Proposed Rule2023-23013
Medical Malpractice Claims by Members of the Uniformed Services
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 20, 2023
Issuing agencies
Defense Department
Abstract
The Department of Defense (DoD) proposes to amend the regulations governing medical malpractice claims by members of the uniformed services to adjust and update certain portions of the regulation related to calculation of damages. Currently, total potential damages are reduced by offsetting most of the compensation otherwise provided or expected to be provided by DoD or the Department of Veterans Affairs (VA) for the same harm that is the subject of the medical malpractice claim. The amendments would apply offsets to economic damages only. The amendments would also clarify when future lost wages may be awarded.
Full Text
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<title>Federal Register, Volume 88 Issue 202 (Friday, October 20, 2023)</title>
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[Federal Register Volume 88, Number 202 (Friday, October 20, 2023)]
[Proposed Rules]
[Pages 72412-72415]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-23013]
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DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 45
[Docket ID: DOD-2023-OS-0065]
RIN 0790-AL70
Medical Malpractice Claims by Members of the Uniformed Services
AGENCY: Department of Defense Office of General Counsel, DoD.
ACTION: Proposed rule with request for comments.
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SUMMARY: The Department of Defense (DoD) proposes to amend the
regulations governing medical malpractice claims by members of the
uniformed services to adjust and update certain portions of the
regulation related to calculation of damages. Currently, total
potential damages are reduced by offsetting most of the compensation
otherwise provided or expected to be provided by DoD or the Department
of Veterans Affairs (VA) for the same harm that is the subject of the
medical malpractice claim. The amendments would apply offsets to
economic damages only. The amendments would also clarify when future
lost wages may be awarded.
DATES: Comments will be accepted on or before December 19, 2023. The
changes in the proposed rule would apply to claims received by DoD on
or after the date the final rule is published in the Federal Register
and to claims pending before DoD on that date.
ADDRESSES: You may submit comments, identified by docket number and/or
regulatory identifier number (RIN) and title, by any of the following
methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments.
<bullet> Mail: Department of Defense, Office of the Assistant to
the Secretary of Defense for Privacy, Civil Liberties, and
Transparency, Regulatory Directorate, 4800 Mark Center Drive, Attn:
Mailbox 24, Suite 08D09, Alexandria, VA 22350-1700.
Instructions: All submissions received must include the agency name
and docket number or RIN for this Federal Register document. The
general policy for comments and other submissions from members of the
public is to make these submissions available for public viewing on the
internet at <a href="http://www.regulations.gov">http://www.regulations.gov</a> as they are received without
change, including any personal identifiers or contact information.
FOR FURTHER INFORMATION CONTACT: Melissa D. Walters, (703) 681-6027.
SUPPLEMENTARY INFORMATION:
I. Background
Section 2733a of title 10, United States Code, allows members of
the uniformed services or their authorized representatives to file
claims, and the Secretary of Defense to pay such claims, for personal
injury or death caused by a DoD health care provider in a covered
military medical treatment facility, as defined in that section. DoD
published an interim final rule to establish uniform standards and
procedures for adjudicating these claims on June 17, 2021 (86 FR 32194)
and a final rule on August 26, 2022 (87 FR 52446).
II. Explanation of Changes With This Rule
The proposed amendments to 32 CFR 45.11 would apply offsets for
payments made by the U.S. Government to economic damages only. Under
the current version of 32 CFR 45.11, total potential damages are
reduced by offsetting most of the compensation otherwise provided or
expected to be provided by DoD or VA for the same harm that is the
subject of the medical malpractice claim.
The amendments would also clarify that future lost wages may be
awarded: (1) until the time DoD determines that the claimant is, or is
expected to be, medically rehabilitated and able to resume employment;
(2) in cases of permanent incapacitation, until expiration of the
claimant's work-life expectancy; or (3) in cases of death, until the
expiration of the claimant's work-life expectancy, after deducting for
the claimant's personal consumption.
III. Section-by-Section Discussion
The following is a section-by-section overview of the amendments in
this rulemaking.
Section 45.1--Purpose of this part. Proposed Sec. 45.1(b)
eliminates a reference to the total value of compensation the claimant
is expected to receive under a comprehensive system of compensation for
death or disability being subject to offset. Instead, it generally
refers to Sec. 45.11, which relates to offsets.
Section 45.9--Calculation of damages: economic damages. Proposed
Sec. 45.9(b)(4) changes ``loss of earning capacity'' to ``future lost
earnings'' to parallel ``past lost earnings'' in Sec. 45.9(b)(3).
Proposed Sec. 45.9(b)(4) includes a change to account for future lost
earnings until the time DoD determines that the claimant is, or is
expected to be, medically rehabilitated and able to resume employment
or, in cases of permanent incapacitation, until expiration of the
claimant's work-life expectancy. Future lost earnings must be
substantiated by appropriate documentation and claimants have an
obligation to mitigate damages.
Proposed Sec. 45.9(d) is added to indicate that an injury or
condition does not result in lost earnings for purposes of this
regulation if the lost earnings are the result of disability
discrimination. Lost earnings stemming from disability discrimination
may be settled and paid under other provisions of law and therefore are
not compensable under this regulation.
For example, if a claimant suffers severe facial disfigurement as a
result of medical malpractice but because a potential employer
discriminates against that claimant for fear of negative reactions to
the disfigurement, the claimant's redress for the inability to obtain
employment would be under provisions of law relating to employment
discrimination and not under 10 U.S.C. 2733a.
Section 45.10--Calculation of damages: non-economic damages.
Proposed Sec. 45.10(a) includes language currently in Sec. 45.10(b)
regarding proof of a claimant's non-economic damages that DoD may
require. This amendment keeps information relating to the proof of non-
economic damages together for clarity.
Proposed Sec. 45.10(b) consolidates the description of the
elements of non-economic damages into one paragraph. This eliminates
confusion that might arise from separating conscious pain and suffering
from disfigurement, as a single amount is awarded for all non-economic
damages.
Section 45.10(c) removes the amount of the cap on non-economic
damages from the regulatory text. This change eliminates the need for
publication of conforming administrative amendments to the regulation
each time updates to the cap amount are published via Federal Register
notice.
Section 45.11--Calculation of damages: offsets for DoD and VA
Government compensation. In the current version of the regulation,
total potential damages calculated under this part, both economic and
non-economic, are reduced by offsetting most of the compensation
otherwise provided, or expected to be provided, by DoD or VA for the
same harm that is the subject of the medical malpractice claim. Under
the proposed amendments, offsets are applied to economic damages only.
Proposed Sec. 45.11(a) states that total potential economic
damages calculated under this part are reduced by offsetting
[[Page 72413]]
most of the compensation otherwise provided, or expected to be
provided, by DoD or VA for the same harm that is the subject of the
medical malpractice claim. This is a change from the current rule,
which makes all offsets from the total potential economic and non-
economic damages. Compensation received from DoD or VA that does not
relate to the malpractice is still excluded from the offset. Under
Sec. 45.4(c), claimants have the burden of substantiating their claim
by a preponderance of the evidence and, under Sec. Sec. 45.9(a) and
45.10(a), the burden of proving the amount of damages by a
preponderance of the evidence. This change makes it clear that DoD has
the burden of establishing the applicability and amount of any offsets
from the amount of damages otherwise payable to the claimant.
Proposed Sec. 45.11(c), formerly Sec. 45.11(d) in the current
regulation, states that present value is used to calculate offsets
against economic damages. This change is necessary with the proposed
change to offset economic damages only. An award of future lost
earnings and retirement benefits is reduced to present value, so the
offsetting compensation for future lost earnings and retirement
benefits must also be reduced to present value.
Proposed Sec. 45.11(d) contains the same language as Sec.
45.11(c) in the current regulation, with the addition of language from
Sec. 45.11(a) in the current regulation stating that claimants must
provide information not available to DoD, but requested by DoD, for the
purpose of determining offsets.
Proposed Sec. 45.11(e) combines what is currently in Sec. Sec.
45.11(e) through (g) in the current regulation. Proposed Sec. 45.11(e)
removes the reference to pay and allowances while a member remains on
active duty, or in an active status, as an offset because the member
receiving these pay and allowances has not lost earnings.
IV. Regulatory Analysis
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review''
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health, and safety effects; distribution of impacts; and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, of reducing costs, of harmonizing rules, and of
promoting flexibility. This proposed rule has been determined to be a
significant regulatory action, although not economically significant.
Accordingly, it has been reviewed by the Office of Management and
Budget as required by these Executive orders.
Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601 et
seq.)
The General Counsel of the Department of Defense certified that
this proposed rule is not subject to the Regulatory Flexibility Act (5
U.S.C. 601) because it would not, if promulgated, have a significant
economic impact on a substantial number of small entities. Therefore,
the Regulatory Flexibility Act, as amended, does not require a
regulatory flexibility analysis.
Section 202, Public Law 104-4, ``Unfunded Mandates Reform Act''
Section 202 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1532) requires agencies to assess anticipated costs and benefits before
issuing any rule whose mandates require non-Federal spending in any one
year of $100 million in 1995 dollars, updated annually for inflation.
This proposed rule does not mandate any requirements for State, local,
or tribal governments, nor affect private sector costs.
Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)
It has been determined that this proposed rule does not impose new
reporting or recordkeeping requirements under the Paperwork Reduction
Act of 1995.
Executive Order 13132, ``Federalism''
Executive Order 13132 establishes certain requirements that an
agency must meet when it promulgates a proposed rule (and subsequent
final rule) that imposes substantial direct requirement costs on State
and local governments, preempts State law, or otherwise has federalism
implications. This proposed rule does not have a substantial effect on
State and local governments.
Executive Order 13175, ``Consultation and Coordination With Indian
Tribal Governments''
Executive Order 13175 establishes certain requirements that an
agency must meet when it promulgates a proposed rule (and subsequent
final rule) that imposes substantial direct compliance costs on one or
more Indian tribes, preempts tribal law, or affects the distribution of
power and responsibilities between the Federal Government and Indian
tribes. This rulemaking will not have a substantial effect on Indian
tribal governments.
V. Impact of This Regulation
a. Summary
The proposed amendments adjust and update certain portions of the
regulation related to calculation of damages. The amendments would
apply offsets to economic damages only. The amendments would also
clarify when future lost wages may be awarded.
b. Affected Population
At the end of Fiscal Year 2022, there were approximately 1,410,000
Active Duty Service members, and 440,000 Reserve and National Guard
members eligible for DoD healthcare benefits. These uniformed Service
members will be able to file claims with DoD alleging malpractice from
care at DoD military medical treatment facilities as defined in section
2733a.
c. Costs
DoD does not estimate that any additional claims will be filed as a
result of the proposed amendments to the regulation. Since the
enactment of section 2733a, individuals who believe they have been
subjected to malpractice have filed claims involving injuries ranging
from minor injuries to death, regardless of the potential application
of offsets.
d. Transfers
Regardless of the number of claims in which malpractice occurred,
the only claims in which damages will be awarded are those which exceed
the offsets for any payment to be made. The proposed changes solely
impact non-economic damages. No changes are proposed that would impact
offsets from economic damages.
Based on claims adjudicated under this part in 2021 and 2022, four
claims were adjudicated in which offsets were applied. The outcome
would have been different in only one of these claims had the proposed
amendments been in effect. In that one claim, $200,000 of the potential
non-economic damages was subject to offset. This $200,000 would not
have been offset from non-economic damages under the proposed changes.
Claims in 2021 and 2022 may not necessarily be representative of
claims in future years. Claims were accepted beginning January 1, 2020,
but could only begin to be adjudicated beginning on July 17, 2021, when
the Interim Final Rule became effective. The first claims adjudicated
under this new process
[[Page 72414]]
were claims that did not require a decision on the merits of whether
malpractice occurred, such as claims that were denied because the
alleged malpractice fell outside the statute of limitations in 10
U.S.C. 2733a(b)(4). Just as with claim resolution processes involving
non-Service member claims, more complex claims, which tend to involve
higher amounts of damages, require time for review. Since Service
members' claims have only been able to be adjudicated since July 17,
2021, more complex claims may still be under adjudication, and the one
claim that would have had a different outcome in 2021 and 2022 may not
be representative of the number of claims that would be impacted going
forward.
Taking the limited information into account, DoD estimates that the
changes to the regulation would affect 2 claims per year, instead of
basing its estimate on the one historical claim that would have been
impacted. The average of the non-economic damages at issue in the four
claims in which offsets were applied was $337,500. Assuming $337,500
additional would be paid in 2 claims, the estimated total cost to the
government therefore would be $675,000. Of this, the first $100,000 of
each of the two claims would be paid by DoD, with the remainder to be
paid by the Treasury.
e. Benefits
The proposed changes to the regulation will allow some Service
members to receive compensation for non-economic damages that they
would not have been able to receive under the current regulation. The
changes afford some Service members additional compensation in light of
the non-economic harms they have experienced as a result of
malpractice.
List of Subjects in 32 CFR Part 45
Medical, Malpractice, Claims, Uniformed Services.
Accordingly, the Department of Defense proposes to amend 32 CFR
part 45 to read as follows:
PART 45--MEDICAL MALPRACTICE CLAIMS BY MEMBERS OF THE UNIFORMED
SERVICES
0
1. The Authority for part 45 continues to read as follows:
Authority: 10 U.S.C. 2733a.
0
2. Amend Sec. 45.1 by revising paragraph (b) to read as follows:
Sec. 45.1 Purpose of this part.
* * * * *
(b) Relationship to military and veterans' compensation programs.
Federal law provides a comprehensive system of compensation for
military members and their families in cases of death or disability
incurred in military service. This system applies to all causes of
death or disability incurred in service, whether due to combat
injuries, training mishaps, motor vehicle accidents, naturally
occurring illnesses, or household events, with limited exceptions
(e.g., when the member is absent without leave or the injury is due to
the member's intentional misconduct or willful negligence). This
comprehensive compensation system applies to cases of personal injury
or death caused by medical malpractice incurred in service as it does
to all other causes. This part provides for the possibility of separate
compensation in certain cases of medical malpractice but in no other
type of case. A medical malpractice claim under this part will have no
effect on any other compensation the member or the member's family is
entitled to under the comprehensive compensation system applicable to
all members. However, if the U.S. government makes a payment for harm
caused by malpractice, this payment reduces the potential damages under
this part as provided in Sec. 45.11.
* * * * *
0
3. Amend Sec. 45.9 by revising paragraph (b)(4) and adding paragraph
(d) to read as follows:
Sec. 45.9 Calculation of damages: economic damages.
* * * * *
(b) * * *
(4) Future lost earnings:
(i) Until DoD determines that the claimant is, or is expected to
be, medically rehabilitated and able to resume employment;
(ii) In cases of permanent incapacitation, until expiration of the
claimant's work-life expectancy; or
(iii) In cases of death, until the expiration of the claimant's
work-life expectancy, after deducting for the claimant's personal
consumption.
(iv) Future lost earnings must be substantiated by appropriate
documentation and claimants have an obligation to mitigate damages.
(v) In addition, loss of retirement benefits is compensable and
similarly discounted after appropriate deductions. Estimates for future
lost earnings and retirement benefits must be discounted to present
value.
* * * * *
(d) Disability discrimination. An injury or condition does not
result in lost earnings for purposes of, and is not compensable under,
this regulation if the lost earnings stem from disability
discrimination, which may be settled and paid under other provisions of
law.
* * * * *
0
4. Amend Sec. 45.10 by revising paragraphs (a) through (c) to read as
follows:
Sec. 45.10 Calculation of damages: non-economic damages.
(a) In general. Non-economic damages are one component of a
potential damages award. The claimant has the burden of proof on the
amount of non-economic damages by a preponderance of evidence. DoD may
request an interview of or statement from the claimant or other person
with primary knowledge of the claimant. DoD may also require medical
statements documenting the claimant's condition and, in cases of
disfigurement, photographs documenting the claimant's condition.
(b) Elements of non-economic damages. Non-economic damages include
pain and suffering; physical discomfort; mental and emotional trauma or
distress; loss of enjoyment of life; physical disfigurement resulting
from an injury to a member that causes diminishment of beauty or
symmetry of appearance rendering the member unsightly, misshapen,
imperfect, or deformed; and the inability to perform daily activities
that one performed prior to injury, such as recreational activities.
Such damages are compensable as part of non-economic damages.
(c) Cap on non-economic damages. In any claim under this part,
total non-economic damages may not exceed a cap amount published by DoD
via a Federal Register notice. DoD will periodically publish updates to
this cap amount via Federal Register notices, consistent with changes
in prevailing amounts in the majority of the States with non-economic
damages caps.
* * * * *
0
5. Amend Sec. 45.11 by:
0
a. Revising paragraph (a);
0
b. Redesignating paragraph (c) and (d) as paragraphs (d) and (c),
respectively;
0
c. Revising the first sentence in the newly redesignated paragraph (c);
0
d. Adding a sentence to the end of the newly redesignated paragraph
(d);
0
e. Revising paragraph (e); and
0
f. Removing paragraphs (f) and (g).
The revisions and additions read as follows:
Sec. 45.11 Calculation of damages: offsets for DoD and VA Government
compensation.
(a) In general. Total potential economic damages calculated under
this part are reduced by offsetting most of the compensation otherwise
provided or expected to be provided by DoD or VA
[[Page 72415]]
for the same harm that is the subject of the medical malpractice claim.
DoD has the burden to establish the applicability and amount of any
offsets.
* * * * *
(c) Present value of future payments and benefits. In determining
offsets under this section from economic damages, DoD will use the
present value of future payments and benefits. * * *
(d) Information considered. * * * Claimants must provide
information not available to DoD, but requested by DoD, for the purpose
of determining offsets.
(e) Benefits and payments that may be considered as potential
offsets. The general rule is that potential damages calculated under
this part may be offset only by DoD or VA payments and benefits that
are primarily funded by Government appropriations. Potential damages
calculated under this part are not offset by U.S. Government payments
and benefits that are substantially funded by the military member. The
following examples are provided for illustrative purposes only, are not
all-inclusive, and are subject to adjustment as appropriate.
(1) The following DoD and VA payments and benefits are primarily
funded from Government appropriations and will be offset:
(i) Disability retired pay in the case of retirement due to the
disability caused by the alleged medical malpractice.
(ii) Disability severance pay in the case of non-retirement
disability separation caused by the alleged medical malpractice.
(iii) Incapacitation pay.
(iv) Involuntary and voluntary separation pays and incentives.
(v) Death gratuity.
(vi) Housing allowance continuation.
(vii) Survivor Benefit Plan.
(vii) VA disability compensation, to include Special Monthly
Compensation, attributable to the disability resulting from the
malpractice.
(ix) VA Dependency and Indemnity Compensation, attributable to the
disability resulting from the malpractice.
(x) Special Survivor Indemnity Allowance.
(xi) Special Compensation for Assistance with Activities of Daily
Living.
(xii) Program of Comprehensive Assistance for Family Caregivers.
(xiii) Fry Scholarship.
(xiv) TRICARE coverage, including TRICARE-for-Life, for a
disability retiree, family, or survivors. Future TRICARE coverage is
part of the Government's compensation package for a disability retiree
or survivor.
(2) The following U.S. Government payments and benefits are
substantially funded by the military members or are otherwise generally
not eligible for consideration as potential offsets:
(i) Servicemembers Group Life Insurance.
(ii) Traumatic Servicemembers Group Life Insurance.
(iii) Social Security disability benefits.
(iv) Social Security survivor benefits.
(v) Prior Government contributions to a Thrift Savings Plan.
(vi) Commissary, exchange, and morale, welfare, and recreation
facility access.
(vii) Value of legal assistance and other services provided by DoD.
(viii) Medical care provided while in active service or in an
active status prior to death, retirement, or separation.
Dated: October 12, 2023.
Patricia L. Toppings,
OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2023-23013 Filed 10-19-23; 8:45 am]
BILLING CODE 6001-FR-P
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