Right Problem, Wrong Solution for Malpractice
Roanoke Times & World
February 4, 2004

First, do no harm.

That's one of the cardinal rules of medicine.

The same rule should apply to Sen. Steve Newman's plan to lower Virginia's cap on malpractice payouts for pain and suffering as a solution to the medical liability insurance difficulties.

The Newman bill to cut Virginia's $1.7 million ceiling on compensation for noneconomic damages to $250,000 would penalize the victims of medical negligence and incompetence, causing the greatest harm to those who typically deserve and need the largest awards - children and young adults who may be in a wheelchair or suffer debilitating pain for 40 or 50 years.

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Though the insurance industry claims payouts have ballooned, consumer groups report that payouts per doctor have been relatively stable for almost 20 years. Americans for Insurance Reform says inflation-adjusted payouts fell in 2000-02.

In addition, malpractice suits are not the burgeoning business insurers suggest they are. Only 10 percent to 20 percent of victims of medical errors sue, and fewer than a third of those obtain any money, according to a report by the Robert Wood Johnson Foundation.

Legislators are not without options. Insurers' exemption from most federal oversight could be repealed and their financial practices regulated. Virginia could emulate California, which regulates malpractice insurers' rates. Changes could be mandated in insurers' rating systems to reward good doctors. A stronger discipline system could weed out physicians who raise rates for everyone.

For a copy of the complete article, contact AIR.