The Herald’s Jan. 30 editorial, “Finding a compromise requires real leadership,” addressed two issues in the medical malpractice debate that deserve further discussion.
First, two groups that the debate revolves around – at least in the media – are doctors and lawyers. The editorial suggests that the governor and legislative leaders force them to sit down and reach a compromise. A good suggestion – and one that’s been tried.
Over the last two years, the Washington State Trial Lawyers Association (WSTLA) has participated in at least six different efforts to negotiate ways to increase patient safety, help prevent medical injuries and reduce cost and frequency of medical malpractice litigation. Three of these efforts were initiated by WSTLA – the others by former Attorney General Christine Gregoire, former Gov. Gary Locke and Sen. Alex Deccio.
The Washington State Medical Association (WSMA) steadfastly refuses to discuss compromise.
Second, the editorial speculated that patients and lawyers oppose caps because the $350,000 cap outlined in WSMA’s Initiative 330 is “unrealistically low.”
The fundamental reason patients and lawyers oppose caps is because it’s been proven they don’t work. Caps do not result in lower insurance premiums for doctors, and they drastically limit accountability in cases where patients suffer the most harm caused by negligent conduct. Caps discriminate against those who would have low to zero economic damages, i.e., stay-at-home moms, senior citizens, the poor, small business owners just starting out, and many others. And they have already been ruled unconstitutional in Washington.
In 2003, the Medical Liability Monitor reported that every state experienced medical malpractice insurance rate increases that year – whether or not damages were capped.
For example, three states with caps, Hawaii, Texas and Florida, saw rate increases of more than 20 percent. New Mexico has caps – rates went up more than 30 percent. Virginia has caps – rates went up more than 40 percent. In Washington, without caps, rates only increased 8.35 percent.
These increases occurred because insurance markets crashed in late 2001 after 9/11, resulting in increased premiums across the board, including medical malpractice. Meanwhile, the number of lawsuits in Washington has remained stable over the last 20 years.
Investment and insurance markets are stabilizing. In January, Physicians Insurance, the company that covers nearly 70 percent of Washington’s doctors, reduced 2005 medical malpractice premiums by 7.7 percent following record-breaking net income last year.
Last month, the state Office of the Insurance Commissioner released a study showing that, when adjusted for inflation, medical liability premiums are lower than 20 years ago. In some practice areas they’re down by 25 to 40 percent.
An OIC study released just this week shows that, when adjusted for population growth and inflation, there has beenno significant increase in medical malpractice insurance claims or payouts over the last 10 years. Insurance Commissioner Mike Kreidler said this shows there is no medical malpractice crisis in Washington.
One day after releasing that study, Kreidler’s office announced it was ordering Physician’s Insurance, and its affiliate, Western Professional Insurance Co., to refund $1.3 million in premiums overcharged to doctors in 2003. They were also fined $90,000 for non-compliance with insurance code regulations.
The insurance industry is responsible for rising malpractice rates – not patients who have been injured through medical negligence.
Why is the Washington State Medical Association – which pledges to protect and provide leadership to health officials and the public – partnered with the insurance industry on I-330, an initiative that would let insurers continue to arbitrarily raise rates and force doctors out of business? Because they have a financial interest in Physician’s Insurance Co.
This is where Initiative 336 comes in – an initiative supported by a large coalition of citizen groups, medical professionals, labor organizations and WSTLA. I-336 will hold insurance companies accountable by making them publicly open their books when asking to increase rates more than 15 percent.
I-336 will hold everyone accountable – insurers, doctors and lawyers – and prevent companies like Physicians Insurance and Western Professional Insurance Co. from pricing good doctors out of the market. Good doctors are being gouged by an industry that tries to hide its profiteering by blaming victims of medical malpractice.
As I have said before – and it bears repeating – if we truly want to reform the medical malpractice system in Washington state, two things must happen.
First, we must hold the insurance industry accountable and protect good doctors from price gouging. Second, we need to reduce incidents of medical malpractice.
Initiative 336 will do both.
Rodney B. Ray is president of the Washington State Trial Lawyers Association.
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