MALPRACTICE;

OLR Research Report


January 31, 2003

  

2003-R-0090

MEDICAL MALPRACTICE INSURANCE RATES

By: Jerome Harleston, Senior Attorney

In states that limit noneconomic damage awards, you want a comparison of medical malpractice insurance rates between states that regulate medical malpractice insurance rates and those that do not.

Twenty-six states limit noneconomic damages in medical malpractice cases. Of these, 12 require the prior approval of rates, 10 require rates to be filed before they are used, two allow insurers to use and later file their rates within a specified period, one requires an informational filing, and one sets rates.

In prior approval states, rates must be filed with and approved by the state insurance commissioner before they can be used. Approval can be by means of a deemer provision, which indicates approval if rates are not denied within a specified number of days. In file and use states rates must be filed prior to their use. Specific approval is not required, but the insurance commissioner retains the right of subsequent disapproval.

The Medical Liability Monitor’s (MLM) 2002 medical malpractice rate survey indicates that the average cost of malpractice insurance for internists nationally rose by 24% from July 1, 2001 to July 1, 2002. In 2000-01 rates rose 10. 1%. General surgeons’ rates increased an average 25% in 2002 and 10. 3% in 2001. The average increase in rates for obstetricians/gynecologists climbed 9. 2% in 2001 and 19. 6% in 2002.

For 19 of the states that cap noneconomic damages, the MLM found that in 2002 the average premium for internists ranged from $ 4,023 to $ 10,098, for general surgeons, $ 10,896 to $ 35,915, and for obstetricians/gynecologists $ 17,786 to $ 55,084. In Table 1, we show the states with caps, identify their type of rating law and give an estimate of the average premium increase in 2002.

Table 1: Medical Malpractice Rates in States that Cap Damages

Table 1: Medical Malpractice Rates in States that Cap Damages

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