You asked (1) whether Connecticut is experiencing availability or affordability problems in the medical malpractice insurance market, (2) what percentage rate increases have doctors experienced and have any particular specialties been adversely affected, (3) has the Connecticut General Assembly contemplated any legislative action to address the problem, and (4) what steps did Connecticut take to address the medical malpractice insurance problem in the 1980s.

SUMMARY

Connecticut is experiencing both market contraction and rate increases in the medical malpractice insurance market.

No legislation directly addressing the medical malpractice problem has been offered but members and the Public Health and Insurance committees have begun exploratory activity.

Rates for 2002 have increased on average 20% and for certain specialties, 40%.

In 1986 and 1987, Connecticut enacted a series of laws to reform its tort liability system, including medical malpractice lawsuits.

MEDICAL MALPRACTICE INSURERS

Of six insurers underwriting medical malpractice liability in the state, three, St. Paul, Legion, and MIIX, have withdrawn from the market. Legion and MIIX are currently in financial rehabilitation under the supervision of the insurance commissioner. The Connecticut Medical Insurance Company (CMIC), American Healthcare, Trick Insurance Exchange, and Proselect remain.

Rate Increases

In 2001, American Healthcare filed for a 33. 2% rate increase, Truck Insurance Exchange a 30. 0% increase, Proselect 8. 0%, MIIX 25. 5%, and CMIC 16. 0%.

CMIC a physician-owned insurer, holds about 60% of the medical malpractice insurance market. Beginning January 1 2002, CMIC filed an overall 20. 5% increase for medical malpractice liability rates. The increase was lower than the 36. 5 to 63. 3% increase its actuarial consultant Tillinghast-Towers Perrin recommended. The rates were reduced by investment income at an assumed 7. 5% rate.

CMIC rate increases in psychiatry, family general practice, and family practices with OB-GYN were 40. 0, 40. 1, and 40. 0%, respectively. Neurosurgery and OB-GYN rates increased 22. 5%.

LEGISLATION

Several members of the Connecticut General Assembly and the joint Public Health and Insurance committees have begun preliminary inquiries about the availability and affordability of medical malpractice insurance in the state. No legislation directly affecting medical malpractice insurance was enacted during the regular 2002 legislative session. But, sHB 5715, requiring hospitals and outpatient surgical facilities to report to the Department of Public Health on injury caused by or associated with medical management that results in death or measurable disability may affect future medical malpractice lawsuits.

PRIOR LEGISLATIVE ACTION

In 1986 and 1987 Connecticut enacted a series of laws intended to reform its tort liability system, including medical malpractice. The reforms included limiting contingency fees; requiring periodic payments for future damages over $ 200,000; reducing damage awards by the amount of any collateral source payment; and requiring plaintiffs in medical malpractice lawsuits to file a certificate of "good faith belief" that, based on reasonable inquiry, grounds for the lawsuit exist. The reforms also authorize certain health care providers that meet certain standards to testify as medical experts in medical malpractice lawsuits; make anyone who files a lawsuit or asserts a defense, without probable cause, liable for double damages to the other party; and requires juries to determine the percentage of negligence attributable to people who have settled with or been released by plaintiffs (PA 86-338 and PA 87-227).

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