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House Passes Giveaway to Pharmaceutical and Insurance Industries

H.R. 5 Protects Vioxx, Not Doctors or Patients

(Thursday, July 28, 2005) - Today the U.S. House of Representatives passed a medical malpractice bill (H.R. 5) that does nothing to help doctors with high insurance rates but gives sweeping liability protections to drug companies that knowingly market deadly drugs like Vioxx.

"Today, the Congress showed once again where its true priorities lie with the big insurance and pharmaceutical companies and their well-heeled CEOs," said ATLA President Ken Suggs.

H.R. 5 provides sweeping immunity to the pharmaceutical industry and endangers the public health.

Even as the first trial of a Vioxx victim is bringing to light evidence that Merck may have knowingly marketed a dangerous and deadly drug, the drug companies would be given virtual immunity from punitive damages under this bill, and have their total liability for serious injury or wrongful death capped at $250,000.

"The protection this bill gives the prescription drug industry is absolutely ridiculous, especially when these companies have proven they don't give a hoot about people's safety," said Congressman Marion Berry, a Democratic House member and pharmacist who voted against the bill.

"All this legislation does is take responsibility away from the business community and allow dangerous prescription drug companies to make money like gangbusters. It mystifies me that people could vote for a bill that puts their own family in harms way," he continued.

"As Vioxx has shown, these big drug companies will not police themselves—we need the civil justice system to ensure that they are held accountable if they endanger the public's health," added Suggs.

H.R. 5 does nothing to stop insurance industry price-gouging.

Study after study has confirmed that while the insurance industry is raising premiums for doctors at a record pace, the amount insurance companies pay out for lawsuits has remained stable. But H.R. 5 has not one word about insurance reform or any provision to require the insurance industry to stop the price-gouging and lower rates.

"The insurance industry is price-gouging doctors and lying to the public all to justify limiting the rights of victims so that the industry can add to its already record-setting bottom line," said Suggs.

Even supporters of H.R. 5 could not defend the bill—House leaders refused to hold a hearing, limited floor debate, and refused to allow any amendments or substitutes.

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As the world's largest trial bar, ATLA promotes justice and fairness for injured persons, defends the constitutional right to trial by jury, and strengthens the civil justice system through education and disclosure of information critical to public health and safety. With 60,000 members worldwide, ATLA provides lawyers with the information and professional assistance they need to serve clients successfully and protect the democratic values of the civil justice system.