Medical Malpractice - Does it Really Affect Healthcare Costs?

As the healthcare debate intensifies, many ininsurance, the same way you pay monthly
Congress are calling for a tightening of medicalpremiums for automobile insurance. In recent
malpractice awards. There is currently no nationalyears, these premiums have been on the steady
restrictions to how much can be awarded byrise, and many have been quick to attribute this
juries in cases of medical malpractice, whichrise in costs to high jury verdicts in malpractice
occasionally results in awards of $10 million orsuits.
above. Some lawmakers argue that these awardsAccording to a 2005 article in the Boston Globe,
result in higher costs for malpractice insurance,the rising malpractice premiums are due to a lack
which further drive up the costs of healthcare.of investment returns, rather than the cost of
They propose putting a $250,000 cap on jurythe lawsuits themselves. Malpractice insurance
awards in such cases, as a way of keepingcompanies also make money by investing in the
payouts manageable. Opponents, however, saystock market, and when their stock portfolios
that this will not affect healthcare costs at largearen't making money, they have to look to other
and would instead punish those who are alreadyrevenue streams to compensate.
injured.Taken as a whole, malpractice awards have been
The Cost of Jury Awardsrising in accordance with the overall costs of
While seeing large awards granted to the victimshealthcare. The difficulty with putting a cap on
of malpractice may seem alarming, the amountmalpractice awards is that "pain and suffering" is
awarded by juries is actually a small drop in thedifficult to quantify. While it's easy to come up
very large bucket of overall healthcare costs.with a price tag for the medical costs, it's difficult
Doctors' groups often fight for limits onto ascribe a dollar-and-cents compensation for
malpractice, but studies have shown that the costsomeone who has lost an arm or will never be
of malpractice insurance is actually not entirelyable to walk again. Many healthcare specialists
tied to malpractice verdicts, and that the verdictsargue that putting a cap on awards will actually
aren't responsible for the rise in malpracticehurt the people most injured by shoddy
insurance premiums.healthcare.
Doctors almost always have malpractice insuranceIf you have any questions about healthcare
which specifically covers the costs of malpracticelitigation, visit the Philadelphia medical malpractice
suits. They pay monthly premiums for thisattorneys of Lowenthal & Abrams, P.C.