Tort reform: an idea whose time has come -- again

AMA Leader Commentary. By Richard F. Corlin, MD Feb. 18, 2002.

AMA LEADER COMMENTARY

A few words about current events in medical practice

SEE ARCHIVES

A message to all physicians from AMA President Richard F. Corlin, MD.

Those of us of a certain age know firsthand how history repeats itself. Exhibit A is the issue of liability insurance.

Twenty-seven years ago, several of our states faced a crisis. Liability insurance rates were skyrocketing, and carriers were either abandoning markets where they couldn't make an adequate profit or they were declared insolvent and shut down by insurance commissioners. Many physicians -- including a variety of specialists -- just couldn't afford the premiums.

Back then, there were several results. Some states passed tort reform legislation. Occurrence-type insurance was replaced by claims-made coverage. Many physicians formed mutual professional liability insurance companies to replace the commercial stock insurers that had to charge higher premiums to provide profits to their shareholders.

In some places the effect has been dramatic -- 36 states have abolished joint and several liability. Supreme courts in 21 states and the District of Columbia have upheld tort reforms. And 26 states have imposed limits on noneconomic or total damages.

But now, as Yogi Berra might say, it's déjà vu all over again. We find ourselves once again in an environment in which liability insurance rates are skyrocketing and carriers are either dropping out of markets where they can't make an adequate profit or are being declared insolvent and being shut down by insurance commissioners. And many physicians -- as well as a variety of specialists -- just can't afford the premiums. [...]