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HHS Secretary gently weaves in tort reform as part of healthcare reform

(NEWS) The tort litigation process of this land is close to potentially being overhauled. And you may not have even noticed.

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Happenings on The Hill

Seven far-reaching bills, supported by the Republicans and vehemently opposed by consumer groups, are now making its way through Congress.

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Colloquially known as “tort reform,” with Mr. Trump in the White House, the prospects of enacting business-friendly litigation looks promising.

But we are short on details.

Tort reform

In his joint address to Congress, President Trump specifically mentioned his support for measures to “implement legal reforms that protect patients and doctors from unnecessary costs that drive up the price of insurance.”

This was a direct reference to the Protecting Access to Care Act (H.R. 1215), which caps medical malpractice awards, non-economic damages at $250,000.

In theory, the supports of reform argue that by making liability laws less complex, and cutting out frivolous lawsuits, medical costs shall come down.

Gears in motion

Last month, the Senate confirmed Rep. Thomas Price (R-GA) to head the Department of Health and Human Services.

A staunch opponent of Obamacare, Mr. Price, a former orthopedic surgeon, is expected to implement the President’s reform plan.

In a March 2nd speech accompanying Vice President Mike Pence, Secretary Price called tort reform “defensive medicine” which went wholly unnoticed.

Rockin’ the boat

Critics immediately pointed out two contractions. First, they contend, that there is simply no evidence that liability restrictions lower insurance costs.

Secondly, President Trump’s support for tort reform directly puts him at odds with many conservatives who object to Congress interfering with tort laws, a traditional domain of individual states.

What are implications beyond healthcare?

Anything for the agenda

Does medical liability reform imply a broader civil justice reform agenda?

Will the President approve tort reform bills when they reach his desk?

Joanne Doroshow at the Center for Justice & Democracy in New York, advised against that interpretation.(https://bol.bna.com/trump-seen-as-supportive-of-business-backed-litigation-bills/). Medical malpractice, she said, has “nothing to do with the other bills that exonerate misconduct by large industries, about which he said nothing.”

He gets a bill, she gets a bill, EVERYONE GETS A BILL

A quick glance at the bills, five of them currently in the House, certainly establish their diversity, and non-medical nature.

The bills propose changes that include: provisions to rewrite class-action practice; support defendants resisting cases in plaintiff-friendly state courts; punish attorneys filing bogus claims; seek limits on settlements by the EPA and DOJ; and impose stringent disclosure requirements on asbestos victims claiming compensation.

The President has been entirely silent on these six bills in Congress right now.

Other than President Trump’s medical liability reform comments, and one oblique reference to asbestos, there has been no other speeches, interviews or comments to gauge the President’s views.

Gettin turnt up for tort

Supporters of tort reform, however, seem to be charged up. They are undeterred by President Trump’s specific mention of “medical” litigation reform.

Sherman Joyce, president of the American Tort Reform Association, told Bloomberg, “we’ll eagerly make the case to the White House and fence-sitters in Congress that, just as meritless litigation makes health care less affordable and accessible, it also undermines economic growth and job creation — two of President Trump’s top priorities.”

However, nothing is certain.

All six bills differ in scope and while they are expected to pass the House, uncertainty in the Senate remains high, where democrats are expected to filibuster some (if not all) of the bills.

Why has President Trump been silent?

A possible explanation is this: because civil litigation puts his administration at odds with its own policy stance.

Corporate America has always been bent on limiting class actions and push arbitration over jury trials.

PresidentTrump is from the business world, and being a subject of many civil lawsuits himself, is perhaps in line with big business’s agenda.

But such a position directly betrays the rights of grassroots America, his biggest supporters. Curtailing ‘trial by jury’ or the right to take a corporation to court will prove unpopular.

Moreover, business-backed litigation would limit the power of states to go after big businesses—another conflict of policy for President Trump, who is a big supporter of strong state powers, as reiterated in the Congress speech.

Huge repercussions

As President Trump likes to often say, this is going to be huge.

What is at stake is the American citizen’s right to take business entities to court (the 7th Amendment) or, alternatively, the freedom from frivolous litigation, depending on where you stand on the issue. Click To TweetMuch remains to be resolved in the coming months. For now, all eyes should be on the House floor.

#Tort

Barnil is a Staff Writer at The American Genius. With a Master's Degree in International Relations, Barnil is a Research Assistant at UT, Austin. When he hikes, he falls. When he swims, he sinks. When he drives, others honk. But when he writes, people read.

Business News

Asking the wrong questions can ruin your job opportunity

(BUSINESS NEWS) An HR expert discusses the best (and worst) questions she’s experienced during candidate interviews. it’s best to learn from others mistakes.

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When talking to hiring managers outside of an interview setting, I always find myself asking about their horror stories as they’re usually good for a laugh (and a crash course in what not to do in an interview). A good friend of mine has worked in HR for the last decade and has sat in on her fair share of interviews, so naturally I asked her what some of her most notable experiences were with candidates – the good and the bad, in her own words…

“Let’s see, I think the worst questions I’ve ever had are typically related to benefits or vacation as it demonstrates that their priorities are not focused on the actual job they will be performing. I’ve had candidates ask how much vacation time they’ll receive during an initial phone screen (as their only question!). I’ve also had them ask about benefits and make comparisons to me over the phone about how our benefits compare to their current employer.

I once had a candidate ask me about the age demographics of our office, which was very uncomfortable and inappropriate! They were trying to determine if the attorneys at our law firm were older than the ones they were currently supporting. It was quite strange!

I also once had a candidate ask me about the work environment, which was fine, but they then launched into a story about how they are in a terrible environment and are planning on suing their company. While I understand that candidates may have faced challenges in their previous roles or worked for companies that had toxic working environments, it is important that you do not disparage them.

In all honesty, the worst is when they do not have any questions at all. In my opinion, it shows that they are not really invested in the position or have not put enough thought into their decision to change jobs. Moving to a new company is not a decision that should be made lightly and it’s important for me as an employer to make sure I am hiring employees who are genuinely interesting in the work they will be doing.

The best questions that I’ve been asked typically demonstrate that they’re interested in the position and have a strong understanding of the work they would be doing if they were hired. My personal favorite question that I’ve been asked is if there are any hesitations or concerns that I may have based on the information they’ve provided that they can address on the spot. To me, this demonstrates that they care about the impression that they’ve made. I’ve asked this question in interviews and been able to clarify information that I did not properly explain when answering a question. It was really important to me that I was able to correct the misinformation as it may have stopped me from moving forward in the process!

Also, questions that demonstrate their knowledge base about the role in which they’re applying for is always a good sign. I particularly like when candidates reference items that I’ve touched on and weave them into a question.

A few other good questions:
• Asking about what it takes to succeed in the position
• Asking about what areas or issues may need to be addressed when first joining the company
• Asking about challenges that may be faced if you were to be hired
• Asking the employer what they enjoy most about the company
• I am also self-centered, so I always like when candidates ask about my background and how my current company compares to previous employers that I’ve worked for. Bonus points if they’ve actually looked me up on LinkedIn and reference specifics :)”

Think about the best and worst experiences you’ve had during an interview – and talk to others about the same topic – and see how that can help you with future interviews.

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Business News

AdvoCare MLM was painted as a pyramid scheme! Well color me surprised

(BUSINESS NEWS) AdvoCare is the most recent case of an MLM being called out as a pyramid scheme by FTC, but there’s plenty more MLMs where that came from…

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AdvoCare business structure

It’s always a good day when an MLM (multi-level marketing business) actually suffers legal repercussions. Granted, these days don’t happen nearly as often as we’d like – MLM CEOs have historically had deep pockets and a far reach – which means it’s all the more reason to celebrate when one gets called out.

Today’s culprit is AdvoCare, a Texas-based “wellness” company. AdvoCare has been fined $150 million by the FTC (Federal Trade Commission) for operating a pyramid scheme. The company, as well as a few of its top influencers, have been misleading people when it comes to how much money they could earn. This is pretty typical behavior for MLMs in general, though many are careful to couch your potential earnings in vague terms.

For the record, the majority of users lost money, and most who managed to turn a profit made a maximum of just $250. I say ‘just’ because it’s hard to know how long someone would have had to work to not only break even, but manage to turn a profit. MLMs make big claims about earning money, but when you have to pour a hefty sum of cash into the products, it can take a while just to break even.

That’s why many MLMs, including AdvoCare, push contributors to recruit, rather than sell the product. And if you’re thinking that sounds like a pyramid scheme, you’re totally right. This method of putting recruiting first is part of the reason AdvoCare has gotten in trouble with the FTC.

In response, AdvoCare is moving away from multi-level marketing sales and pivoting to selling products directly to retail stores, which in turn sell to customers.

Now, with AdvoCare’s downfall, don’t be surprised if other MLMs insist that they’re different because they haven’t gotten in trouble with the FTC. In fact, plenty of MLMs are quick to tell you that they’re totally legal and totally not a pyramid scheme. Sure, Jan.

First of all, if there’s a big focus on recruiting, that’s obviously a big red flag. There are plenty of pyramid scheme MLMs out there that just haven’t gotten caught yet. But there are other sneaky ways an MLM will try to rip you off. For instance, some companies will insist you buy tons of product to keep your place, and that product can be very hard to unload. Not to mention, many of the products MLMs tout are subpar at best.

AdvoCare getting called out by the FTC is a great start, but MLMs seem kind of like hydras. Cut down one and two more seem to spring up in its place. So be vigilant, y’all. Just because an MLM hasn’t gotten caught yet doesn’t guarantee it won’t still scam you out of your hard earned cash.

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Business News

Bose is closing their retail stores, but we haven’t heard the last of them

(BUSINESS NEWS) Over the last 30 years Bose has become so well understood by consumers that they don’t even need retail stores anymore. We hear them just fine.

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Over the next few months, Bose plans to close all of their retail stores in North America, Europe, Japan, and Australia. The company made the announcement last week. With 119 stores closing, presumably hundreds of Bose employees will be laid off, but the company has not revealed exact numbers.

However, this shouldn’t be taken as a sign that the maker of audio equipment is struggling to stay afloat. Rather, the move marks a major change in how consumers purchase tech gear.

When the Framingham, Massachusetts-based company opened its first U.S. retail store in 1993, it was making home entertainment systems for watching DVDs and listening to CDs. According to Colette Burke, Bose’s vice president of global sales, these first brick-and-mortar locations “gave people a way to experience, test, and talk to us” about Bose products. “At the time, it was a radical idea,” she says, “but we focused on what our customers needed and where they needed it – and we’re doing the same thing now.”

When a lot of this equipment was new, consumers may have had more questions and a need to see the products in action before purchasing. Nowadays, we all know what noise-canceling headphones are; we all know what a Bluetooth speaker is. We’re happy to read about the details online before adding products to our virtual shopping cart. The ability for Bose to close its retail stores is probably also an indicator that Bose has earned strong brand recognition and a reputation as a reliable maker of audio equipment.

In other words, consumers are less and less inclined to need to check out equipment in person before they buy it. For those who do, Bose products can still be purchased at stores like Best Buy, Target, and Apple. But overall, Bose can’t ignore the fact that their products “are increasingly purchased through e-commerce,” such as on Amazon or directly from their website.

In a statement, Bose also said that it has become a “larger multi-national company, with a localized mix of channels tailored for the country or region.” While Bose is shutting down its retail stores in several continents, it will continue to operate stores in China, the United Arab Emirates, India, Southeast Asia, and South Korea.

Burke said the decision to close so many retail stores was “difficult” because it “impacts some of our amazing store teams who make us proud every day.” Bose is offering “outplacement assistance and severance to employees that are being laid off.”

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