New Bipartisan Study by West Virginia Legislature Confirms Caps in Medical Malpractice Cases Won't Reduce Insurance Rates for Doctors

WASHINGTON -- A new bipartisan legislative report in West Virginia -- where surgeons walked off the job last week -- confirms that capping damages in medical malpractice lawsuits won't lead to lower insurance rates for doctors. This proves again that insurance reform is the only way to assure reasonable rates for doctors and guarantee healthcare access for patients, the Association of Trial Lawyers of America (ATLA) said today.

"This report separates myths from facts, which show that limits on lawsuits never have resulted in rate reductions for doctors and benefit only the insurance industry," ATLA president Mary E. Alexander said. "Trial lawyers are committed to a real solution that helps doctors without harming patients, who shouldn't have to give up their legal rights so insurance companies can make higher profits."

The final report of the interim Select Committee on Insurance Availability and Medical Malpractice Insurance, which studied the issue for a year, concluded that "any limitations placed on the judicial system will have no immediate effect on the cost of liability insurance for health care providers."

That's what happened last year in Nevada, where insurance companies refused to lower doctors' malpractice rates after enactment of a cap supported by the insurance industry. In Missouri, another state that caps damages, malpractice premiums are skyrocketing although the number of malpractice claims and the cost per claim have been declining.

West Virginia also has a cap, which did not prevent surgeons from leaving their jobs last week to protest skyrocketing insurance rates, Alexander noted.

"The real problem is that the insurance industry has too much control over health care in America," Alexander said. "Big insurance companies control doctors' livelihoods and patients' lives. The situation won't improve for doctors or patients unless we reform the insurance industry -- which operates outside of antitrust laws and colludes in fixing prices."

Another study by Americans for Insurance Reform (http://www.insurance-reform.org/ ), a coalition of 100 consumer groups, found malpractice insurance premiums in West Virginia and elsewhere track economic cycles, not pay-outs in malpractice cases, which have remained flat for the last decade. During economic downturns, insurers raise rates to make up for investment losses, the group found.

Source: PRNewswire