In a presentation made to the Ohio Medical Malpractice Commission on July 15, Robert Walling of Pinnacle Actuarial Resources Inc. stated that two common steps have helped reign in the cost of medical malpractice insurance in the six states viewed as having avoided the Med-Mal crisis - Wisconsin, Indiana, Louisiana, Colorado, New Mexico and California. These steps are limiting damage awards and attorney contingency fees.
Earlier this year, Pinnacle reported that a patient compensation fund (PCF) envisioned by SB281 could reduce the potential benefits of capping non-economic damages by opening an opportunity for cost-shifting between economic and non-economic damages.
The states with a positive outlook have also established medical claim review boards, repealed collateral source rules and taken other steps, including addressing joint and several liability issues and statutes of limitation, according to Mr. Walling. He further stated that PCFs tend to provide money to injured victims above cap limits and that the states have taken different approaches to setting funding requirements for their PCFs. In order to be effective, however, Mr. Walling emphasized that the funds must be actuarially sound.
Ohio Department of Insurance Director Ann Womer Benjamin said that she found the Pinnacle report encouraging, since it demonstrates that the establishment of a PCF, in cooperation with other measures, has helped stabilize insurance policy costs in other states.
It was noted, however, that the ability to find affordable insurance coverage, once a claim has been filed, is challenging for physicians. AMC/NOMA representatives are scheduled to meet with Womer Benjamin at the end of July.