– January 28, 2010
The Insurance Information Institute has just released a comprehensive look at Medical Malpractice outlining recent developments and industry trends (read more at Medical Malpractice: The Topic). This article breaks down the industry by looking at, among other things, market conditions and national developments.
Key highlights include
- Damage caps can save $54 Billion in medical costs by reducing premiums by about 10%
- Fewer claims are being filed as a result of tort reform, improved patient safety initiatives and better risk management
- Claim values, despite decrease in volume, continue to rise
- Tort costs for medical malpractice claims are greater than other types of tort claims
- Defense and cost containment expenses rose in 2008 to 58.1% of incurred loss, up from 55.1%
- Defensive medicine accounts for 10% of medical care costs
It appears that tort reform measures work to decrease premiums and alleviate the high cost of Malpractice on medical costs.