MDNews - Greater Kansas

+++ +++ ++++++++++++++++++ + + ++++++++++++++++++ DATA VAULT of Medical Liability Costs The Rising Burden RECENT TREND REPORTS FROM THE AMERICAN MEDICAL ASSOCIATION (AMA) SUGGEST THE NEED FOR REFORM OF THE MEDICAL LIABILITY SYSTEM. E STIMATES VARY, BUT there is widespread consensus among policymakers, physicians and consumers alike that medical liability costs contribute to the rising cost of health care. A recent analysis by the Harvard School of Public Health found that medical liability costs — more than $55 billion per year — accounted for approximately 2.4% of annual health care spending in the United States in 2008. The AMA recently released several new reports that shed light on the extent of the damage caused by litigation, whom it affects and which reforms could reduce costs and improve access to care for patients. Know the Numbers Data from the AMA's reports show signifi cant increases in medical liability insurance premiums and litigation costs during the last decade: + In 2010, the average indemnity paid to a medical liability claimant was $331,947. + The average legal costs of defending a physician in a liability claim rose 62.7% between 2001 and 2010, reaching $47,158. + These claims are expensive, even when claimants receive no payment. In 2010, more than 60% of closed claims against physicians were dropped, withdrawn or dismissed from court, but the average cost of defending them was $26,851. + Nearly 61% of physicians age 55 and older have suffered at least one lawsuit. + More than 40% of physicians now carry liability insurance policies with limits exceeding $1 million. + More than 50% of OB/GYNs are sued at least once before they reach age 40, and 90% of general surgeons age 55 and older have been sued. Although these stat istics have resulted in soaring liability insurance premiums for many physicians, the AMA notes that patients often see most of their won compensation consumed by substantial court costs. Based on these numbers, many experts conclude that the current medical liability system does not benefit patients with legitimate grievances, hampers physi- cians in performing their duties and contributes to the rising overall cost of health care. Hope for the Future In an ef fort to curtail the rising cost of liability insurance for physicians, the AMA has endorsed H.R. 5, the "Help Effi cient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act of 2011" (now known as the "Protecting Access to Healthcare Act"). Passed by the House of Representatives in March 2012 and, as of this writing, awaiting a Senate vote, the legislation introduces a number of reforms, including conditions for health care liability lawsuits, a statute of limitations for claims and caps on noneconomic damages. According to the AMA, these reforms have already been proven effective in similar state-level legislation in California and Texas. In fact, thanks in part to tort reform, an OB/GYN in California can pay less than one-third the amount for liability insurance that he or she would pay for liability insurance in New York. As legislators look for new ways to make health care affordable, physicians in other states may be able to enjoy similar advances. ■ MDNEWS.COM ■ MD NEWS Greater Kansas | 15

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