G.A.O. Study: Medical Malpractice Premium Growth is Slower in States with Tort Reform.

The U.S. General Accounting Office (GAO), the non-partisan investigative arm of the U.S. Congress, found in a new report that growth in medical malpractice premiums is slower in states that have limits on noneconomic damages.

The G.A.O. report, Implications of Rising Premiums on Access to Health Care (GAO -03-836), found that between 2001 and 2002, “average premiums for three physician specialties—general surgery, internal medicine, and obstetrics/gynecology—grew by about 10 percent in states with caps on noneconomic damages of $250,000, compared to about 29 percent in states with limited reforms.”

These dramatic increases in the cost of medial liability insurance are prompting doctors to leave high risk specialty areas, and are driving others out of practice entirely. The G.A.O. noted that in five of the nine states in the study, they, “confirmed instances in the five states of reduced access to hospital-based services affecting emergency surgery and newborn deliveries…”

CSE President and CEO Paul Beckner commented:

“This is more evidence of the damage trial lawyers are doing to America’s health care system, and speaks to the urgent need to pass a federal cap on noneconomic awards. Even when plaintiffs win a malpractice suit, they usually see less than half of their award after legal and administrative fees have been paid. Malpractice litigators will often have a portfolio of cases, hoping that one of them will win big—it’s a “lawsuit lottery” system.”

“The House of Representatives has already passed H.R. 5, a solid reform bill that would cap non-economic damages for medical malpractice suits at $250,000. It also would raise the bar for damage awards, making it harder for ambulance chasing sharks to feed off of tax dollars and doctors’ wages.”

“CSE calls on the Senate to move and pass this legislation.”

H.R.5, the “Help Efficient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act“ passed the House of Representatives by 229 to 196 on March 13, 2003. The Senate is filibustering a related bill, S. 11, “The Patients First Act,” and on July 9, 2003, an attempt to break the filibuster failed by a 49–48 vote. Another Senate vote is expected.

CSE also supports parallel action at the state level. According to the American Tort Reform Association (ATRA), of which CSE is a member, this year alone 9 states have enacted some medical liability reforms and another 17 are at least considering legislation.

A .pdf version of the G.A.O. report is available for download here.