Premium increase causes pain for patients, providers
A new American Medical Association Policy Research Perspective dives into the pain felt by health care providers and patients, as medical liability insurance premiums rise for a sixth year in a row.
These troubling trends have resulted in a peak that is, in some ways, reminiscent of the medical liability crisis experienced in the early 2000s.
According to the AMA’s recent Policy Research Perspective analysis of Medical Liability Monitor data, nearly half (49.8%) of medical liability premiums increased in 2024, compared to just 13.7% in 2018—a staggering escalation. Pennsylvania, where venue shopping is becoming more prevalent, saw 94.1% of its reported premiums rise, with the largest increase at 22.5%.
These increasing premiums create a ripple effect across the health care system, from physicians to the pockets of patients. For health care providers, higher premiums can mean reduced services or even financial infeasibility of maintaining certain practices, particularly in high-risk specialties like obstetrics. As a result, patients in states with sharp premium hikes may face fewer available specialists and increased wait times.
“Whether this upward trajectory will persist in the near future remains to be seen,” the report states. “However, if the trend continues, it could negatively impact patients’ access to care due to a reduction in physician supply”
To read more about the urgency in addressing these disparities and preventing a full-blown medical liability crisis, click here.
Pending bill in Utah balances reform, justice for legitimate claims
A pending medical liability reform bill in Utah is designed to protect physicians while ensuring patients can seek justice. The bill, HB503, is now awaiting the governor’s signature and addresses two growing concerns in rural states like Utah: the retention of doctors amid increasing liability insurance costs.
Representative Katy Hall, sponsor of the bill, became an advocate after hearing from a constituent who was concerned about medical lawsuit abuse.
“He’s worried about losing physicians because of the cost of medical malpractice, and not only the costs in money, but also the costs in just what it costs to the people who are being sued,” Hall said. She also sought to balance that concern with protecting patients in pursuit of justice for legitimate claims.
“I think what we’ve come up with is really good, because we’ve protected those who are legitimately harmed by malpractice. We want them to be taken care of,” Hall said.
The bill takes steps to reduce frivolous lawsuits by requiring plaintiffs to cover defendants’ legal fees if claims lack merit. It also mandates physicians carry at least $1 million in liability insurance. The bill also establishes a method for determining the actual amount of medical damages a plaintiff incurred, so any compensation may accurately reflect the amount of harm that occurred. These measures aim to address fears that physicians, especially in rural areas, might leave the state due to increasing legal risks and the high price of practicing medicine.
In areas with limited health care providers, losing even one doctor could create an access to care crisis. By relieving of the pressures on physicians, HB503 hopes to balance the need for accountability with retaining medical talent—a vital step for ensuring quality care for patients in Utah.
Click here to read more about the initiatives in Utah that seek to reduce medical lawsuit abuse and improve the state’s liability climate.
JAMA details suggested shift in defining reasonable care
In a shift detailed in the Journal of the American Medical Association (JAMA), the American Law Institute (ALI) approved its first-ever restatement specifically focused on medical liability law, known as the Restatement (Third) of Torts: Medical Malpractice.
The ALI is an organization of judges, professors, and practicing attorneys that periodically analyzes existing law and identifies important legal trends. This restatement “attempts to provide descriptive coherence across the 50 different state court systems and to help states clarify and improve their laws.”
This update recommends moving away from reliance on customary medical practices, suggesting a different framework for defining “reasonable care.”
According to the ALI, reasonable care should emphasize the “skill and knowledge regarded as competent among similar medical providers in the same or similar circumstances.” This change suggests that while professional customs may remain a benchmark, juries should assess care against contemporary evidence-based practices when that care is alleged to have been negligent.
This development is based on the notion that “much of what is learned in medical school and training will change during practice,” as described by the authors of the article.
Protect Patients Now will continue to monitor developments when and if state courts start adopting ALI’s recommendations. To read more click here.