Malpractice insurance rise tied to legal claims
Tuesday, July 29, 2003
By Lara Jakes Jordan, The Associated Press
WASHINGTON -- Increases in medical malpractice insurance rates in
some states, including Pennsylvania, were due largely to high
payoffs on legal claims, according to a congressional survey
released yesterday.
In Pennsylvania, insurers faced a 70.9 percent increase in
successful malpractice claims against doctors and other medical
providers from 1998 to 2001, said the General Accounting Office,
investigative arm of Congress.
"Losses on medical malpractice claims appear to be the primary
driver of increased premium rates in the long term," the report
states. "Such losses are by far the largest component of insurer
costs."
But the report, which surveyed rates in seven states, notes that
the increases varied greatly from state to state and across medical
specialties. General surgeons in Florida, for example, faced a 75
percent rate increase from 1999 to 2002, but rates increased only 2
percent in Minnesota during the same period.
Pennsylvania is one of a dozen states in the country that does
not cap the payout in jury awards for victims of medical malpractice
seeking pain and suffering damages. The U.S. House this year passed
legislation, endorsed by the White House, to cap non-economic jury
awards at $250,000. But Senate Democrats killed the bill,
maintaining that men, women and children who were grievously injured
through medical errors should be entitled to seek the damages.
Close to 1,000 Pennsylvania doctors have left the state in recent
years, in large part to avoid skyrocketing costs of malpractice
insurance, according to the Pennsylvania Medical Society. |