National Journal Looks at Rising Malpractice Premiums

The current issue of National Journal examines the medical malpractice insurance crisis, which is forcing doctors in several states to quit, move to states with lower malpractice premiums or "cu[t] out the riskiest parts of their practices." Providers and insurers say that rising malpractice awards -- and the legal system in which they occur -- are to blame for premium increases, which have increased by as much as 300% this year. Rep. James Greenwood (R-Pa.), whose home state -- along with Nevada and West Virginia -- has been among the hardest-hit by rising malpractice premiums, last month introduced a bill ( HR 4600) that would limit pain and suffering awards in malpractice cases to $250,000, with punitive damages capped at twice the amount of economic damages awarded, or $250,000, whichever is higher. While similar legislation has repeatedly stalled in the Senate after passing the House, proponents say that constituent pressure may lead to a different result this year. "The difference now is that we have a crisis situation, where patients don't have access to doctors and obstetricians," Donald Palmisano, a member of the American Medical Association's board, said. But trial lawyers are "promising to fight" both the Greenwood bill and state efforts to cap malpractice awards. They say that rising awards are a result of increasing incidence of malpractice and that insurers are raising malpractice premiums to boost profits. They say that rather than trying to limit awards, lawmakers should focus on reducing medical errors. Carlton Carl, director of media relations for the Association of Trial Lawyers of America, asked, "If you have the wrong leg amputated, would you think it was worth a maximum of $250,000?" (Werber Serafini, National Journal, 5/18).