Evaluation of Medical Malpractice Tort Reform
Download
1 / 21

Evaluation of Medical Malpractice Tort Reform Casualty Actuarial Society Colorado Springs, CO May 17, 2004 - PowerPoint PPT Presentation


  • 106 Views
  • Uploaded on

Evaluation of Medical Malpractice Tort Reform Casualty Actuarial Society Colorado Springs, CO May 17, 2004. Presented by: Richard S. Biondi, FCAS. Main Data Sources. National Practitioner Data Base Physicians Only All Paid Claims Countrywide Florida Department of Insurance Data Base

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Evaluation of Medical Malpractice Tort Reform Casualty Actuarial Society Colorado Springs, CO May 17, 2004' - lavender


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Slide1 l.jpg

Evaluation of Medical Malpractice Tort ReformCasualty Actuarial SocietyColorado Springs, COMay 17, 2004

Presented by:Richard S. Biondi, FCAS


Main data sources l.jpg
Main Data Sources

  • National Practitioner Data Base

    • Physicians Only

    • All Paid Claims

    • Countrywide

  • Florida Department of Insurance Data Base

    • Only Commercially Insured Claims

    • Physicians & Hospitals

    • More Detail per Claim

    • Florida Only

  • Texas Department of Insurance Data Base

    • Commercial, Bodily Injury Liability Claims

    • Indemnity Payments Over $10,000

    • Physicians & Hospitals

    • Texas Only

Milliman


Other data sources l.jpg
Other Data Sources

  • Physicians Insurance Association of America

    • Countrywide Only

  • Annual Statements

    • All Insurers Consolidated

  • Rate Filings

  • US Government (e.g. census) Data

Milliman









Florida effect of cap on non economic damage l.jpg
Florida – Effect of Cap on Non-Economic Damage

In Sept. 2003, Florida passed non-economic cap of $500K-$1million for physicians and $750K-$1.5 million for hospitals. Florida estimated a savings of 5.3%.

Milliman


Slide12 l.jpg

$250,000 Cap on Non-Economic DamagesExample of Simulation Model

Stage A

Stage B

Stage C

Stage D

Stage E

Economic Damages

$155,013

Hospital Settlement

$1,435,275

Economic Damages:25%

$500,041

Post Verdict

Reduction (31%)

Total Settlement

$1,542,147

Total Verdict Amount

$2,000,165

Pre-ReformNon-Economic Damages

$465,038

Physician Settlement

$106,872

Non-Economic Damages75%

$1,500,124

Post Verdict

Reduction (31%)

Post ReformNon-Economic Damages

$250,000

Non-Economic Damages75%-Capped at $250,000

$250,000

Post Verdict

Reduction (0%)

Pre-Reform Non-Economic – Post Reform Non-Economic 465,038 – 250,000Loss Savings = _________________________________________________ = ____________________ = 34.7%

Total Pre-Reform Loss 155,013 + 465,038

Milliman


Slide13 l.jpg

$250,000 Cap on Non-Economic DamagesExample of Simulation Model

Stage A

Stage B

Hospital Settlement

$1,435,275

Total Settlement

$1,542,147

Physician Settlement

$106,872

Milliman


Slide14 l.jpg

$250,000 Cap on Non-Economic DamagesExample of Simulation Model

Stage B

Stage C

Total Verdict Amount

$2,000,165

Total Settlement

$1,542,147

Milliman


Slide15 l.jpg

$250,000 Cap on Non-Economic DamagesExample of Simulation Model

Stage D

Stage C

Economic Damages:25%

$500,041

Post Verdict

Reduction (31%)

Total Verdict Amount

$2,000,165

Non-Economic Damages75%

$1,500,124

Post Verdict

Reduction (31%)

Non-Economic Damages75%-Capped at $250,000$250,000

Post Verdict

Reduction (0%)

Milliman


Slide16 l.jpg

$250,000 Cap on Non-Economic DamagesExample of Simulation Model

Stage D

Stage E

Economic Damages:25%

$500,041

Economic Damages

$155,013

Post Verdict

Reduction (31%)

Non-Economic Damages75%

$1,500,124

Pre-ReformNon-Economic Damages

$465,038

Post Verdict

Reduction (31%)

Non-Economic Damages75%-Capped at $250,000$250,000

Post ReformNon-Economic Damages$250,000

Post Verdict

Reduction (0%)

Milliman




Percentage split in indemnity cases all years combined l.jpg

Texas DOI - Total

Florida DOI - Hospitals

Other

Economic - Wage

Economic - Other

11%

3%

1%

Economic - Medical

19%

Economic

30%

Non-Economic

59%

Non-Economic

77%

Percentage Split in Indemnity Cases(all years combined)

Milliman



Distribution of post verdict appeal factors l.jpg
Distribution of Post Verdict Appeal Factors

*Sustained percentage is the ratio of verdict amount after appeal / verdict amount before appeal.

Milliman


ad