Statement From Maryland Trial Lawyers Regarding 'Alliance to Preserve Access'.

Business Editors/Legal Writers

BALTIMORE--(BUSINESS WIRE)--Dec. 10, 2003

The following is a statement by the Maryland Trial Lawyers in regards to the "Alliance to Preserve Access":

In response to the package of bills presented by the insurance industry and medical society, calling themselves "Alliance to Preserve Access," the Maryland Trial Lawyers raised serious questions about whether the package of bills presented will actually do more to limit access to care for the health care consumer. The package of bills includes provisions to impose further limits on victims' rights and access to the legal system, while offering relief to insurance companies. The so-called reforms are based on the contention that out of control verdicts and runaway juries are responsible for rising malpractice rates and driving doctors out of business. But, pointing to Medical Mutual's own record that they have only had 10 verdicts against them in the past year, 5 of which were in the range of $65,000 - $250,000, and three of which were reduced by the mandatory $625,000 cap on damages for pain and suffering, - hardly the out of control picture being painted by the insurance industry. "It is clear from the hard data on malpractice lawsuits in Maryland that there is no correlation between lawsuits and malpractice insurance rate hikes," said Kevin McCarthy a board member of the Maryland Trial Lawyers Association.

"Doctors are not being driven out of practice by a lawsuit explosion or runaway juries in the state of Maryland. We already have a mandatory cap on damages that can be awarded which precludes sky-high verdicts. No matter how egregious the error, an injured patient can only be awarded $625,000 for pain and suffering. So, there are no jackpots for medical malpractice victims in Maryland," said McCarthy. McCarthy, a practicing lawyer for 30 years, spent a good deal of his career defending Doctors and Insurance companies and is familiar with all sides of the issue. He now represents only plaintiffs in malpractice cases. "It is sad that the insurance industry is looking to the most vulnerable party in the system, the injured victim of medical negligence, to pay for the industry's business losses. The insurance industry is squeezing good doctors and limiting patients in their pursuit of a better profit margin."

MTLA has retained Jay Angoff to evaluate both Medical Mutual's performance and the need for further tort reform in Maryland. Angoff, former Missouri Insurance Commissioner, advised the Maryland Insurance Administration on CareFirst's proposed conversion from non-profit to for-profit status. Speaking about the measures announced today by the insurance industry and medical society, Angoff said, "Rates have little or no connection to the legal system. Regulating or limiting something that is not causing the problem will not fix the problem." "Rising rates are a function of a down economic cycle, which we also saw in the mid 70s and mid 80s, when the insurance industry also responded with rate hikes. Even insurance industry executives will acknowledge the connection between their rates and their investments."

"We are all concerned about keeping good doctors. In Maryland a very small percentage of doctors (3%) are responsible for 51% of the malpractice payouts. It has to be costly to keep insuring those repeat offenders. If we are concerned about rising rates, wouldn't it make sense to take out the few bad doctors? That would surely bring the cost of insurance down for all of the remaining doctors and offer better protection for the health care consumer," concluded McCarthy.