ISMIE Mutual Insurance Company
Mutual Interests

Medical Liability Litigation System Takes More Heat

Another study has joined the growing list of credible reports that offer
evidence of a medical liability litigation system gone awry. The Employment Policy Foundation (EPF), based in Washington, D. C., is a research foundation that conducts economic analysis and provides commentary on employment policies as they affect industry and employees. EPF’s analysis found that the medical liability litigation system is a costly and ineffective approach that ultimately fails to protect patients.

Among this study’s findings are that unlimited, uncapped medical liability litigation:

  • Adds up to $97.5 billion annually to the cost of hospital and physician services.
  • Increases the annual cost of employer-provided health insurance by up to
    12.7 percent.
  • Decreased by 2.7 million the number of workers and their families covered by employer provided health insurance.
  • Caused a six percent decline in physicians in the U.S., many of whom work in critical specialty areas.

See the complete study at EPF’s Web site, www.epf.org.

Look West for Liability Reform Model

California’s Medical Injury Compensation Reform Act (MICRA) is the benchmark legislation for protecting patients and health care providers from an out-of-control litigation system. Enacted into law in 1975 during an extreme medical liability crisis, MICRA placed a $250,000 cap on non-economic damages.

The legislation has stood the test of time. In the 28 years since MICRA was enacted, medical liability premiums in California have risen 167 percent compared with 505 percent for the rest of the nation.

ISMIE continues to advocate for reform like MICRA, and urges you to take an active role, too. Contact your lawmakers in Washington and tell them that medical liability reform is needed now.

Senate Majority Leader Bill Frist, M.D. 202-224-3344
Sen. Peter Fitzgerald 202-224-2854
Sen. Richard Durbin 202-224-2152