Wednesday, March 28, 2007

Most Med Mal Claims Net $0

The Bureau of Justice Statistics released a report on Medical Malpractice Insurance Claims in Seven States, 2000-2004, press release, March 25, 2007.

The states studied have comprehensive databases recording all medical malpractice claims that close.

Findings:

  • About 1/3 of claims resulted in a payout in ME, MO, and NV. In IL, it was only 12%.
  • When there is a payout, it is often not as large as some people might think. Less than 10% of claims in FL, ME, MO, and NV had payouts over $1 million.
    Among persons receiving compensation, insurance payouts were highest for claimants who suffered lifelong major or grave permanent injuries. In Florida and Missouri, claimants with these types of injuries received median payouts ranging from $278,000 to $350,000. Insurance payouts were lowest for claimants who suffered temporary or emotional injuries. In Florida and Missouri, claimants who suffered these types of injuries received median payouts ranging from $5,000 to $79,000.
  • Payouts get bigger the longer a claim is in the system:
    Medical malpractice insurance payouts increased as the insurance claims advanced through the legal system. Payouts were typically lowest for claims closed prior to the filing of a lawsuit and highest for claims closed after trial. In Florida, Nevada and Texas, claims decided by trial resulted in median payouts that were at least two and a half times larger than claims that were settled. Claims closed after a trial also cost more for insurance firms to defend than claims settled at or prior to a trial. In Florida, Nevada and Texas, 95 percent or more of medical malpractice claims were settled prior to a trial decision before a jury or judge.
The full 12-page report is Thomas H. Cohen & Kristen A. Hughes, Medical Malpractice Insurance Claims in Seven States, 2000-2004 (March 2007).

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