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Medical Malpractice Damage Caps and Provider Reimbursement

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  • Andrew I. Friedson

Abstract

A common state legislative maneuver to combat rising healthcare costs is to reform the tort system by implementing caps on noneconomic damages awardable in medical malpractice cases. Using the implementation of caps in several states and large database of private insurance claims, I estimate the effect of damage caps on the amount providers charge to insurance companies as well as the amount that insurance companies reimburse providers for medical services. The amount providers charge insurers is unresponsive to tort reform, but the amount that insurers reimburse providers decreases for some procedures. Copyright © 2015 John Wiley & Sons, Ltd.

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  • Andrew I. Friedson, 2017. "Medical Malpractice Damage Caps and Provider Reimbursement," Health Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 118-135, January.
    • Handle: RePEc:wly:hlthec:v:26:y:2017:i:1:p:118-135
    DOI: 10.1002/hec.3283
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    References listed on IDEAS

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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.
    2. Ellyson, Alice M. & Robertson, Justin C., 2019. "Can malpractice pressure compel a physician to relocate?," International Review of Law and Economics, Elsevier, vol. 57(C), pages 37-48.
    3. Xiaoqian Fan & Qian Cao & Lin Yang, 2021. "Do professional norms in the medical industry favor outcome bias?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(5), pages 1275-1283, July.

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