Economy Blamed for High Malpractice Rates
Wyoming Tribune-Eagle
February 7, 2003


A study of medical malpractice insurance in Wyoming over the past 30 years links higher premiums to the economy, not lawsuits.

Conducted by Americans for Insurance Reform, the report concludes that the legal system is not to blame for rising premiums doctors pay for coverage. Instead, rates are influenced by the strength of the national economy, or lack thereof, rather than increases or decreases in the amount companies pay in jury awards, settlements or other costs.

The analysis also found that, adjusted for inflation, payouts per doctor dropped in Wyoming from 2000 to 2002.

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Joanne Doroshow, executive director of Americans for Insurance Reform, based in New York, said Wyoming has had the same pattern in rates as just about every state the group has examined including states that don't claim to have a malpractice insurance crisis.

The report states that the large rate increases doctors have seen in Wyoming are in sync with the economic cycle of the insurance industry and that in the past two years, rates have spiked while payouts have fallen.

As for potential insurance reform in Wyoming, Doroshow said her organization supports actions that would help spread insurance rate increases for high-risk physician specialties among a large group of specialties or allow the state to require a hearing any time an insurance company requests a rate increase above 15 percent.

For a copy of the complete article, contact AIR.