National Association of Mutual Insurance Companies

Print | ShareThis

Missouri: Positive Impact of 2005 Workers' Comp, Med Mal Reforms Reported

Gov. Matt Blunt and the Missouri Chamber of Commerce released news reports during the last week of September, affirming the beneficial impact of workers' compensation and medical malpractice reforms enacted in 2005.

Citing a new report by the National Council on Compensation Insurance, the Missouri Chamber of Commerce announced Missouri employers could soon see more than a 10 percent decrease in workers' compensation rates.

According to the Missouri Chamber, after observing a decrease in the state’s workers’ compensation claim frequency, the council is recommending a 10.1 percent drop in loss costs that should lead to drastically lower insurance premiums for Missouri employers.

“This decline we’re seeing in workers' compensation claims and the coming rate decreases are the fruit of our labor two years ago,” said Daniel P. Mehan, Missouri Chamber of Commerce president and CEO. “Missouri businesses will soon see reduced workers’ compensation costs thanks to the legislative leadership of Governor Matt Blunt and pro-business members of the Missouri General Assembly.”

The 2005 law change, advocated by the Missouri Chamber and insurers, contained reforms that reined in abuses of the system and provided stronger penalties for fraud. The law also more clearly positioned what injuries fall under the state’s workers' compensation system and contained provisions that require administrative law judges—those individuals who determine workers' compensation benefits—to follow the law as written.

A separate news release from the governor’s office announced that “the meaningful lawsuit reform he [Blunt] championed and signed in 2005 is helping ensure doctors and medical professionals have access to the insurance they need to care for Missouri patients.”

Before the passage of comprehensive lawsuit reform, Blunt said healthcare providers in Missouri were being hard hit by frivolous lawsuits and outrageous awards and that the 2005 reform has resulted in improved medical malpractice operations for the third consecutive year.

Highlights of the department’s 2006 Medical Malpractice Report note:

  • Newly reported claims declined by 61 percent from 2,822 claims in 2005 to 1,113 in 2006, reaching the lowest recorded in the department’s database.
  • Total closed claims increased from 1,799 to 2,292 between 2005 and 2006, a 27 percent increase.
  • Average tort claim settlements declined for a second consecutive year. Between 2005 and 2006, average awards declined by 13.8 percent, from $246,775 to $212,658.

"Legislation I signed in 2005 brought sweeping reforms to address a very serious medical crisis in our state by instituting needed lawsuit and medical malpractice reforms," Blunt said. "The reforms brought common sense and balance back to our state’s laws and improved access to health care for all Missourians."

The report, released by the Department of Insurance, Financial Institutions & Professional Registration, includes sections regarding the nature and substance of malpractice occurrences, allegations, and health outcomes to prepare for additional data being collected for next year’s report. Newly passed legislation requires self-insured and surplus lines claims data be reported in the same manner as other malpractice insurers, which will enhance the validity of future reports by ensuring information that has been unreported or underreported is accessible to the department.

Direct questions to NAMIC State Affairs Manager Tami Stanton.

Posted: Tuesday, October 09, 2007 12:00:00 AM. Modified: Tuesday, October 09, 2007 10:14:25 AM.

Salary Survey: Reports updated and available online 24/7/365.

(317) 875-5250 - Indianapolis | (202) 628-1558 - Washington, D.C.