One year after medical malpractice caps became the law in South Carolina, a recent article in Greenville News reported that med mal insurance premiums are still going up. The article, written by Liv Osby noted that the caps became law in July of 2005. Pain and suffering awards in South Carolina are now limited to $350,000. Supporters of the caps argued that they were necessary to reduce high jury awards, which, they claim, lead to soaring malpractice premiums, and, doctor flight. So, a year later in South Carolina....
Malpractice premiums continue to go up. But, according to Gerald Harmon, M.D., President of the South Carolina Medical Association, the increased premiums were expected. According to Dr. Harmon, "We did not expect to see an immediate reduction in the rates. We are hoping to see a flattening of the rates and perhaps in the future, lower rates." Hoping to see a flattening of rates? Lower rates perhaps in the future? Med Mal caps proponents have consistently screamed a very simple formula: caps = lower verdicts and lower premiums. So why does Dr. Harmon sound so cautious? Because he probably knows that premiums will continue to go up. They will continue to go up for a very simple reason. The insurance companies made bad investments decisions the last several years. Returns weren't what they hoped for. Quick fix? Point the finger at trial lawyers and say that runaway verdicts are causing doctors to flee the state and increasing insurance costs. But, as more data comes in, it is increasingly clear the propaganda spread by "tort reformers" simply isn't true.
Some examples from South Carolina:
Tort Reform claim: high premiums cause some doctors to leave the state, and others to stop performing high-risk procedures.
Fact: According to the State Budget and Control Board Office of Research and Statistics, South Carolina gained 800 doctors between 2000 and 2005, with gains in obstetrics, neurosurgery and emergency medicine, traditionally three high risk specialties.
Tort Reform Claim: med mal claims are increasing.
Fact: According to a Public Citizen analysis, between 1991 and 2004, med mal suits dropped by nearly 10%.
Tort Reform Claim: there are more and more multi-million dollar verdicts in med mal cases.
Fact: Between 1991 and 2004, the number of multi-million dollar payouts declined 56%, but during the same time period, premiums continued to increase!
Sadly, the insurance industry/tort reform movement continues to do a far superior job communicating their message than trial lawyers. As a result, caps get shoved down our throats by the insurance industry, despite increasing evidence that caps have little if any impact on premiums.
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