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Government Relations

Politics Are Key Factor in Policy Progress

As we approach the culmination of the biannual event known as “the most important election of our lifetime,” it is an opportune moment to assess what this election has in store with regard to the medical professional liability community.

Webinar

Status Quo or Radical Change for MPL? The Results of the 2024 Election

MPL industry government relations experts offer a whirlwind tour of the 2024 election results and what that may mean for MPL stakeholders.

 

News

MPL Association Announces Cooperative Agreement with APCIA

The MPL Association is pleased to announce a new cooperative agreement between the Association and the American Property Casualty Insurance Association to enhance both entities’ government relations efforts. Read more!

IMPACT OF CAPS ON MEDICAL PROFESSIONAL LIABILITY CLAIMS
This quarter, our infographic shifts from reporting data from the MPL Association Data Sharing Project to spotlighting insights from the article, “An Analysis on How Caps on Medical Malpractice Claims Have Restrained Claim Values by State.” Featured in the 2024 Aon/ASHRM Hospital and Physician Professional Liability Benchmark report, the article uses physician data from the National Practitioner Data Bank to examine how caps on noneconomic damages influence average claim costs. The authors* found that lower caps effectively control claim costs, while higher caps often have a smaller/lesser impact. This infographic displays key findings, emphasizing the critical role of cap limits in medical professional liability.

 

3.4% Annual increase in average claims payments countrywide from 1990 to 2023

 

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  • A decade ago, average claim amounts were materially lower. Since then, small cap states have remained at 56% relative to the no cap states’ average, while large cap states increased from 74% to 81% of the no cap average.
  • This suggests that caps not only make a difference in the costs of claims, but also that the amount of the cap is material to these costs.

 

 

KEY FINDINGS

  • Caps on damages appear to have a favorable impact on average claim costs, especially in states with small caps and few exceptions.
  • States with small caps (≤ $500,000) consistently show lower average claim costs compared to states without caps.
  • As caps increase in size and exceptions are introduced, the effectiveness of caps in controlling claim costs diminishes.
  • Average claim costs in states with large caps (> $500,000) tend to be closer to those in states without caps.

 

*Article authors are Bill Burns, Kwon Miller, and Mike Stinson of the MPL Association

 

Contact for more information:
Kwon Miller, Research and Analytics Manager kmiller@MPLassociation.org