A report by the Department of Health and Human Services found that expenses traceable to legal liability fears contribute between $60 billion and $108 billion a year to the total $1.6 trillion health care bill. Legislation imposing a $250,000 cap on non-economic damages would result in 4 million more people receiving health insurance, according to Congress's Joint Economic Committee.

An analysis by the Congressional Budget Office said the malpractice bill would benefit physicians and the government but would reduce private health insurance premiums a scant 0.4 percent.

"The Bush administration largely gets it backwards," said Columbia University law professor and physician William M. Sage. "They say health care is expensive because of lawsuits. I say lawsuits are expensive because of our health care system."