Liability pressures continue climbing, AMA warns
New research from the American Medical Association underscores the continuing financial and professional strain the nation’s broken medical liability system places on physicians and the broader health care system.
Two new reports examine both medical liability claim frequency and rising insurance premiums, which have now increased nationwide for seven consecutive years.
AMA President Dr. Bobby Mukkamala said that while physicians understand medicine carries inherent risk, “a claim does not mean a mistake was made,” adding that most cases are ultimately dropped, dismissed, or never find physician fault. Still, the threat of litigation continues contributing to higher practice costs, defensive medicine, and growing health care expenses for patients and families.
The research found what many Protect Patients Now advocates know to be true – that physicians in high-risk specialties face particularly significant exposure. Nearly three out of five obstetricians & gynecologists and more than half of general surgeons have been sued at least once during their careers. At the same time, states including Pennsylvania, Florida, Illinois, Kentucky, and New York experienced especially large premium increases in both 2024 and 2025.
The AMA also pointed to the stabilizing impact of liability reforms, noting that premiums in California remain significantly lower than many other states due in part to reforms such as reasonable limits on noneconomic damages.
As medical liability pressures continue mounting, physician groups warn that increasingly unpredictable litigation environments could make it harder to recruit and retain physicians in high-risk specialties and underserved communities.
For more on the AMA’s latest medical liability research and reform efforts, click here.
Medical liability premiums face traditional and emerging influences
While it has long held true that claims severity, economic pressures, and medical lawsuit abuse drive higher liability premiums, emerging factors like artificial intelligence (AI) and social inflation are beginning to play a larger role in health care costs.
Robert E. White Jr., president of The Doctors Company and TDC Group, discussed several factors with Medical Economics that are likely to contribute to medical liability insurance rate changes in the future.
White explained that medical liability premiums are traditionally influenced by both the frequency and severity of claims. As large jury awards and settlements continue increasing in some states, insurers must account for higher potential payouts when setting rates.
And while economic inflation is driving up the cost of legal defense, expert witnesses and medical care associated with claims, social inflation – the changing social and legal attitudes that lead to larger lawsuit payouts – is also driving up jury awards.
White also pointed to the growing legal uncertainty surrounding emerging technologies, noting, “As an emerging area of liability we of course have our eye on how artificial intelligence will impact the practice of medicine.”
As liability pressures continue mounting, physicians and health care leaders warn that unpredictable litigation environments can make it more difficult to recruit and retain doctors in specialties that face the highest risks and in communities that already face access challenges.
For more on traditional and emerging drivers of higher liability premiums and health care costs, click here.
AI adoption constrained by liability uncertainty
While generative AI adoption continues to grow across the health care industry, concerns about medical liability exposure and legal uncertainty may slow broader implementation in clinical settings.
A new survey from McKinsey & Company found that half of U.S. health care organizations have implemented generative AI, with adoption steadily increasing over the past three years. Health care leaders pointed to strong potential for improving efficiency and reducing administrative burdens, particularly in clinical productivity and operational workflows.
But despite growing interest, many organizations remain cautious about fully integrating the technology into patient care. Survey respondents cited concerns over inaccuracies, bias, security, and regulatory compliance as major barriers to broader adoption.
Medical liability concerns may also be contributing to hesitation around implementation. In an already unpredictable litigation environment, physicians and hospitals may be reluctant to rely too heavily on AI tools without clearer standards surrounding accountability when errors occur.
As health systems continue exploring AI integration, policymakers and industry leaders may face increasing pressure to establish guardrails that encourage innovation while limiting unnecessary liability exposure and protecting patient care.
For more on how medical liability concerns may shape the future of AI adoption in health care, click here.