What state capped MedMal awards and STILL had insurance go up?

[BigBigBear]

I saw this out here a few weeks ago, and I could kick myself for not bookmarking it.

I'm getting the predictable "lawyers make health care too expensive because of medical malpractice suits" from a freeper-esque individual, and I could swear I just saw a piece showing that (Florida?) capped MedMal awards and the insurance industry RAISED medical malpractice insurance anyway.

Can anyone help ?

[KG]

1. that would be FL

[alcuno]

3. Of course. It's always Florida.

[punpirate]

2. Texas, as well...

... has not seen a reduction in malpractice insurance rates after instituting caps on awards, I believe. Part of the reason why the lobbyists' area in the legislature gallery of Texas is known as the "owners' box."

Such caps were never intended to reduce costs, but, rather, to increase insurers' profits, though cost reductions were always the public reason given for such legislation. The problem goes back to the early `80s, when new insurers were discounting insurance rates to get into the market, and were sure that their investments in the high-inflation days of the early-`80s would reap large dollar returns to offset their rate discounting. When that didn't happen, rates went up to cover outlays. The rate increases in such states had much less to do with claims than with bad investments on the part of the insurers.

Cheers.

[alfredo]

4. didn't that happen in Louisiana too? eom

[soup]

6. the 'owner's box'

Sounds like the insurance lobbyists number in Texas rival those in Florida:

There are 94 insurance industry lobbyists representing 135 insurance entities to lobby Florida's 180 legislators.

There's also the 'thank you' factor:

The insurance industry pumped $2.3 million in campaign contributions to legislators in the 2002 election cycle alone.
full article:
http://www.palmbeachpost.com/business/content/business/insurance_lobby.html


and then there's jeb:

>snip<
Sen. Tom Lee, R-Brandon, the Senate Rules chairman "said he may also call on the governor 'to explain his statements, which we have on tape,' at the statesman's luncheon in Orlando last week, in which Bush reportedly called trial lawyers 'the No. 1 interest group in the country that is opposed to the president... and Republican principles.' The governor also reportedly singled out trial lawyers as the major benefactor to his Democratic opponent and said they were responsible for the rising malpractice insurance premiums, which he said are forcing doctors and hospitals to limit patient services.

'It led some of us to believe this is a very personal vendetta for those of us who don't make policy decisions that way,' Lee said.

"The governor's palpable dislike of the trial lawyers has led many senators to conclude his aggressive pursuit of a $250,000 cap in repeated sessions, even though there is no agreement between the two legislative chambers, is more for political payback than virtuous policy, said Sen. Dennis Jones, R-Seminole, the Senate Republican leader."
>snip<
http://www.polstate.com/archives/003303.html


sometimes ya just gotta laugh:

July 06. 2003
Med-mal for dummies

As a public service today, I shall explain the complexities of the medical-malpractice crises that threatens to shake Florida to its very foundations.

Pay close attention, folks, this stuff is complicated.

I mean, even with the wise counsel of literally hundreds of knowledgeable and public-spirited lobbyists, our hapless State Legislature has already run through two med-mal special sessions without even managing to define the problem, let alone solve it.

Heck, if it weren't for the fact that special sessions give our elected legislators the opportunity to raise lots of campaign cash from hundreds of knowledgeable and public-spirited lobbyists (can you say, "one-stop shopping"?) it would all be a monumental waste of time.
>snip<
http://www.sunone.com/apps/pbcs.dll/article?AID=/20030706/COLUMNS16/207060303/-1/EDITORIALS


How are things going in Nevada? Have the malpratice premiums gone up there?:

>snip<
Last summer, Gov. Kenny Guinn summoned the state Legislature for a special session, during which lawmakers passed a measure capping most jury awards at $350,000.
>snip<
http://www.reviewjournal.com/lvrj_home/2003/Jul-09-Wed-2003/news/21693504.html


My take on this is pretty much:

the victims, attorneys, and doctors lose
the insurance companies and the Republicans they finance win

[wellst0nev0ter]

5. Link

http://ap.tbo.com/ap/florida/MGA415NIWOD.html