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Experts estimate that medical liability suits cost the U.S. health care system an annual total of about $56 billion in direct litigation costs and the indirect costs of defensive medicine. About a decade ago, medical liability insurance premiums were rising fast. Medical providers and insurers said liability costs were making health care more expensive and hurting access to care. Other medical experts said malpractice claims were high because of systemic patient safety problems. States have responded by passing a variety of laws to curb suits and some hospital systems have adopted alternative ways to resolve cases. But dissatisfaction with the current liability system remains widespread because of its relatively high cost and flawed performance in quickly and fairly compensating injured patients.
- Research suggests that noneconomic damage caps are moderately successful in constraining the growth of liability insurance premiums, but that a mix of measures may be most effective.
- The Affordable Care Act of 2010 authorizes new pilot projects to test innovative approaches to resolving liability cases in fairer and less expensive ways.
- Movement toward alternative liability approaches or expanding traditional lawsuit restrictions has been stalled by the political impasse over health care reform.
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Two-page briefs providing insight and analysis on key issues affecting health and health care in the United States.
View allMed liability suits cost US ~56 bil in direct litigation & indirect cost of defensive medicine