Are caps the answer to the malpractice crisis?(PRO & CON)

YES

There are multiple fires burning in our health care system, but the malpractice insurance crisis is among the most serious, and ironically, the one that can be most easily remedied. Caps on noneconomic damages are a critical first step.

Today, half the neurosurgeons, and one-third of obstetricians, orthopedists, and emergency room physicians report a claim every year. Though 80% of all these claims close without payment, they cost nearly $25,000 each.

Meanwhile, the cost of paid claims is skyrocketing. The median jury award has doubled since 1997, and the average malpractice jury award exceeds $3.5 million.

As a result, over the past 3 years insurers have paid out $1.40 in claims losses and expense for every dollar of premium. Accordingly, rates have risen 15%-20% per year for the past 3 years, but this average figure is much lower in states with effective tort reform and much higher in states without it.

And very little of this has to do with true medical malpractice. In fact, the Harvard Medical Practice Study found that there is no relation between the presence or absence of medical negligence and the outcome of malpractice litigation. The only variable that predicts outcome is degree of injury.

There are also a number of assiduously cultivated myths about insurance companies. But first, please take note that two-thirds of physicians are insured by mutual or reciprocal insurers that are owned by the policyholders themselves, not shareholders. In addition, insurance is a heavily regulated industry and in most states, rates require the approval of the department of insurance before they can be implemented.