Tort Refrom and Nudges

Over at andrewsullivan.com (of The Atlantic) there is an interesting back and forth going on about "Tort Reform" and health insurance as a legislative device.

My interest in this largely Republican meme (see Palin, Sarah who speaks about it somewhere I'd care not to link to) arose in reference to Thaler and Sunstein's _Nudge_ where they talk about tort reform not from a legislative perspective, but from an individual insurance one...

Why not charge for the right to sue regarding negligence claims (as opposed to assault and battery ones) in terms of insurance? Like limited tort in auto insurance (basically giving up the right to sue for those vague "neck injuries"), you pay less in premiums a month to stop suing for malpractice.

Unfortunately, Thaler and Sunstein are a bit vague on the implementation in practice (given that most of us "purchase" our insurance through our employer), but what if for medicare you were given the option of opting out of the right to sue and perhaps getting a small rebate (as in people who didn't would pay more for care) ? Would this save money? I'm unclear about the dynamics of implementation...