Much has been made about Texas medical malpractice reform ever since Governor Rick Perry first mentioned the topic during his presidential campaign. The law, which caps the amount of non-economic damages available in suits against doctors and surgeons, is oft championed as keeping physicians in Texas and driving down the costs of healthcare and malpractice insurance premiums.
Some groups, however, doubt the effectiveness of the reform. For instance, Public Citizen released a recent report claiming that since 2003 when the caps were enacted, both healthcare costs and medical malpractice insurance premiums have risen in Texas at a rate higher than the national average. They contend that the only winners are insurance companies and physicians.
On the other hand, according to the chairman of the Texas Alliance for Patient Access, his 300-doctor clinic has saved a ‘substantial amount’ on medical liability insurance premiums and used that money to improve patient services.
Part of the reason the sides disagree on the effectiveness of the Texas legislation is that any savings that doctors and clinics pass on in the name of improved patient services is difficult to track and quantify. Moreover, improvement of patient services and a decrease in the cost of healthcare are two separate goals that are often muddled together by politicians and the general public.
In reality, it is quite possible that the legislation has reduced Texas medical malpractice insurance premiums, allowing physicians to use those savings to improve the quality of their medical practices and patient services, while not necessarily lowering the overall cost of healthcare to patients. Whether that effect is desirable and worth the limitations that the caps place on medical malpractice plaintiffs is a policy decision that the legislators, and their constituents, should decide.
Malpractice Insurance Agency works with physicians and surgeons in Texas. Our goal is to increase your liability coverage while reducing costs and premiums. As an independent broker, we can contact the top malpractice insurance companies in your state directly on your behalf to see whether better coverage options are available to you. Contact us at 800-217-4020 or request quotes online.
