NAIC efforts regarding this issue have been to review regulatory
and legislative solutions to be considered in response to a market
crisis in availability and affordability of medical liability
insurance. Data limitations preclude detailed analysis by specialty
or individual location. Additionally, the scope is limited to
the analysis of claim losses as a major contributor to premium
instability and availability problems.
Of primary concern when studying the issue of medical malpractice,
is the inconsistent, incomplete, difficult to obtain (and interpret)
nature of the data. Much of the NAICs conclusions and recommendations
are in agreement with those contained in the study released in
2003 by the GAO. Namely that state insurance regulators should
identify the types of data that are necessary to properly evaluate
the medical malpractice market—specifically, the frequency,
severity and causes of losses—and begin collecting these
data in a form that would allow appropriate analyses in the future.
For several years, the health care profession has struggled
with a medical liability insurance crisis. The number of insurers
offering this coverage has diminished while the cost of the coverage
increased to the point where many health care providers feel
that the increases are affecting the availability and affordability
of adequate insurance coverage. The NAIC studies available data
to survey the medical liability environment for crisis solutions
that may be addressed and implemented through regulatory or legislative
actions.
Interestingly, the medical liability insurance crisis varies
dramatically among the states. Loss ratio statistics show that
experienced losses can fluctuate wildly from year to year, and
jurisdiction to jurisdiction. Companies writing this line of
business tend to be regional or single-state insurers. According
to the U.S. General Accounting Office (GAO), regionally oriented “physician-owned
and/or operated insurers now cover 60 percent of the market.”
Because of the regional nature of the market, this study suggests
that the legal and economic structures currently in place for
both the medical profession and the insurance industry require
a look at the states individually to gain meaningful perspective
of the depth and breadth of the problems that have beset the
medical malpractice insurance market over the past several years.
There has been considerable speculation and a number of studies
concerning the causes of the latest crisis in the medical liability
insurance market. NAIC efforts identify many factors that have
contributed to the current market conditions. Some include: competitive
pricing; increasing claims experience, including increasing health
care costs, jury awards and defense and investigation costs;
declining investment yields; loss reserve deficiencies; inadequate
underwriting and loss control procedures; increasing reinsurance
costs; and pressure to consolidate.
Research further indicates that while net investment income
has declined, it is primarily, though not exclusively, underwriting
losses driving rate increases experienced by physicians and other
health care providers. As a result, ongoing study focuses on
incurred losses.
The
Statistical Information (C) Task Force was charged in 2005
to identify sources of medical malpractice data and the steps
required to capture data. To that end, they conducted a survey
of states who submitted copies of medical malpractice reports
compiled by departments, along with any medical malpractice
data reporting forms being used. These reports, or links to
them, are linked to the Statistical
Information (C) Task Force page. This page also links to
various other entities that collect medical malpractice data
either on a regular or ad hoc basis. Samples or links to samples
of these various types of medical malpractice data are also
posted on this page. |