It has been reported that from 2012 to 2022, medical malpractice verdicts of $10 million or more in the United States ranged from 34 in 2013 to 52 in 2022. And in 2023, there were 57 medical malpractice verdicts of $10 million or more in the United States, with just over one-half in the amount of $25 million or more.
How do these large medical malpractice verdicts effect medical malpractice insurance rates? Medical liability insurance premiums for physicians reportedly have steadily increased since 2019: from 2019 to 2023, the average medical malpractice insurance premium rates for physicians increased between 1.1% and 3% each year in states without patient compensation funds. The contribution to the increase in medical malpractice insurance premium rates from so-called mega-verdicts in medical malpractice claims is not clear. Medical malpractice verdicts and settlements are only one factor effecting such rates.
The Doctors Company, which is the largest physician-owned medical malpractice insurer in the United States, reports that the frequency of malpractice claims in the United States has trended downward in the last 10 to 15 years. “Malpractice premiums for medical professionals fell rather dramatically from 2005 to 2018, but since then they have risen by about 20% (still nowhere near the heights of the mid-2000s).”
Despite increasing medical malpractice premiums charged to its insureds, The Doctor Company reports: “We believe that doctors deserve more than a little gratitude for a career spent practicing good medicine. That’s why we created the Tribute Plan in 2007 to reward members for their loyalty to The Doctors Company and for their commitment to superior patient care. We’ve paid more than $150 million in Tribute awards, and the highest award paid to date is $264,808.”
“We are proud to report that we are one of the most financially sound companies in the industry, with $6.5 billion in assets and $2.5 billion in member surplus, the largest of any national physician-owned medical malpractice insurer.” (emphasis added)
The Doctors Company states on its website: “From 2013 through 2018, liability premiums were relatively stable. In 2019, a rapid uptick began, culminating in roughly 30 percent of policyholders nationwide experiencing an increase in their medical malpractice premiums in 2022. These increases are not due to social inflation alone, but they are connected.” (“Social inflation” occurs when an insurer’s average claim amount grows faster than the overall inflation rate.)
Forces Other Than Large Verdicts/Settlements In Rising Medical Malpractice Insurance Premiums
The AMA reported in 2023: “According to some actuaries, we were already in the early stages of a hard market in 2020, as insurers started raising premiums in response to deteriorating underwriting results, lower loss reserve margins, and lower returns on investment. Thus, it was expected that insurers would sustain or even push for higher premiums in 2021.”
If you or a loved one may have been injured as a result of medical malpractice in the United States, you should promptly find a medical malpractice lawyer in your state who may investigate your medical malpractice claim for you and represent you or your loved one in a medical malpractice case, if appropriate.
Click here to visit our website or call us toll-free in the United States at 800-295-3959 to find medical malpractice attorneys in your U.S. state who may assist you.
Turn to us when you don’t know where to turn.
