Lawyers see claims dropping, malpractice rates growing
Posted: Wednesday, March 23, 2005
DES MOINES, Iowa (AP) -- While malpractice claims paid in Iowa shrank in 2003, insurance rates paid by doctors continued to grow, according to a study released Tuesday by the Iowa Trial Lawyers Association.
The study found that claims paid in malpractice cases in Iowa in 2003 amounted to $5,650.03 per doctor, down from the $6,904.04 level the previous year.
At the same time, malpractice insurance rates paid by doctors averaged $13,902.63 in 2003, up 13 percent from $12,265.45 in 2002. The data was compiled by Robert Hunter, a prominent insurance actuary who served as Texas insurance commissioner in the 1980s.
"This data shows that there is little or no correlation between medical malpractice lawsuits and what insurers are charging Iowa doctors for medical malpractice insurance," said Scott Brown, executive director of the trial lawyers' group. "Those Iowa lawmakers who are pushing to cap quality of life damages in medical malpractice cases are misdiagnosing the patient."
The Iowa House is set to consider a bill that would cap non-economic damages in malpractice lawsuits at $250,000.
"Capping claims won't reduce premiums, but it will hurt those families who have been devastated by medical negligence," Brown said. "Legislators need to start looking at insurance reform measures to lower medical malpractice insurance costs for Iowa doctors."
Joanne Doroshow, spokeswoman for the Center for Justice and Democracy, said tighter regulation of the insurance industry would better control rising premiums than limiting jury awards, and she rejected suggestions that a flood of lawsuits has caused the problem.
"Most people are not suing," Doroshow said.
Though the cap on jury awards has won committee approval, House Majority Leader Chuck Gipp, R-Decorah, said it has no future in this year's closely divided Legislature. The Senate is split at 25-25 and Republicans hold a narrow 51-49 majority in the House.
"What people need to understand is that this is a problem," Gipp said.
He said lawmakers have agreed to put together a committee to study the issue over the summer, and come back with recommendations for the next legislative session.
The study found that claims paid in malpractice cases in Iowa in 2003 amounted to $5,650.03 per doctor, down from the $6,904.04 level the previous year.
At the same time, malpractice insurance rates paid by doctors averaged $13,902.63 in 2003, up 13 percent from $12,265.45 in 2002. The data was compiled by Robert Hunter, a prominent insurance actuary who served as Texas insurance commissioner in the 1980s.
"This data shows that there is little or no correlation between medical malpractice lawsuits and what insurers are charging Iowa doctors for medical malpractice insurance," said Scott Brown, executive director of the trial lawyers' group. "Those Iowa lawmakers who are pushing to cap quality of life damages in medical malpractice cases are misdiagnosing the patient."
The Iowa House is set to consider a bill that would cap non-economic damages in malpractice lawsuits at $250,000.
"Capping claims won't reduce premiums, but it will hurt those families who have been devastated by medical negligence," Brown said. "Legislators need to start looking at insurance reform measures to lower medical malpractice insurance costs for Iowa doctors."
Joanne Doroshow, spokeswoman for the Center for Justice and Democracy, said tighter regulation of the insurance industry would better control rising premiums than limiting jury awards, and she rejected suggestions that a flood of lawsuits has caused the problem.
"Most people are not suing," Doroshow said.
Though the cap on jury awards has won committee approval, House Majority Leader Chuck Gipp, R-Decorah, said it has no future in this year's closely divided Legislature. The Senate is split at 25-25 and Republicans hold a narrow 51-49 majority in the House.
"What people need to understand is that this is a problem," Gipp said.
He said lawmakers have agreed to put together a committee to study the issue over the summer, and come back with recommendations for the next legislative session.
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