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AMA, 90 Medical Organizations Oppose Tax Changes that Encourage More Lawsuits

September 2, 2010

Opposing any changes to the tax code that would encourage trial attorneys to file more lawsuits and add to the overall cost of health care, the American Medical Association (AMA) and 90 medical organizations sent a letter to the U.S. Treasury Department. The organizations oppose a policy under consideration that would allow trial attorneys nationwide to deduct litigation expenses from their taxes in certain cases. "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 health care in our nation," said J. James Rohack, M.D., AMA Immediate Past-President. "This change would encourage trial attorneys to file more lawsuits." The federal government should not create new incentives for attorneys to bring lawsuits. A recent report by the AMA found 95 medical liability claims filed for every 100 physicians. Currently, 65 percent of medical liability claims are dropped or dismissed. Average defense costs range up to more than $100,000 and take physicians away from patient care. Full release.

Posted by Admin at 04:07 PM

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