That was something else specifically referenced in Hot Coffee. One of the Bush Admin's main reasons cited for pushing tort "reform" was ALL the wasteful court costs associated with frivolous lawsuits in the state of Texas which supposedly resulted in the premiums of EVERYONE going up.
As it turned out though, even after the "reforms" were passed reducing the number of cases that actually went to court (many of which were then/now handled instead through mandatory arbitration favoring the healthcare systems), and reducing damage cap liabilities even for legitimate cases of negligence, healthcare costs for EVERYONE in Texas either remained the same overall or cost even more across the board.
So was it all just lip service in favor of big business? Depends on who you ask I guess.