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Medical Malpractice Cap

Some believe that we are facing a malpractice crisis that is raising medical malpractice rates because of huge awards. As a result, some states are establishing medical malpractice caps ranging between from $150,000 to $350,000. Others believe this is more a problem of insurance companies continuing to raise rates even though they are not paying out more than they're taking in, which is what they have often claimed. States without medical malpractice caps find that some doctors are moving out of such states to those with caps, which appear to produce lower awards and lower medical malpractice insurance rates. In addition, in states without caps, there are indications that medical insurance costs increase because doctors do much more "defensive testing," ordering multiple tests to make sure they do not make errors which result in expensive and time consuming malpractice suits.

Fast Facts

  • Some studies indicate that medical malpractice claims have not increased at all in recent years, while medical malpractice insurance rates have increased 52%. Some believe those increases are due to investment losses.
  • One study reports that capping non-economic awards would only actually lower insurance costs by 1%.

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