Hopes Rise For Penn Med Mal Reform Bill
By Daniel Hays
NU Online News Service, Feb. 18, 2:33 p.m. EST?An insurance trade group said today it is hopeful action by Pennsylvania legislators will remedy some of the problems in the state's medical malpractice market.
But at the same time the National Association of Independent Insurers based in Des Plaines, Ill. said changes in the works would not fully solve a high loss rate driven by huge legal settlements.
"We're encouraged by the fact that the lawmakers are working so quickly and cooperatively on these important issues," said Joe Termini, NAII counsel.
Mr. Termini said there are "no guarantees," but he believes some reform measure will gain approval because Republican Gov. Mark Schweiker and the Republican-controlled Senate and House "want to pass something."
Last week, in the latest round of tinkering on the measure, the Senate passed an amended version of House Bill 1802, sponsored by Assembly Insurance Committee Chairman Nicholas A. Micozzie, R-Clifton Heights.
The House quickly amended the revised bill and sent it back to the Senate for concurrency. The measure now goes to a Senate committee. Both houses are currently in adjournment.
The revised House version, H.B. 1802 contains several tort reform measures related to several and joint liability for injuries and would allow insurers to make annual rather than lump sum payments of future economic damages for an injury that left a patient unable to work or needing constant medical care.
"Overall, the latest version of the bill shows small, but favorable steps to enhance the medical malpractice market in Pennsylvania," said Mr. Termini.
But he said as it now stands it would only "stop some bleeding" and, "I don't think it cures marketplace woes. An ideal cure would be a cap on pain-and-suffering damages."
According to the NAII, the combined loss ratios for Pennsylvania medical malpractice coverage reached 160 percent in 2000. The number translates into a payment by insurers of $1.60 per every dollar received in malpractice premiums.
"These increasingly poor results are attributable to a rise in litigation and claims. Simply raising premiums won't solve the problem; only tort reform can. The legislature's action on H.B. 1802 takes some favorable incremental steps toward recognizing this as well," Mr. Termini said.
NAII reports a membership of more than 690 member companies writing more than $98 billion in annual premium. According to the association its members comprise more than 31 percent of the Pennsylvania property-casualty market.
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