Medical Liability Solutions Priority for States in 2004
Searching for solutions to medical liability reform and reducing health care
costs will figure prominently in the states' legislative agenda for the fiscal
year 2004, according to a recent survey conducted by the Blue Cross and Blue
Shield Association.
Among the states that made an attempt to resolve the issue in 2003,
Arkansas, Georgia, Texas, and West Virginia imposed provisions on court venue
reform. In addition, Ohio established a compensation fund and West Virginia
passed legislation authorizing a physician tax credit to offset medical
liability premiums. According to a Health Insurance Association of America
study, 41 states introduced legislation modifying or introducing caps on
non-economic damages, with 11 states passing measures.
Following are profiles of some recent medical liability developments in the
states this year:
|
Senate May Take Up Medical Liability Reform Bill Next Year
AMDA staff recently began collaborating with three
long term care organizations to develop joint advocacy documents that
express the impact of the liability crisis on quality long term care.
The documents, which will be jointly written by AMDA
and the American Health Care Association (AHCA), the American
Association of Homes and Services for the Aging (AAHSA), and the
American Geriatrics Society (AGS), will be placed on the Web site and
distributed to state chapter presidents and contacts for their use as
media and legislative advocacy tools.
While there is still a possibility of another vote on
medical liability reform, the urgency of Medicare Reform will likely
push any further movement on medical liability until next year.
Although the failed Senate bill (S.11) never gained
pivotal support among Senate Democrats, two other bills have been
introduced since the Senate's vote to not take up their version of the
HEALTH Act, which passed the House last March.
|
Florida: Governor Jeb Bush (R) signed into law on August 15
a medical liability reform compromise bill. The most contentious issue--a cap
on pain and suffering--was settled as a $500,000 cap against physicians with a
$750,000 cap for facilities. While there are exceptions to the cap on
non-economic damages, all defendant physicians cannot be held liable for more
than $1 million for non-economic damages in the aggregate regardless of the
number of claimants, whether or not there is an exception to the cap. Go to
www.fmaonline.org/political/index.cfm?pageaction=state_leg&showpage=caps for more details on the new package.
Missouri: Just weeks after Governor Bob Holden (D)
vetoed a medical liability reform measure that would have capped
non-economic damages at $350,000, the state's regulators have
authorized the creation of a state-sponsored medical liability coverage
program. Following a public hearing on the issue in July, Insurance
Director Scott Lakin issued a formal declaration on July 30 that
medical malpractice isn't "reasonably available" for some health-care
providers in the state--the legal trigger for creating a joint
underwriting association to issue coverage for physicians, other
professionals, and facilities.
New Jersey: Princeton Insurance, the largest
malpractice insurer in New Jersey temporarily ended the sale of
policies to physicians on August 21 because the company cannot find
reinsurance, according to the Bergen Record reports (7/23). Princeton
Insurance provided medical liability insurance to 50% of physicians and
85% of hospitals in the state. However, the company's spokesperson
announced that the decision would not affect current policyholders.
Nevada: Governor Kenny C. Guinn (R) signed a bill
in May that was designed to protect physicians when medical liability
insurers decide to leave the market. That new law will soon be put to
the test. Medical Insurance Exchange of California informed
policyholders in July that the company would withdraw from Nevada in
February. MIEC reportedly attributed the move to financial loss and the
failure of the state legislature to revise current malpractice
insurance laws. The new law requires insurers that decide to leave the
market to inform the state 120 days before they withdraw. In addition,
the state insurance commissioner could require an additional 60 days in
cases where affected physicians would not have access to other medical
liability coverage. The bill also prohibits insurers from increasing
insurance premiums because of investment losses.
South Carolina: The Joint Underwriting Agreement
and the Patients Compensation Fund, the two largest medical liability
insurers in the state increased premiums rates by an average of 24.1%
last month. Premium rates for physicians in higher-risk specialties
increased by about 60%. The SC Medical Association said they would
lobby for a $250,000 cap on non-economic damages in response to the
premium rise.
For more information on states that are experiencing a medical liability crisis, there is an Interactive Map of
States in Crisis at www.carh.net. Simply click on the map on
the homepage or on the far left “States in Crisis” button to access the interactive map.
Follow this link for more information and to contact your Senator to push for medical liability reform.
back to top
|