HHS joins call for national tort reform

Litgation is behind rising insurance premiums, says a report from the Dept. of Health and Human Services.

By Damon Adams, AMNews staff. March 24/31, 2003.

A federal report shows medical liability problems have worsened over the past year, prompting physicians to close or limit practices, or flee to states with lower insurance rates. On the same day the government issued its report, an AMA analysis said six new states are in a liability crisis: Arkansas, Connecticut, Illinois, Kentucky, Missouri and North Carolina.

Physicians said the report and AMA analysis, both released March 3, show the growing magnitude of the medical liability problem and the need for legislation.

"This is the first time a president, as well as the administration, has pointed out clearly the enormous cost to the patients and to our society of this broken tort system," said AMA President Yank D. Coble Jr., MD. "States are obviously continuing their aggressive action [for reform]. We're supporting all their efforts to do that."

The U.S. Dept. of Health and Human Services report details how the crisis has worsened since the agency reported on the problem in July 2002.

It blames the crisis on litigation, pointing to a rise in the amount of jury awards and settlements. For example, in 1991 there were 298 payments of $1 million or more reported to the National Practitioner Data Bank; in 2002 there were 806.

Insurance premiums have risen rapidly in recent years, especially for internists, general surgeons and ob-gyns, according to the report, "Addressing the New Health Care Crisis."

"The scope and intensity of the crisis have increased," the report said. "More doctors, hospitals and nursing homes in more states are facing increasing difficulty in obtaining insurance against lawsuits, and, as a result, more patients in more states are facing greater difficulty in obtaining access to doctors."