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In the Courts-Legal Resources
MSMA Applauds Supreme Court Ruling on Tort Reform
The Missouri State Medical Association, the state’s largest physician organization, applauds today’s Missouri Supreme Court ruling that keeps intact Missouri’s $350,000 cap on non-economic damages in medical liability lawsuits.
In doing so, the court upheld years of prior decisions which supported tort reform measures. Although the court held the cap was unconstitutional to plaintiffs whose injuries occurred before the law was enacted, it did not find the reforms, including the cap, violated any other section of the Constitution.
The MSMA, partnering with the Litigation Center of the American Medical Association and state medical societies, filed an amicus brief in support of a lower court ruling that likewise upheld the cap.
Missouri had been mired in a professional liability insurance crisis when the Missouri General Assembly passed a package of common-sense tort reforms, including the cap on non-economic damages, in 2005. Since that time, the liability insurance premiums paid by physicians is approximately 17% less than in states that have no cap. This has allowed physicians to keep their practices open in Missouri, making health care more affordable and accessible.
MSMA President Thomas Sparkman, MD, stated, “The Supreme Court’s decision today ensures Missouri will be a state where physicians want to practice, and that makes Missouri a healthier place to live.”
Database Created from Lawsuit Decision
On Tuesday, October 27, New York Attorney General Andrew Cuomo announced the creation of a nationwide database to establish out-of-network reimbursement rates. The announcement ends a industry-wide probe into the insurance companies use of the flawed Ingenix database, which set reimbursement artificially low. The new database will be run by a newly-created nonprofit, Fair Health, Inc. It will be developed in conjunction with five New York-based universities. Cuomo expects the database to be operational within a year.
The attorney general’s investigation into the Ingenix system parallels the lawsuit AMA v. United HealthCare, of which MSMA is a named plaintiff. Hopefully, the announcement will facilitate a conclusion to the case, which is in the final stages of settlement. In January, United agreed to pay $350 million to settle various class actions brought against it concerning reimbursement rates. The judge has not yet approved that settlement.
Number of Malpractice Claims at an All-Time Low
The Missouri Department of Insurance, Financial Institutions and Professional Registration issued a report on Sept. 8, 2009, which details the number of malpractice claims filed in 2008. According to the report, 1,215 new malpractice claims were filed last year – a ten-year low. At the end of 2008, there were 3,017 open malpractice cases, which is the lowest number of pending cases in the 30 years the Department has been collecting data. The average claim was $202,612, which is up slightly compared to 2007.
The most common allegations in malpractice cases were poor surgical outcomes, non-surgical treatment, diagnostic errors, and patient safety. The full report can be read on the Department’s website.
Much of this can be attributed to the 2005 tort reform legislation spearheaded by MSMA.
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