Cyrus Dugger

Georgia: Malpractice Law Reforms of 2005 Get Mixed Review

Malpractice Law Reforms of 2005 Get Mixed Review By DEBBIE GILBERT The Times Almost two years after the Georgia General Assembly passed a "tort reform" law, doctors say they have not seen a significant reduction in their malpractice premiums.

But supporters of the 2005 law say that doesn't mean the measure isn't working.
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Georgia Watch, a consumer advocacy group, alleges that the lack of competition among insurers in Georgia has allowed MAG Mutual to raise its premium rates arbitrarily.

"The major flaw inherent in Senate Bill 3 was that frivolous lawsuits were never the main cause of rising insurance rates," Georgia Watch spokesman Coley Ward said. "Premiums were kept artificially high."

Officials with MAG Mutual declined comment Friday. In a report on its Web site, MAG Mutual explained that it had to raise rates because of the high cost of paying for malpractice verdicts, which the company said averaged $4.6 million per case in 2002.

But some people still believe insurance companies are squeezing doctors to make a profit. Earlier this week, state Rep. Robert Mumford, R-Conyers, introduced House Bill 378, which would require insurers to get direct approval from the state insurance commissioner before raising rates.
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HB 378 also would require insurers to publish reports showing how much they're paying out in claims, and any requested rate increase of more than 10 percent would require a public hearing.

"This law would inject some accountability into the process," Ward said. "Malpractice insurance companies would be forced to explain and justify why they need to raise rates."

Georgia Insurance Commissioner John Oxendine said state law requires his agency's approval for raising automobile insurance rates, but not for increasing business insurance premiums.

"That's the way it is in most states," he said.

Oxendine confirmed that insurers are allowed to raise malpractice premiums as much as they want.
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"Tort reform has kept many people from being able to file malpractice claims in Georgia," he said. "Lawyers do not want to take cases because the cap on awards doesn't make it worth their while financially.

"Also, the law's immunity provision for emergency rooms requires patients to prove gross negligence after the fact, which is almost impossible."

Ward questions why, if malpractice insurance is becoming more affordable, MAG Mutual hasn't dropped its premium rates.

Cook said legal issues have prevented the company from cutting prices.

"The Georgia Supreme Court is going to have to decide whether the cap on noneconomic damages is constitutional, which we estimate could take three to five years," he said. "If the court says it's constitutional, MAG Mutual would refund at least 10 percent of the premiums doctors paid in the past." (link)

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