The Type of Tort Reform We Really Need
This interesting article convincingly argues that medical liability caps do not bring down medical malpractice premiums. Instead, the forced sharing of rate setting methodologies and more competition amongst insurers effectively accomplishes this goal.
In short, as has been argued at a past DMI Marketplace of Ideas event, it is better regulation of the insurance industry, and not caps which drive down insurance premiums (See Lowering the Cost of Insurance with Harvey Rosenfield, DMI Marketplace of Ideas)
Minor insurer is cutting malpractice rates for doctors By Adam Jadhav ST. LOUIS POST-DISPATCH 10/13/2006(continue reading article)
Pointing to medical malpractice legislation enacted more than a year ago, an insurance provider plans to announce that it will cut its premiums for Illinois doctors by more than 30 percent.
However, it was not the landmark bill's caps on how much doctors and hospitals can be forced to pay in a lawsuit that apparently did the trick, officials say. Berkshire Hathaway's Med Pro insurer - a minor competitor in Illinois' malpractice insurance market - says it is cutting rates because of the law's provisions designed to aid competition between malpractice insurers.
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Senior Fellow in Civil Justice
Drum Major Institute for Public Policy