Study says caps lower premiums
NEWS IN BRIEF — Posted Feb. 9, 2004
Physicians in states with caps on medical malpractice awards enjoy premiums that are 17.1% lower than those in states without caps, according to a new study from the chair of the health policy and management department at Emory University Rollins School of Public Health in Atlanta.
Author Kenneth E. Thorpe said caps at the federal level ultimately would mean lower insurance premiums, but he questioned whether that would accomplish the liability system goals. "The results suggest that capping awards may improve the profitability of malpractice carriers and reduce premiums," Thorpe said in the study. "Whether this is socially desirable or improves the goals of deterrence and compensation remains an open question."
The report, "The Medical Malpractice 'Crisis': Recent Trends And The Impact Of State Tort Reforms," is available online (link).
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/02/09/prbf0209.htm.