New Blue Cross and Blue Shield Association Survey Points to National Impact of Medical Malpractice Insurance Crisis

CHICAGO -- The nation's medical malpractice insurance crisis is threatening healthcare costs and access to care, according to a new survey of the 42 Blue Cross and Blue Shield (BCBS) companies.

Blue Plans believe that because of rising malpractice insurance premiums, some patients are experiencing reduced access to care as physicians leave expensive malpractice markets, retire early or refuse to perform certain high- risk procedures, according to the survey. They also believe that the cost of malpractice insurance is fueling the rise in the practice of defensive medicine, increasing utilization and adding excessive pressure to the nation's continuing struggle with rising healthcare costs.

"We believe medical malpractice in the United States is now doing exactly the opposite of what it was originally intended to do," said BCBSA president and CEO Scott P. Serota. "Medical malpractice laws were enacted to protect patients in the event of an egregious error in medical judgment or treatment. But today, our medical tort system is so distorted that it is threatening healthcare affordability, access to care -- and some would argue it is jeopardizing quality of care."

"That's taking us in the wrong direction," Serota added. "Protecting patient rights must start with keeping healthcare affordable and accessible and promoting improved patient care."

Recent news accounts of physician walkouts and demonstrations in several states, including Florida, Pennsylvania and West Virginia are examples of concerns reflected nationally in the BCBSA study. The survey's findings also mirror similar conclusions from an American Medical Association (AMA) report last year that identified 12 "crisis" states and 30 other states with growing medical malpractice problems.

There is a growing concern nationally that rising malpractice insurance premiums are causing physicians to cut back on some aspects of care. A majority of Blue Cross Blue and Blue Shield Plans in crisis states report that:

-- 56 percent of BCBS Plans in crisis states say physicians are

refusing some high-risk procedures, versus 32 percent for non-crisis

states;

-- 56 percent of BCBS Plans in crisis states say physicians are

leaving practice or retiring, versus 42 percent of respondents in non-

crisis states;

-- more than twice as many crisis-state BCBS Plans as non-crisis-state

Plans report physicians reducing emergency room calls (44 percent

versus 17 percent) or refusing to see patients (38 percent versus

17 percent); and,

-- nearly a third (31 percent) of crisis-state BCBS Plans say physicians

are moving practices out of state; a fifth (20 percent) of non-crisis

Plans give the same response.

The survey was conducted by the Blue Cross and Blue Shield Association (BCBSA) and includes responses from every BCBS member Plan.

"Keeping healthcare affordable and reducing the number of uninsured Americans is the number one priority of the Blue Cross and Blue Shield System," said Serota. "The current dash-for-cash medical tort environment is clearly not adding value to the healthcare system as a whole by threatening affordability, access and quality."

The survey complements a comprehensive report produced by BCBSA, cataloging historic and current conditions of the malpractice insurance market. Both reports signal an urgent need for reform of the nation's medical malpractice system. The BCBSA Plan survey results are available online at http://bcbshealthissues.com/malpractice .

The Blue Cross and Blue Shield Association is comprised of 42 independent, locally operated Blue Cross and Blue Shield companies that collectively provide healthcare coverage for 84.4 million -- nearly 30 percent of all Americans.

Source: Blue Cross and Blue Shield Association