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May 31, 2007

Caps on Medical Malpractice Cut Doctors’ Insurance Costs

According to a new review from two Alabama universities Caps on medical malpractice damages mean lower insurance premiums for doctors. How these caps affect patient care or cost is less certain. “There’s been substantial controversy over whether caps do what they’re supposed to; reduce malpractice insurance premiums,” said lead author Leonard J. Nelson III, of the Cumberland School of Law at Samford University in Birmingham. “The rates of increase in malpractice insurance premiums are lower in states that have caps.” The study appears in the latest issue of The Milbank Quarterly. More than half of the states have damages caps. Thirteen states and the District of Columbia never passed laws instituting caps and they were ruled unconstitutional in nine others states.

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