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22 July 2003
10 July 2003
Medical Malpractice Bill Dies in Senate
An oft repeated bromide is the notion that malpractice lawyers are the primary cause for the high price of health insurance. A number of recent news articles, including an extensive USA Today study, have debunked this assertion.
But a six-week study by USA TODAY finds that while some doctors in particularly vulnerable specialties — obstetrics, neurosurgery and some high-risk surgical fields — face severe problems, most physicians are minimally affected. Premiums are rising rapidly, but no more than other health care costs. They represent only a small slice of doctors' expenses. Even for the hardest-hit specialists, the most severe problems are concentrated in a handful of states.How much of a doctor's revenue goes to malpractice insurance? A March 2002 government report by MedPAC, a congressional advisory commission, says doctors, on average, were expected to spend 3.2% of their revenue on malpractice insurance last year. That compares with 12.4% for staff salaries, 11.6% for office expenses and 1.9% for medical equipment. Calculations based on two surveys published by Medical Economics magazine — widely read by physicians — last year show that OB-GYNs paid the most for malpractice insurance, as a percentage of their revenue, 6.7%, and cardiologists paid the least, 1.5%.
Some other factual tidbits:
- Less than 2% of malpractice claims result in a winning verdict at trial, according to insurance industry estimates.
- In some states, medical organizations and regulators have failed to weed out bad doctors. That has caused malpractice rates to go up for all.
As far as damage caps go, a recent Time article shows doctor's malpractice insurance rates are higher in states with damage caps.
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