Medical Malpractice News

Second Annual Medical Malpractice Insurance Report Released

Olympia, Wash. — The second annual medical malpractice insurance survey was released today by Insurance Commissioner Mike Kreidler. The survey, or data call, analyzes trends in medical malpractice claims for a 10-year period beginning July 1, 1995 and ending June 30, 2005.

In last year’s data call, the top five medical malpractice insurers comprising over 90 percent of the regulated market for physicians and surgeons were asked to supply specific closed claim information to the Insurance Commissioner’s Office for a 10-year period. This year’s report includes the most recent year of data on compensation for injuries and the related expenses of defending physicians. Surplus lines carriers and self-insurers that provide malpractice coverage for physicians are not regulated by the Insurance Commissioner and did not participate in the data call.

The participating insurers closed 10,212 medical malpractice claims over the 10-year period. Among the key findings:

• The number of paid medical malpractice claims increased at an annual rate of 3.5 percent.
• The average amount of compensation per claim increased at an annual rate of 3.2 percent.
• Twenty-seven percent of the claims were closed with an indemnity (compensation) payment to a claimant.
• 3,178 claims were closed without any compensation payments or defense costs.
• Less than two percent of the total paid claims resulted in compensation
• Of the 10,212 closed claims, 45 claims – or less than one percent – were decided by a jury and resulted in a payment to a plaintiff.
• Sixty-two percent of the claims were closed with defense costs, such as attorney or expert witness fees.
• Sixty-seven percent of the claims that incurred defense costs resulted in no compensation payment.
• The number of claims with defense costs increased at an annual rate of 3.5 percent.
• Average defense costs increased at an annual rate of 7 percent.

“However, we still lack the authority to require specific information that could shine a light on the real trouble areas in the medical malpractice market,” he added. “Now is the time to develop clear and consistent requirements for reporting claim and settlement information. It’s time to move from policy decisions based on anecdotes to decisions based on data that can really solve problems. I intend to push for legislation again in 2006 that would give my office the authority we need to better assess the health of the medical malpractice market.”

The study limitations include:

The complete malpractice survey results can be found at insurance.wa.gov/special/wic/MedMalDataCallOct2005.pdf.
 

Please contact us if anyone you know has suffered from debilitating injuries due to medical malpractice in Houston.

	Did You Know?
	Many people don’t know what expenses are typically included in a settlement A typical medical malpractice claim will include compensation for pain and suffering, payment of medical expenses for treating the injury caused by the malpractice and reimbursement for any past, present or future financial losses that you have incurred as a result of the malpractice. However, this varies by State.