The Congressional Budget Office says tort reform will result in the reduction of health care costs in both direct and indirect ways.

In a letter to Rep. Bruce Braley (D. – Iowa), the CBO cited CBO concluded that tort reform would lower costs directly, by reducing malpractice insurance premiums, settlements, and awards, and indirectly, by reducing “defensive medicine” practices by providers. Braley had written the CBO asking about the potential impact of tort reform on the quality of health care and on health outcomes.

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