Kaiser Daily Health Policy Report examines recent developments related to medical malpractice in three states. Summaries appear below.
Maryland: The Medical Mutual Liability Insurance Society of Maryland, which provides malpractice insurance for most physicians in the state, this month in a letter to policyholders announced that premium rates will remain the same next year after average increases of 28% and 33% in the previous two years, the Washington Post reports. Medical Mutual attributed the decision to a significant decrease in payouts for malpractice claims last year. According to the letter, Medical Mutual payouts for malpractice claims decreased from $93 million in 2003 to $78.5 million last year, with similar payouts expected this year. The announcement has raised concerns about the future of a program established under a new state law that provides subsidies to help physicians cover the cost of malpractice insurance premiums. The program, which provided $27 million in subsidies to Medical Mutual policyholders this year, effectively capped the increase in malpractice insurance premium rates at 5%, rather than 33%. Last week, the Maryland Insurance Administration sought legal advice about whether the law allows the subsidies to continue when malpractice insurers do not increase premium rates (Wagner, Washington Post, 8/19).
South Carolina: State lawmakers on Tuesday began to consider new malpractice reform legislation only months after the enactment of a bill that capped noneconomic damages in malpractice lawsuits at $350,000 for an individual defendant and $1.05 million for multiple defendants. At the first of four meetings, a state Senate subcommittee discussed "I'm sorry" legislation, which would allow physicians to apologize for medical errors without concern that patients could use the apologies as evidence in malpractice lawsuits. About 17 other states have enacted such laws, according to Doug Wojcieszak, a spokesperson for Sorry Works. The subcommittee in the three future meetings will address other malpractice issues, such as the use of alternative methods to resolve lawsuits and the removal of barriers that prevent the discussion of patient care among health care providers (Collins, AP/Charleston Post and Courier, 8/17).
Wisconsin: Business groups in the state have announced plans for a $2 million campaign to oppose recent state Supreme Court decisions that overturned a $350,000 state cap on noneconomic damages in malpractice lawsuits and reduced the requirements plaintiffs must meet to receive punitive damages, the AP/Washington Examiner reports (Ross, AP/Washington Examiner, 8/15). The state Supreme Court in July voted 4-3 that the cap violated equal protection rights in the state constitution. The state enacted the cap in 1995 (Kaiser Daily Health Policy Report, 7/15). Health care and business groups maintain that the cap has helped to limit increases in malpractice insurance premium rates. Freedom Works plans to launch a campaign to overturn the state Supreme Court decisions with legislation. Meanwhile, in response to the decisions, a state legislative committee will study malpractice legislation that would address the concerns raised by the court. Some have said that state lawmakers might have to amend the state constitution to limit the ability of the court to review certain malpractice laws (AP/Washington Examiner, 8/15).
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