First things first Care thank you for the welcome back

, I posted the article to show you that the idea of promoting competetion to drive down costs is not a new one and is actually a good idea. However, the mechanics of it when it comes to taking away deductions if my post led you to believe I agreed with that part of it you would be wrong on that score and if it did you have my apologies. As for other post on caps on liability awards thats kind of a sticky area.
A divided Texas Supreme Court found March 6 that an exception to the states malpractice damages cap that allows further recovery when a liability insurer negligently fails to settle claims, applies only to insurers and does not apply to physicians.
The high court explained that, under the Medical Liability and Insurance Improvement Act of 1977 (Act), one provision caps the liability of physicians above a fixed amount, and a second provision creates an exception to this cap when the physicians insurer has negligently failed to settle a claim within the limits of the physicians liability policy.
Texas high court says liability cap applies to physicians, not insurers - - Medical Economics | Practice Management
The Ohio Supreme Court this week upheld the constitutionality of a state law that limits the amount of damages that may be awarded to injured persons who win product-liability lawsuits.
In a 5-2 opinion, a majority of the Court ruled that caps on non-economic and punitive damages do not violate a right to jury, due process, equal protection, or the single subject rule of the Ohio Constitution.
The law in question was enacted by the Ohio legislature in 2004 to address concerns of the business community about excessive product liability and general business lawsuits. The business groups argued that Ohio's liability climate was detrimental to Ohio's economic vitality.
The Supreme Court's decision in Arbino v. Johnson & Johnson affects cases involving allegedly defective products and medications, as well as wrongful-death, injury and employment-discrimination claims. It does not apply to medical-malpractice lawsuits, although the General Assembly also has capped damages in those cases.
"While this opinion does not relate directly to the OSMA-championed medical liability reform, it is notable that the Ohio Supreme Court deferred to the General Assembly in upholding the business product liability tort reform package," said Tim Maglione, Senior Director of Government Relations for the Ohio State Medical Association.
"The Court's reasoning in this case should bolster the argument that medical liability caps are also constitutional," Maglione added
Cap On Product Liability Lawsuits Upheld By The Ohio Supreme Court - 12/28/07 - Ohio State Medical Association
What I'm sure will happen in a case like this is you will have a sure fire constitutional fight on your hands with the trial lawyers on one side and the Doctors on the other. It appears though with the exception if Oregon from what I can see that these caps state by state seem to found constitutional. It does appear that exceptions have been made in some cases. From my reading this is a state issue, but my suggestion was that under the commerce clause where an insurance provider who provides services state to state congress does have the authority to regulate them as they see fit.