Medical Malpractice Insurance Tim Capps

Objectives Health care costs and malpractice premiums have increased Health care costs and malpractice premiums have increased Establish correlation between rate increases Establish correlation between rate increases

Rising Healthcare Costs Overall Healthcare Expenditures:* Overall Healthcare Expenditures:* Year Amount (billions of dollars) , ,400 *Source: Centers for Medicare & Medicaid Services

Rising Healthcare Costs

7.9% annual increase* 7.9% annual increase* Inflation rate – 3.5%** Inflation rate – 3.5%** 1980 – 7.9% of GNP spent on health care* 1980 – 7.9% of GNP spent on health care* 2001 – 14.1%* 2001 – 14.1%* *Centers for Medicare and Medicaid Services ** **Bureau of Labor Statistics

Rising Healthcare Costs “The cost of health care is rising rapidly, and that burdens our families, it hurts our small businesses, it makes it harder for the job creators to expand the job base. Too many Americans are left struggling to find affordable health care.” “The cost of health care is rising rapidly, and that burdens our families, it hurts our small businesses, it makes it harder for the job creators to expand the job base. Too many Americans are left struggling to find affordable health care.” *President George W. Bush – January 5, 2005

Rising Malpractice Insurance Costs Malpractice Insurance Malpractice Insurance Designed to protect physicians from being sued for medical malpractice by patients and/or patient’s families Designed to protect physicians from being sued for medical malpractice by patients and/or patient’s families

Rising Malpractice Insurance Costs OB/GYNs: 100% premium hike* OB/GYNs: 100% premium hike* Nevada: Quadrupled rates in 2002** Nevada: Quadrupled rates in 2002** Connecticut: $100,000 - $150,000, up from $15,000 + Connecticut: $100,000 - $150,000, up from $15,000 + *Mark DeFrancesco, Medical Director of Physicans for Women’s Health **Joelle Babula, writer for Las Vegas Review Journal +Women’s Health Weekly

Rising Malpractice Insurance Costs Illinois: 160 physicians forced to retire or relocate in two counties * Illinois: 160 physicians forced to retire or relocate in two counties * Missouri: Doctors looking at Kansas ** Missouri: Doctors looking at Kansas ** *President George W. Bush – January 5, 2005 **Julius Karash, The Kansas City Star

Correlation Liability Surcharges Liability Surcharges $10-$15 per visit* $10-$15 per visit* $500 per pregnancy** $500 per pregnancy** Move practices elsewhere + Move practices elsewhere + *Michael Romano – Modern Healthcare **Women’s Health Weekly + Julias Karash, The Kansas City Star

Correlation “It’s a system that’s just not fair. It’s costly for doctors; it’s costly for small businesses; it’s costly for hospitals; it is really costly for patients.”* “It’s a system that’s just not fair. It’s costly for doctors; it’s costly for small businesses; it’s costly for hospitals; it is really costly for patients.”* *President George W. Bush – January 5, 2005