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AJPH First Look, published online ahead of print Jun 29, 2006
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August 2006, Vol 96, No. 8 | American Journal of Public Health 1375-1381
© 2006 American Public Health Association
DOI: 10.2105/AJPH.2005.077883

GOVERNMENT, POLITICS, AND LAW

The Impact of State Laws Limiting Malpractice Damage Awards on Health Care Expenditures

Fred J. Hellinger, PhD and William E. Encinosa, PhD

The authors are with the Center for Delivery, Organization, and Markets, Agency for Healthcare Research and Quality, Rockville, Md.

Correspondence: Requests for reprints should be sent to Fred J. Hellinger, PhD, Center for Delivery, Organization, and Markets, Agency for Healthcare Research and Quality, Room 5319, 540 Gaither Rd, Rockville, MD 20850 (e-mail: fhelling{at}ahrq.gov).

Twenty-eight states have laws that limit payments in malpractice cases, and several studies indicate that these laws reduce the frequency and severity of malpractice claims and lower premiums. Moreover, proponents believe that such laws reduce health care expenditures by reducing the practice of defensive medicine. However, there is a dearth of empirical evidence about the impact of these laws on the cost of health care.

We used multivariate models and relatively recent data to estimate the impact of state tort reform laws that directly limit malpractice damage payments on health care expenditures. Estimates from these models suggest that laws limiting malpractice payments lower state health care expenditures by between 3% and 4%.




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T. M. Waters, P. P. Budetti, G. Claxton, and J. P. Lundy
Impact Of State Tort Reforms On Physician Malpractice Payments
Health Aff., March 1, 2007; 26(2): 500 - 509.
[Abstract] [Full Text] [PDF]


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