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The net effects of medical malpractice tort reform on health insurance losses: the Texas experience

Author

Listed:
  • Patricia H. Born

    (Florida State University, College of Business)

  • J. Bradley Karl

    (East Carolina University, College of Business)

  • W. Kip Viscusi

    (Vanderbilt University Law School)

Abstract

In this paper, we examine the influence of medical malpractice tort reform on the level of private health insurance company losses incurred. We employ a natural experiment framework centered on a series of tort reform measures enacted in Texas in 2003 that drastically altered the medical malpractice environment in the state. The results of a difference-in-differences analysis using a variety of comparison states, as well as a difference-in-difference-in-differences analysis, indicate that ameliorating medical malpractice risk has little effect on health insurance losses incurred by private health insurers.

Suggested Citation

  • Patricia H. Born & J. Bradley Karl & W. Kip Viscusi, 2017. "The net effects of medical malpractice tort reform on health insurance losses: the Texas experience," Health Economics Review, Springer, vol. 7(1), pages 1-16, December.
    • Handle: RePEc:spr:hecrev:v:7:y:2017:i:1:d:10.1186_s13561-017-0174-2
    DOI: 10.1186/s13561-017-0174-2
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    References listed on IDEAS

    as
    1. Meyer, Bruce D & Viscusi, W Kip & Durbin, David L, 1995. "Workers' Compensation and Injury Duration: Evidence from a Natural Experiment," American Economic Review, American Economic Association, vol. 85(3), pages 322-340, June.
    2. Patricia H. Born & W. Kip Viscusi, 1998. "The Distribution of the Insurance Market Effects of Tort Liability Reforms," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(1998 Micr), pages 55-105.
    3. Ronen Avraham, 2007. "An Empirical Study of the Impact of Tort Reforms on Medical Malpractice Settlement Payments," The Journal of Legal Studies, University of Chicago Press, vol. 36(S2), pages 183-229, June.
    4. Viscusi, W. Kip & Zeckhauser, Richard J. & Born, Patricia & Blackmon, Glenn, 1993. "The Effect of 1980s Tort Reform Legislation on General Liability and Medical Malpractice Insurance," Journal of Risk and Uncertainty, Springer, vol. 6(2), pages 165-186, April.
    5. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
    6. Myungho Paik & Bernard S. Black & David A. Hyman & William M. Sage & Charles M. Silver, 2012. "How Do the Elderly Fare in Medical Malpractice Litigation, Before and After Tort Reform? Evidence from Texas," American Law and Economics Review, Oxford University Press, vol. 14(2), pages 561-600.
    7. Hyman, David A. & Silver, Charles & Black, Bernard & Paik, Myungho, 2015. "Does tort reform affect physician supply? Evidence from Texas," International Review of Law and Economics, Elsevier, vol. 42(C), pages 203-218.
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    Cited by:

    1. Hao Yu & Olesya Baker, 2022. "Do noneconomic damage caps reduce medical malpractice insurance premiums? Evidence from North Carolina," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 25(2), pages 201-218, June.

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