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Do medical malpractice suits contribute to rising health insurance costs?


Women may face a shortage of OB/GYNs in the future

The New York Times reported today that President Obama may be considering reigning in medical malpractice suites as a part of his health care reform program.. Mr. Obama will address the American Medical Association (AMA) in Chicago today.

The AMA has long advocated protecting doctors from lawsuits filed on behalf of patients who claim their doctors actions, or in some cases, inaction have caused them to suffer an injury.

Democrats generally favor controlling the cost of medical malpractice insurance and argue that this has to be a part of health care reform. Former Senator Tom Daschle reiterated that position in a Monday interview on the CBS Early Show.

There is considerable debate as to what impact, if any, medical malpractice costs have on the cost of health insurance. Republicans and the AMA argue that reducing the cost of medical malpractice insurance and limiting jury awards in malpractice suits are key to passing any health care reform.

On the other hand, Democrats and trial lawyers generally argue that putting limits on medical lawsuits would unfairly injure patients who have already been injured by bad or ineffective medical care.

One study published by the Robert Wood Johnson Foundation in December 2008 analyzed the effect of tort reform in certain states on health insurance premiums. The conclusion of their study, which followed both private and government employee groups with 200+ employees, was that tort reform had little or no impact on health insurance premiums.

On the other hand, as early as 2004 a study conducted by John Hopkins Hospital reported that the number of graduates of U.S. medical schools who enter OB/GYN had dropped 23% since 1996. Malpractice insurance for OB/GYNs is reported to have one of the highest premium for medical malpractice, with some areas reporting premiums of $100,000 per year for OB/GYN coverage. Premiums in major metropolitan areas can be as much as $250,000 per year.

Because of these high premiums, especially on young doctors just starting out in practice, many states are reporting growing shortages of OB/GYN doctors. In some states it has reached a crisis level..  The Journal of Obstetrics & Gynecology reported in June, 2005 that there was serious concern that the supply of doctors practicing obstetrics would be far below the number reasonably needed to care for pregnant women.

Should controlling the cost of medical malpractice be a part of health care reform? Without any definitive information as to the real impact, it is difficult to say.   Logic would seem to indicate it is something that should at least be considered.

 

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By

Health Care Examiner

Sheila Guilloton is a licensed health insurance specialist. She works with individuals and small business owners in 9 states, assisting them in...

Comments

  • J Jones MD, PhD 2 years ago
    Report Abuse

    I'm an Ob/Gyn in practice at an inner city hosptial. There is no question that medical malpractice increases the cost of medicine. Imagine losing your life's savings for a single error. Doctors almost always practice defensive medicine and society bears the cost.

    I also do chart reviews for my state. These are significant cases and almost every one is accompanied by a lawsuit. Yet only about 20% of these "worst of the worst" cases represent real malpractice.

    We have to get the huge profit motive out of legal system. There is simply no reason if Mary Smith needs 10 million dollars to compensate her injuries, that her lawyer gets at least 30% of it.

    It's not a jury of our peers, medical experts are grossly overpaid paid to testify and the material is complex and confusing.

    There are some equitable solutions that protect the patients and help remove bad physicians.

    Trial lawyers will not allow reform.

    Ultimately profit perverts justice.

  • Chris Wilcox 2 years ago
    Report Abuse

    I agree but when the goverment has 3 branches (executive 1 lawyer, Judidicial 12 lawyers, and legislative 40% or more lawyers ) trying to reduce the ambulance chasers is like letting the fox control the hen house. Only the public can push for this. Lawyers are a main part of the problem. I trully believe a doctor who dedicated many years in education and time deserves alot of money. I cannot say the same for lawyers or accounts though

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