Medical Malpractice Insurance

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Medical Malpractice Insurance

• Tim Capps

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Objectives

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

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Rising Healthcare Costs

• Overall Healthcare Expenditures

Year Amount (billions of dollars)
1980 216
1985 375
1990 612
1995 876
1997 966
1998 1,016
2001 1,400
Source Centers for Medicare Medicaid Services
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Rising Healthcare Costs
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Rising Healthcare Costs

• 7.9 annual increase
• Inflation rate 3.5
• 1980 7.9 of GNP spent on health care
• 2001 14.1

Centers for Medicare and Medicaid Services
Bureau of Labor Statistics
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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.

President George W. Bush January 5, 2005
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(No Transcript)
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Rising Malpractice Insurance Costs

• Malpractice Insurance
• Designed to protect physicians from being sued
  for medical malpractice by patients and/or
  patients families

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Rising Malpractice Insurance Costs

• OB/GYNs 100 premium hike
• Nevada Quadrupled rates in 2002
• Connecticut 100,000 - 150,000, up from 15,000

Mark DeFrancesco, Medical Director of Physicans
for Womens Health
Joelle Babula, writer for Las Vegas Review
Journal
Womens Health Weekly
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Rising Malpractice Insurance Costs

• Illinois 160 physicians forced to retire or
  relocate in two counties
• Missouri Doctors looking at Kansas

President George W. Bush January 5, 2005
Julius Karash, The Kansas City Star
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Correlation

• Liability Surcharges
• 10-15 per visit
• 500 per pregnancy
• Move practices elsewhere

Michael Romano Modern Healthcare
Womens Health Weekly
Julias Karash, The Kansas City Star
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Correlation

• Its a system thats just not fair. Its costly
  for doctors its costly for small businesses
  its costly for hospitals it is really costly
  for patients.

President George W. Bush January 5, 2005
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(No Transcript)