Tuesday, March 28, 2006

Medical Lawsuit Caps Shutting Cases Out of Courthouses

Medical Lawsuit Caps Shutting Cases Out of Courthouses
Patient advocates say the medical malpractice "reform" enacted in Texas about two-and-a-half years ago comes at a high price for patients, especially if they are very old or very young. Large awards for pain and suffering were eliminated, which forces attorneys to take cases only in which there are economic losses generally from lost wages. American Statesman, 03/28/2006

1 comment:

THE HAMMER said...

According to J. Robert Hunter, Federal Insurance Administrator under Presidents Ford and Carter, caps don’t work because liability rates reflect not litigation costs but the insurance industry’s own practices. During good times, insurers write policies even for the worst risks to generate cash for investment. When the stock market tanks, rates climb steeply to cover losses. The current liability crisis, Hunter notes, coincided with the market downturn that began in the summer of 2001. And since the insurance cycle is international, the “hard market” also drove up premiums in Canada, Australia and France. “And those countries have totally different legal systems,” Hunter says.