Lawsuits Hinder Access to Care. A majority of Americans (84 percent) are
concerned that escalating medical liability costs could limit their access to
care, as doctors in many parts of the country, particularly those providing specialized
care, scale back services or abandon their practices. (Wirthlin Worldwide survey,
February 2003) Access to Care Can Be Improved. A recent study by the
federal Agency for Healthcare Research and Quality (AHRQ) showed that states have
about 12 percent more physicians per capita when limits on non-economic damages
are in place. (AHRQ, July 2003) Out-of-Control Litigation. From 1996-2000,
the number of medical liability claims rose five percent nationwide. Yet the real
problem is not the absolute number of claims, it's that claims are increasingly
concentrated in lawsuit-friendly states. During that same five-year period, some
states saw astronomical increases-from 40 to 97 percent-in the number of medical
liability lawsuits. (National Practitioner Data Bank, 2000 Annual Report) Mega-Verdicts
Rising. Between 1996 and 1999, the average jury award in medical liability
cases jumped 76 percent. In the last 15 years, there has been a 600 percent rise
in the number of mega-verdicts. (U.S. Department of Health and Human Services,
PIAA) Growing Losses. According to a report by the General Accounting
Office (GAO), skyrocketing losses on medical malpractice claims-which make up
the largest part of insurers' costs-appear to be the main reason insurance rates
for doctors are increasing so dramatically. As a result, many doctors find it
difficult, if not impossible, to obtain liability coverage. (GAO, June 2003) Reforms
Work. From 1998 to 2001, losses on medical malpractice claims in Pennsylvania
and Mississippi, two states that failed to adopt meaningful reforms, increased
by over 70 percent and 142 percent respectively. In contrast, California, which
adopted medical liability insurance reforms, saw an increase of losses of just
8.7 percent during the same period. (GAO, June 2003).
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