Malpractice Crisis Coming to Light
The Courier -Tribune (Asheboro, NC)
March 23, 2003

ASHEBORO - The medical malpractice "crisis" has come to the attention of the North Carolina General Assembly.Randolph County's State Sen. Jerry Tillman said lawmakers are feeling great pressure to do something about skyrocketing medical costs.

Asheboro-based Dr. Robert Brown said something has to be done to control escalating malpractice insurance premiums or doctors are going to start leaving the state. Local attorney Bob Crumley said both Tillman and Brown have legitimate points but proposed legislation would do little more than unfairly restrict victims' rights.

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The Americans for Insurance Reform produced a study that reports claims that premiums have escalated due to increased jury awards are false. The study indicates that payouts, including all jury awards and settlements, have been extremely stable and virtually flat since the mid-1980s.

Premium increases are more directly tied to the state of the economy than to jury awards, said the report.
"Insurance premiums (in constant dollars) increase or decrease in direct relationship to the strength or weakness of the economy, reflecting the gains or losses experienced by the insurance industry's market investments and their perception of how much they can earn on the investment 'float' (which occurs during the time between when premiums are paid into the insurer and losses paid out by the insurer) that doctor's premiums provide them."

What mandated caps do, said Lexington-based attorney Jim Snyder, is restrict victim rights. He called efforts to place the blame for rising medical costs on jury awards and attorneys "scapegoating."

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For a copy of the complete article, contact AIR.