers, distributors, suppliers, and providers of medical products that comply with Food and Drug Administration standards;
• Providing periodic payments of future medical damages.