The American Medical Association, on behalf of its 300 000 members, has begun an advertising campaign calling for the reform of the law on liability for malpractice. The campaign is aimed at legislators and courts in about 25 states, after concern at the highest medical liability insurance premiums since the mid-1980s.
The association said that the average increase in malpractice insurance premiums in 2001 was about 15%, and it predicts that this year the rise could be as much as 50% for some specialties in some regions. Over half (57%) of the cost of medical malpractice premiums goes towards lawyers' fees, according to the Health Care Liability Alliance.
Although nearly 70% of all medical malpractice claims result in no payment to plaintiffs, so far this year the median cost of legal fees in cases where the jury rules the defendant not guilty has been $66 767 (£47 350; €76 250). Equally alarming is the increase in jury awards of $1m or more.
To make matters worse, several carriers are abandoning the liability insurance business, leaving many doctors without cover. Last December the St Paul Companies of Minnesota, the nation's second largest malpractice insurer, said it lost almost $1bn and would no longer renew policies for 42 000 doctors nationwide.
In south Florida, where insurers say litigation is the heaviest, obstetricians and gynaecologists pay premiums of as much as $202 949 a year—the highest rates in the country.