Actuaries Advise Congress on Financial Implications of Needed MedMal Reform

WASHINGTON, D.C.- CAS member James D. Hurley led four other CAS members in an in-depth analysis of medical malpractice tort reform.

Hurley, who served as chairperson of the American Academy of Actuaries’ Medical Malpractice Reform Work Group, offered the group’s conclusions and comments last November to state and federal officials on Capitol Hill who are considering national tort reform for medical malpractice.

In his presentation, Hurley noted that, as an actuary, he spends about 85 to 90 percent of his time on medical malpractice for insurance purposes. He warned those on the Hill that, "We must be cautious about medical malpractice tort reform," and that "These reforms need to be evaluated before being implemented."

Specifically, Hurley and the other work group members recommended a comprehensive medical malpractice insurance reform package, supplemented with a cap on awards for non-economic damages and some form of mandatory recognition of duplicate reimbursement of the same damages. This type of package, the group’s members recommended, could result in decreasing malpractice losses and insurance premiums.

The report outlining the group’s findings briefly describes situations in three states where medical malpractice tort reform has been implemented: California, New York, and Ohio. During his presentation, Hurley also mentioned Louisiana and Texas, where tort reform and rate reduction in premiums have more recently been implemented.

Other members of the group were: William E. Bums, Linda A. Dembier, Aileen C. Lyle, and Edward M. Wrobel Jr.

For a copy of "Medical Malpractice Tort Reform: Lessons from the States," contact the American Academy of Actuaries at (202)223-8196.