read Read

e-mail E-mailprint Print

LEGAL REFORM

MEDICAL MALPRACTICE LIABILITY REFORM

THE ISSUE IS. The enactment of medical malpractice liability reform legislation.

IT'S IMPORTANT BECAUSE. The cost of medical malpractice insurance, which serves to insure doctors and others in the medical field for liability claims arising from patient treatment, has skyrocketed in the past few years. These rate increases have resulted from a number of factors, including: the growing number of medical malpractice claims, rising defense costs, and a reduced supply of available coverage. For example, the average jury award in medical malpractice lawsuits has more than tripled to $3.5 million since 1994.

Due to these rising costs, there are nationwide examples of doctors refusing to take on new patients, having to quit their practices, or relocating to other states. Additionally, many insurance companies that once provided medical malpractice coverage have been forced to completely withdraw from the market, while others have had to stop selling such policies.

In July 2003, the Senate debated S. 11, the Patients First Act of 2003, which would limit the amount of jury awards in malpractice lawsuits against health care providers. Specifically, S. 11 would do the following: place an award cap of $250,000 on non-economic damages in medical malpractice cases; cap punitive award damages at the greater of $250,000 or twice the amount of awarded economic damages; and limit attorney's fees in contingency cases.

Unfortunately, S. 11 was unable to garner the 60 votes needed to end debate on the issue. However, med mal remains a top priority for Senate Majority Leader Bill Frist (R-TN) and will likely arise again this year.

The bill, S. 11, is very similar to the bill passed by the House in March by a vote of 229-196. H.R. 5, the Help Efficient, Accessible, Low Cost, Timely Healthcare (HEALTH) Act of 2003, would: cap punitive damages at twice the economic damages or at $250,000, whichever is greater; limit attorney's fees in contingency cases; and protect health care providers and managed-care plans from liability. However, the bill would not place any limits on economic damages.

If the Senate fails to pass legislation limiting damage awards in medical malpractice lawsuits this year, Senate Health, Education, Labor and Pensions Committee Chairman Judd Gregg (R-NH) has stated that he will seek a legislative vehicle for an amendment aimed at helping certain physicians (those practicing in poor or underserved areas) affected by high malpractice insurance premiums. Gregg has been a key supporter of med mal reform and believes that a more targeted amendment approach might have a better chance of passing.

Proponents of medical malpractice legislation received a blow from a new General Accounting Office (GAO) report (GAO-03-836) dispelling many of the arguments often used in favor of capping awards to victims of malpractice. However, the report did identify "localized healthcare access problems" mostly concentrated in rural areas that it linked to providers' rising insurance costs.

NAMIC POSITION. NAMIC believes that Congress must pass legislation to reform medical malpractice liability. While those who are truly harmed by medical malpractice should be justly compensated for their injuries, the current system is forcing many doctors quit their practices or relocate because the rising costs are simply too much. If this trend continues, more and more doctors will be unable to practice, and as a result, more patients will have difficulty finding proper care. NAMIC is supportive of medical malpractice legislation that would limit the runaway jury awards of non-economic and punitive damages.

powered by Google

Legislative Action Network

As a "minuteman," you will be in the know at the critical moment when a call to action is necessary or when decisions are being made on issues like federal regulation of insurance, legal reform, terrorism insurance, asbestos reform and small property/casualty company taxation.

Benjamin Franklin Public Policy Award

Every two years, NAMIC presents their coveted Benjamin Franklin Public Policy Award© to lawmakers who have supported a stronger insurance market at least 75 percent of the time. This is demonstrated based on their support of NAMIC's position on certain roll call votes taken, or being a principal player/sponsor on legislation affected the property/casualty insurance industry, during the previous Congress.