The impact of state laws limiting malpractice damage awards on health care expenditures

F.J. Hellinger and W.E. Encinosa

American Journal of Public Health, 2006, vol. 96, issue 8, 1375-1381

Abstract: Twenty-eight states have laws that limit payments in malpractice cases, and several studies indicate that these laws reduce the frequency and severity of malpractice claims and lower premiums. Moreover, proponents believe that such laws reduce health care expenditures by reducing the practice of defensive medicine. However, there is a dearth of empirical evidence about the impact of these laws on the cost of health care. We used multivariate models and relatively recent data to estimate the impact of state tort reform laws that directly limit malpractice damage payments on health care expenditures. Estimates from these models suggest that laws limiting malpractice payments lower state health care expenditures by between 3% and 4%.

Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:aph:ajpbhl:10.2105/ajph.2005.077883_3

DOI: 10.2105/AJPH.2005.077883

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