Some states have already passed bills limiting private lawsuits as well.
It would limit lawsuits to federal courts and cap damages at $500,000.
But insurance industry executives say the new law would not limit lawsuits at all.
It would limit lawsuits against cruel prison conditions in several ways.
Virtually every state has considered similar measures since the mid-1980's, and most have passed some measures to limit lawsuits.
The Senate, unable to win support for so broad a measure, passed a bill that would limit only lawsuits over actual products.
They argue that the bill goes too far to limit lawsuits and makes it more difficult for people to resolve disputes over their medical claims.
He also made a pitch for his efforts to limit lawsuits, saying malpractice claims had cut into the availability of health care.
Australia has universal healthcare and 'welfare state' systems which also limit lawsuits.
The biggest savings, lawmakers said, would come from an effort to limit frivolous lawsuits.