Insurer group encouraged by GAO report on med mal

Rough Notes, Oct 2003 by Zinkewicz, Phil

The Alliance of American Insurers (AAI) says a recent report by the U.S. General Accounting Office (GAO) linking medical malpractice rates to increases in claims bolsters the Alliance's position on the need for legislative reform. "We are encouraged by the findings of the GAO report, and we hope it adds momentum to reform efforts already underway in Congress," said AAI counsel Kenneth D. Schloman.

The AAI quotes the GAO report as stating that insurer profits "are not increasing, indicating that insurers are not charging and profiting from excessively high premium rates."

The AAI supports the use of caps for noneconomic damages and the abolition of joint and several liability in all types of litigation as a means to reduce escalating jury awards and settlements. The association backs Senate Bill S. 11, the "Patients First Act of 2003." The House has already passed a similar medical liability reform bill.