Why America needs Medical Liability Reform
THE PROBLEM: More and More Americans Cannot Get the Health Care They Need When They Need It.
- Patient Care At Risk Due to Excessive Liability Costs... Leanne Dyess' husband Tony crashed his car and suffered severe head injuries, but the closest hospital did not have a specialist who could put a shunt into Tony's head. Mr. Dyess was airlifted to a medical center – six hours later. "I learned there were no specialists on staff that night... because rising medical liability costs had forced physicians in that community to abandon their practices," said Mrs. Dyess. Her husband is now permanently brain damaged. (Gannett News Service, February 12, 2003) Jim Chaffin, a local obstetrician, has a pregnant patient who needs gallbladder surgery, and he cannot find a surgeon to handle it. (The Florida Times-Union, June 30, 2002)
- Lawsuits Hinder Access to Care... More than eight in ten Americans (84%) express concern that skyrocketing medical liability costs could limit their access to care, as doctors in many parts of the country, particularly those providing specialized care, scale back services or abandon their practices. (Wirthlin Worldwide survey, February 2003)
- Doctors Abandoning High-Risk Procedures... Nearly 56% of Blue Cross/Blue Shield plans in the 12 "crisis" states identified by the American Medical Association are refusing some high-risk procedures. Nearly one-third of physicians in these states are moving their practices. (BlueCross BlueShield Association, January 15, 2003)
- Women Suffering Most... Faced with skyrocketing insurance premiums, approximately 1 out of 11 obstetricians nationwide have stopped delivering babies, scaling back their practices to gynecology only. (Self, April 2002) There are hardly any rural communities left in Mississippi that have doctors willing to deliver babies. (U.S. Department of Health and Human Services, July 24, 2002)
THE CAUSE: Our legal system has turned into a lawsuit lottery where a few win and the rest of us lose.
- Out-of-Control Litigation... From 1996-2000, the number of medical liability claims rose 5% nationwide. Yet the real problem is not the absolute number of claims... it's that claims are increasingly concentrated in tort-friendly states. During that same 5-year period, some states saw astronomical increases – from 40-97% -- in the number of medical liability lawsuits. (National Practitioner Data Bank, 2000 Annual Report)
- Mega-Verdicts Rising... Between 1996 and 1999, the average jury award in medical liability cases jumped 76%. In the last 15 years, there has been a 600% rise in the number of mega-verdicts. (U.S. Department of Health and Human Services, PIAA)
- Medical Liability Premiums Are Rising... Doctors across America are facing double-digit increases in liability premiums, driven by excessive litigation and Powerball-sized jury awards. In some cities, rates have soared as much as 300%. An OB/GYN in Florida, for example, can expect to pay as much as $200,000 per year for medical liability coverage. (PIAA, Medical Liability Monitor)
- Insurers Are Fleeing The Market... St. Paul once insured 42,000 doctors, 750 hospitals, 5,800 health care facilities, and 72,000 health care providers. The company stopped providing medical liability insurance. (American Medical Association)
- A National Problem Requiring a Federal Solution... Because medical liability insurers no longer limit their services to a single state, but engage in interstate commerce, it is appropriate and essential for Congress to pass federal liability reforms. In many states, opponents of liability reform have used the courts to create barriers to any meaningful reforms at the state level or even to overturn reforms passed by state legislatures. It's time for Congress to take action.
American's medical liability system is broken. It's a dangerous equation. Lawsuit Lottery = Skyrocketing Insurance for Doctors = Less Care for Patients
THE SOLUTION: It's time for Congress to enact proven, common sense reforms that safeguard patients' access to care while preserving their access to the courts.
- Reform Keeps Premiums In Check and Health Care Available... In 1975, California passed landmark medical liability reform legislation that included reasonable guidelines for non-economic damages. Since then, medical liability premiums have increased by 505% nationwide compared to just 167% in California. (Californians Allied for Patient Protection, Physician Insurers Association of America)
- Reform Helps Patients and Doctors... Medical liability reform lowers health care costs in California by an estimated 6% – saving California patients $6 billion every year on health care. California's medical liability disputes are settled 26% faster – saving doctors and patients years in the courtroom. (NORCAL Mutual Insurance Company, January 9, 2003, Californians Allied for Patient Protection, National Practitioner Data Bank)
- Reforms Save Billions In Health Care Costs... A study published in the Quarterly Journal of Economics estimates that common sense liability reforms – such as limiting non-economic damages – would reduce health care costs by 5-9%, generating savings of $60-$108 billion a year. (U.S. Department of Health and Human Services, July 24, 2002)
- Polls Show Strong Public Support... More than seven out of 10 Americans (71%) agree that medical liability litigation is one of the primary forces driving up health care costs. By an overwhelming margin (76%) Americans favor a law that would guarantee injured patients full payment for lost wages and medical costs, with reasonable limits on non-economic damages. Three-quarters of Americans (75%) favor limiting the percentage trial lawyers can collect in medical liability settlements or awards (Wirthlin Worldwide survey, February 2003)
We know that medical liability reform works. Americans overwhelmingly support Congressional action on reform that benefits patients, not lawyers.
Revised November 3, 2011