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By John Wagner and Matthew Mosk
From WashingtonPost.com
December 18, 2004
Gov. Robert L. Ehrlich Jr. (R) announced last night that he will
call the Maryland General Assembly into a special session in 10 days
to enact medical malpractice reforms, even though he and Democratic
leaders have yet to agree on all aspects of the complex legislation
to curb doctors' escalating insurance costs.
Ehrlich and the legislature's top Democrats said they are close to a
consensus on a package of long-term legal changes but remain divided
over one key issue: how to pay for a proposed state fund that would
help roll back an average 33 percent rate increase facing most of
the state's doctors in January.
"There is a lot of agreement here," Ehrlich said in an interview
after his announcement. "It's about 90 percent."
The special session, which will begin two days after Christmas,
would allow lawmakers to act on malpractice before Jan. 1, when the
state's largest malpractice insurer will cancel insurance policies
of doctors who have not made at least a first-quarter payment.
Ehrlich said the revenue source and mechanics for the proposed
reinsurance fund are the only major issues that remain unresolved.
"Other than that, we're there," Ehrlich said.
House Speaker Michael E. Busch (D-Anne Arundel) and Senate President
Thomas V. Mike Miller Jr. (D-Calvert) support paying for the fund by
placing a 2 percent premium tax on HMOs and managed care
organizations.
But Ehrlich has said in recent days that he would rather use
existing state resources -- a move Democrats have warned will make
balancing next year's state budget more difficult. Fiscal analysts
are projecting a $311 million shortfall.
Busch said a series of lengthy meetings in recent days convinced him
that there is hope of a resolution. "I believe the governor thinks
there's enough goodwill to get this accomplished and that the few
remaining sticking points will be brought to an agreement," Busch
said. "After all, it is the holiday season."
Miller, however, questioned the wisdom of moving forward without all
the details resolved.
"I personally feel if we don't have an agreement, we should wait,"
he said. "We still prefer the HMO tax. There's no question about
it."
The governor, who is authorized to call in the General Assembly only
under extraordinary circumstances, set a tentative schedule for the
legislature to convene for hearings on Dec. 27 and a final vote the
next day. Busch said he believes that the state's 188 lawmakers are
obligated to cancel holiday plans and come to Annapolis.
The gathering will be the first special session in Maryland since
1992, when Gov. William Donald Schaefer (D) called lawmakers to
Annapolis twice to deal with problems stemming from the 1991-92
recession. Those sessions lasted one day each, because legislators
knew exactly what they would be asked to vote on.
"Doing it this way is very unusual," Harry R. Hughes (D), who served
as governor from 1979 to 1987, said of Ehrlich's plans. "When we
called a special session on savings and loan reform, we had
everything ready to go. The bills were drawn. Leadership was in
agreement. And we got it all done in a day."
Sen. Brian E. Frosh (D-Montgomery) said he believes that the
decision to convene the legislature will put intense pressure not
only on lawmakers, but also on the governor, to forge a compromise.
Frosh headed a Senate task force that recently developed a set of
recommendations, which included an HMO tax.
"If we put a bill on his desk and he doesn't sign it, I think he's
in big trouble," Frosh said.
Efforts to reach a deal on medical malpractice legislation have
proved elusive since Ehrlich first raised hopes for a special
session this summer.
Besides disagreement over a revenue source, Ehrlich and Democratic
leaders have sparred over the extent to which the state should enact
legal changes aimed at curbing malpractice rates.
Ehrlich has advocated several reductions in payouts to plaintiffs in
medical malpractice lawsuits, a strategy embraced by doctors and
insurance companies, who blame trial lawyers for escalating jury
awards and settlements.
A handout Ehrlich presented in his final meeting with Miller and
Busch yesterday included relatively modest provisions intended to
curb damages for lost wages and medical expenses.
An existing cap of $650,000 on damages for "pain and suffering"
would remain intact for the next five years. Under current law, that
cap is scheduled to rise $15,000 a year.
Ehrlich will also ask lawmakers to reduce a cap on damages for "pain
and suffering" in wrongful-death cases, from the current level of
$1.6 million to $650,000.
Trial lawyers, whose lobbyists have been intensely involved in the
latest negotiations, have argued that such measures would hurt
victims but do little to lower doctors' insurance rates.
Maryland doctors greeted news of the session with anticipation.
"This is great news," said T. Michael Preston, executive director of
the Maryland State Medical Society. "Doctors are at a critical point
in deciding whether they will continue to be available to serve
their communities."
Medical Mutual Liability Insurance Society of Maryland, which
insures more than three-quarters of the state's private-practice
doctors, is raising rates by an average of 33 percent next year.
That would follow a 28 percent increase this year.
In addition to the malpractice legislation, lawmakers will be
required to consider whether to override Ehrlich's vetoes from their
last regular session.
At least four bills could prove contentious: a measure requiring
higher wages for workers on state contracts, a cap on state
university tuition coupled with a corporate tax to pay higher
education costs, a proposal to develop a managed care system for
people in nursing homes and a proposal to make public records more
accessible.
Del. John A. Hurson (D-Montgomery) said lawmakers are considering a
parliamentary maneuver that would allow them to delay action on the
governor's vetoes until they formally convene Jan. 12. But he was
unsure whether such a plan would pass legal muster.
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