Obama’s Brand of Tort Reform Moves Toward State Rules With Respect to Product Liability

[This article posted on May 25, 2009. It is posted within the following categories: Corporate, Pharma & Devices, Politics & The Law, via Michael Douglas, MD, MBA.]

In the march toward his overall healthcare reform plan, President Obama has reversed a George W. Bush administration regulation that gave the feds the ability to trump state governments’ decisions concerning liability with medical devices. Device makers were essentially shielded from healthcare consumer lawsuits Bush generally deemed as “frivolous” in nature. Also, Big Pharma was helped by such actions since the FDA often did not follow regulatory guidelines in implementing new drug indications.

Obama in a two-page memo wrote that federal agencies and departments could claim state law is pre-empted by federal law only when there is a well-defined legal basis. The memo stated that state laws are important because they supplement federal regulations. “State and local governments have frequently protected health, safety and environment more aggressively than has the national government,” Obama wrote.

If efforts at stopping government pre-emption give the patient more of an incentive in trusting public delivery of healthcare, at the same time cutting massive bureaucratic waste from lack of government regulation in healthcare delivery, this effort of Obama’s is to be praised. On the contrary, concerns over a flurry of patient lawsuits from Republicans should be a nonissue since Obama acknowledges the rights of individual states in this case. | LINK

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