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.

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.

Posted: Friday, March 30, 2007 12:00:00 AM. Modified: Friday, March 30, 2007 2:00:03 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.