Physicians and Patients are Running out of Time
TRENDS IN UNITED STATES MEDICAL MALPRACTICE PREMIUMS:
Between 1998 and 2002, changes in malpractice premiums were -2.9% versus 20% for Internal Medicine, 1.0% versus 21.9% for General Surgeons and 0.3% versus 14.2% for OB/GYN.
2003 FACTS(1):
· The average medical malpractice jury verdict award increased to $1,000,000.
· The average out-of-court settlement for a medical malpractice claim = $299,000.
· Percentage of all medical malpractice jury verdicts decided in the doctor's favor = 61%.
Nationwide, premium changes for internists, general surgeons and OB/GYN physicians ranged from a 144% increase to a 16% decrease. The vast majority, almost 66%, saw premium increases of 10% or more, about 6% being hit with rates that were higher by 50% or more. Although 20.3% saw no changes in their premiums in 2003, only 2.3% saw lower rates.
Their is a wide range of professional liability insurance annual premium costs across the United States. The highest current premium costs for Internal Medicine ($65,697), General Surgeons ($226,542)and OB/GYNS ($249,196) are in Dade County, FL. The lowest premiums are in Nebraska for Internal Medicine ($2,786),in Minnesota for General Surgeons ($8,717) and in South Dakota for OB/GYN ($14,662).
Four factors have been identified as the principal drivers of escalating United States malpractice premiums and accelerating disruption of the insurance market:
(1) increased frequency of lawsuits
(2) growing jury awards and settlements
(3) declines in insurers investment income
(4) the bankruptcy of some malpractice carriers and the decisions of others to stop writing new policies in some states or withdraw from the business altogether.
For example, between 1995 and 2002, operating expenses, settlements and jury awards for every dollar of premium received have increased from $0.95 to $1.29. Investment earnings as a percentage of premium income has decreased from 49 percent to 18 percent. Overall, in 2002, the U.S. malpractice insurance industry suffered an aggregate industry-wide loss of 11 percent.
(1) Jury Research Verdict and Physician Association of America, 2003; Medical Liability Monitor 2003 rate survey; Health Affairs, Medical Liability Monitor (as of 10/8/02)(http://www.medicalliabilitymonitor.com).
June 14, 2004:
Between 1998 and 2002, changes in malpractice premiums were -2.9% versus 20% for Internal Medicine, 1.0% versus 21.9% for General Surgeons and 0.3% versus 14.2% for OB/GYN.
2003 FACTS(1):
· The average medical malpractice jury verdict award increased to $1,000,000.
· The average out-of-court settlement for a medical malpractice claim = $299,000.
· Percentage of all medical malpractice jury verdicts decided in the doctor's favor = 61%.
Nationwide, premium changes for internists, general surgeons and OB/GYN physicians ranged from a 144% increase to a 16% decrease. The vast majority, almost 66%, saw premium increases of 10% or more, about 6% being hit with rates that were higher by 50% or more. Although 20.3% saw no changes in their premiums in 2003, only 2.3% saw lower rates.
Their is a wide range of professional liability insurance annual premium costs across the United States. The highest current premium costs for Internal Medicine ($65,697), General Surgeons ($226,542)and OB/GYNS ($249,196) are in Dade County, FL. The lowest premiums are in Nebraska for Internal Medicine ($2,786),in Minnesota for General Surgeons ($8,717) and in South Dakota for OB/GYN ($14,662).
Four factors have been identified as the principal drivers of escalating United States malpractice premiums and accelerating disruption of the insurance market:
(1) increased frequency of lawsuits
(2) growing jury awards and settlements
(3) declines in insurers investment income
(4) the bankruptcy of some malpractice carriers and the decisions of others to stop writing new policies in some states or withdraw from the business altogether.
For example, between 1995 and 2002, operating expenses, settlements and jury awards for every dollar of premium received have increased from $0.95 to $1.29. Investment earnings as a percentage of premium income has decreased from 49 percent to 18 percent. Overall, in 2002, the U.S. malpractice insurance industry suffered an aggregate industry-wide loss of 11 percent.
(1) Jury Research Verdict and Physician Association of America, 2003; Medical Liability Monitor 2003 rate survey; Health Affairs, Medical Liability Monitor (as of 10/8/02)(http://www.medicalliabilitymonitor.com).
June 14, 2004:
posted by Bob Coli, MD at 6:53 AM
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