HEALTH CARE: The Malpractice Myth
I hear the same argument all the time, "We don't need a public option to control health care costs. We just need to limit ambulance-chasing attorneys from filing so many medical malpractice claims!" Like the joke goes, "First, we kill all the lawyers..."
Now supporters of Health Care reform will try to tell you that only 1% of total health care costs are due to malpractice claims. But the Right will insist that all we need to do is stop all of these frivolous claims and all of us will benefit from lower insurance premiums
But here in Missouri, we have put this theory of tort reform & cost control into practice. In 2005, then-Gov. Matt Blunt signed legislation that restricts medical injury lawsuits. According to the Right, we should now have lower health care insurance rates. Don't we? After all, that's what was promised by the Republican-led state legislature when they passed the law.
Unfortunately we don't. Even though at the end of 2008 there were ONLY 3,000 cases in Missouri pending against doctors, hospitals & other types of health care providers. THAT IS THE LOWEST NUMBER ON RECORD IN THE LAST 30 YEARS. The average cost of health insurance last year increased an average of 7.5%. So in spite of the reform legislation which has led to an unprecidented low number of claims....costs are still increasing here in Missouri! Somebody want to explain how this is supposed to work on a national level? Especially since the increase in costs is still more than the average increase in wages for Missourians.
Now in fairness, the rate of increase has slowed. Which gives credibility to the Right's assertion that malpractice claims are part of the problem...but it's obviously not the total solution. It's also not the ONLY factor that has contributed to the slower growth in premiums.
Other factors that have influenced the slower rate of growth for Missourians include wellness programs, coordination of benefits and use of a network of health care professionals. Some of the very same programs that have been touted by the Obama administration to control costs.
One other major factor in controlling these costs is controlling the cost of medical malpractice insurance for doctors. These rates are so high that I know of one married couple, both doctors who work full time. The wife's entire yearly income goes to pay for the insurance of both doctors. Literally half of their combined income goes to pay for thier insurance. A reduction in overall claims have NOT decreased their malpractice premiums. This is why more and more Missouri doctors are getting their malpractice insurance from nonprofit coalitions. (Which is a kind of PUBLIC OPTION for doctors!)
One last thing to keep in mind. Medical malpracticer insurers are bringing in the same amount in premiums, paying out less for claims and posting profits for the last 5 years. Too bad we as consumers aren't seeing any relief!
















Reality. Malpractice amounts for slightly less than 1% of total healthcare cost. Tort reform is not the panacea the right likes to claim. Then throw in when states have enacted insurance companies have not lowered Dr's premiums and have a complete failure of an argument.
September 9, 2009 12:18 AM | Reply | Permalink
This is very very good as far as I am concerned. Watched a very good interview on CSPAN over the weekend by and advocate of a one payer system.
He is over sixty five, is back in the states and has Medicare plus additional insurance...which repubs and everyone else always forgets. You see the rich will always have umbrella coverage.
At any rate his conclusion was that REAL CHANGE will happen one state at a time. Many experiments will be tried...
I really was impressed that 'tort reform' which merely means the poor and middle class cannot get through the courthouse doors, had no effect upon malpractice rates. And what, pray tell, is the
Missouri Legislature doing about this?
September 9, 2009 3:21 AM | Reply | Permalink
Medical malpractice is one of the biggest red herrings in this debate, which, I suppose, is the reason Reiglickans like to talk about it so much.
(Background: My professional career included medical malpractice insurance and claims management for about 20 years)
Here's a reality that the GOP does not like to bring up: While it is impossible to collect evidence quality data, it is fairly well known to insiders that the vast majority of medical malpractice incidents result in no sanction, claims, lawsuit or settlement. Most people simply do NOT wish to engage in a legal battle with their medical provider. My personal estimation is that 8/10 injured parties simply go away.
When a claim is filed, the forces aligned against the plaintiff are formidable. Providers close ranks if they can. Insurance companies try to shift blame to other insurance companies. The entire system is an obstacle course against the plaintiff. When people complain that lawyers collect too much, they ought to gain an appreciation of what a lawyer has to do in order to secure relief for the injured party. (However, there are definitely sleazy lawyers out there who do nothing to help their clients. Rather, they use their clients to unjustly enrich themselves.)
September 9, 2009 10:45 AM | Reply | Permalink
Malpractice is a significant cost but not really a driver of cost increases (it is a constant factor over time, therefore isn't driving continual increases, QED).
Malpractice reform would be nice (as would tort reform more generally) but it should not be an issue in a debate over health insurance reform.
September 9, 2009 1:45 PM | Reply | Permalink
Ditto for WV
Malpractice premiums are down and now doctors are saying West Virginia is one of the best places to practice and live.
No decrease in medical insurance premiums (Surpise, Surprise)
Now due primarily to cap on non-economic (pain and suffering, loss of companionship etc)damages of %500,000, try finding a lawyer in WV that will take a medical malpractice case unless it was akin to cutting off the wrong limb or open and shut case of liablity on a death of someone with lots of economic value.
September 9, 2009 4:22 PM | Reply | Permalink
limits on medical malpractice claims are just another way to screw people who really need help.
it's a fact that mistakes are made by doctors and when doctors make mistakes there are long term and expensive consequences for the patient involved. without single payer or universal healthcare, how is the injured patient supposed to pay for future healthcare or support themselves while they recover, if they can recover?
we don't limit the liability of the guy who rear-ends you do we?
is the magic money fairy going to pay for their rehab?
the system is already so stacked against people who have been the victims of medical malpractice that ONLY meritorious claims get pursued. it's hard enough to win even if you have the facts on your side because the insurance industry will fight the claim tooth and nail.
oh, and studies already show that states enacting caps and other various forms of tort reform don't necessarily see any reduction in premiums. hell, the insurance companies don't make real money off the premiums anyway. they want the money to invest in the stock market.
i'm all for getting rid of the tort system if those proposing it agree to free medical care and a guaranteed living income...
September 9, 2009 8:08 PM | Reply | Permalink
Malpractice lawsuits not only increase medical costs by raising the cost of medical malpractice insurance -- they also force doctors and hospitals to practice defensive medicine by performing tests and procedures that are unnecessary.
That is probably a much larger cost than the malpractice insurance.
September 9, 2009 10:04 PM | Reply | Permalink
Have you ever had a malpractice claim?
My experience is that they are impossible unless somebody died or was crippled.
I was told, after a medical misadventure, that the fact I could still walk and work essentially negated my ability to succeed as the settlement would be too small to be worth pursuit.
The Republicans have been getting away with playing the 'Tort Reform' / 'Malpractic Lawyers are at fault' tune for almost 20 years, and no one calls them on it. Why?
September 9, 2009 10:27 PM | Reply | Permalink
The key fact you cite, in my view, is that doctors' malpractice premiums have not gone down. That is the main rationale for tort reform. Doctors really do seem terribly burdened by the threat of lawsuits and their malpractice costs -- these two related but not identical factors surely lead to defensive medicine, the prescribing of unnecessary tests and procedures to avoid malpractice suits.
But the rates have not gone down. Robert Hunter, a former Texas Insurance Commissioner and consumer activist, has published research purporting to show that malpractice rates are driven by insurance companies' investment performance, not by litigation rates. If tort reform doesn't drive down insurance rates, what good is it? I'd like to see more data from more states as to the effect of tort reform on rates.
September 10, 2009 12:07 AM | Reply | Permalink