GAO Doesn't Spell 'Go' On Med Mal Reform Bill

The insurance industry was quick to sass critics with a hearty “I told you so” after the U.S. General Accounting Office came out with a report confirming rising losses as the major factor forcing medical malpractice premiums to soar.

GAO, the independent research arm of Congress, pointed out that since 1998, insurer losses on medical malpractice claims have increased dramatically in certain states–Mississippi, for example.

However, it is unlikely that the report will help the cause of those who want Congress to pass federal malpractice reforms, because the document includes too many caveats.

For one, GAO hedges in its main conclusion, explaining that a lack of comprehensive data prevented the agency from fully analyzing loss trends and their causes. In addition, GAO conceded one point critics have consistently harped on–that another factor boosting medical malpractice premiums is the temporary decline in insurer investment income.

Some critics would have us believe that Wall Street's woes are totally responsible for soaring premiums, so the fact that GAO cites other factors–rising losses, fewer players offering the coverage, more expensive reinsurance–is a positive development.

However, the report is not definitive enough. It leaves too much room for argument, derailing any attempt to fast track a malpractice reform bill through Congress. GAO's report provides more than enough ammunition for both sides to continue their battle indefinitely.

The odds of passing a reform bill won't improve until the problem nationwide becomes even more pronounced, we're afraid. That means more doctors walking picket lines or leaving high-risk specialties for good, medical care costs continuing to skyrocket, and tens of millions more going without health insurance.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, August 11, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

Special Reports /

GAO Doesn't Spell 'Go' On Med Mal Reform Bill

Related Stories

Recommended For You