Oklahoma State Representative Jason W. Murphey (R-Guthrie) has introduced legislation intended to lower medical costs by providing incentive for insurers to write “Negative Outcomes” insurance policies. The bill also seeks to help ensure that patients are properly and quickly compensated for medical malpractice.
In the announcement, Murphey said Negative Outcomes insurance is a unique approach to medical tort reform and would provide a free market alternative to the crises faced by physicians forced to deal with the high cost of medical malpractice insurance.
If passed, House Bill 1018, authored by Murphey, would allow a tax deduction for patients who purchase Negative Outcomes insurance. In the event of medical malpractice, the insurance would allow a patient to make an immediate claim for recovery of damages. It would eliminate the need to become involved in protracted legal action against a physician, and leave the decision to litigate with the insurance company. A patient could receive a settlement directly and avoid costly legal fees.
“I think this legislation would be a significant step in reducing incentive for those promoting ‘jackpot justice’ legal actions against Oklahoma physicians,” Murphey said.
Murphey credited the idea to U.S. Congressman Ron Paul, who sponsored the legislation in Washington and to Oklahoma House District 90 State Representative Charles Key.
“Representative Key brought the issue to my attention and encouraged me to move it forward,” Murphey said. “I was impressed by the innovative nature of the concept and look forward to advocating for this and other reform-minded issues.”
Source: Oklahoma House of Representatives
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