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AJPH First Look, published online ahead of print Jun 29, 2006
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American Journal of Public Health, 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 1* William E. Encinosa 1

1 Agency for Healthcare Research & Quality

* To whom correspondence should be addressed. E-mail: fhelling{at}ahrq.gov.


  Abstract

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%.

Key Words: Government, Health Law, Health Policy




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[Abstract] [Full Text] [PDF]


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