For Immediate
Release: May 27, 2004
President Pro Tempore Cal Hobson
Tort Reform Committee Co-Chairs Tout Proposal
To Reduce Medical Malpractice Insurance Premiums
The special joint House-Senate Conference
Committee on tort reform today endorsed a comprehensive
lawsuit reform proposal, the co-chairpersons of the committee
announced.
Senator Mike
Morgan and Representative Jari
Askins said that, in addition to a long list of civil
justice system reform measures, the bill includes language
to allow the reorganization of the Physicians Liability
Insurance Company of Oklahoma and the Hospital Casualty
Corporation in a manner that would reduce the immediate
need for higher medical malpractice premiums for the state’s
health care providers.
By a 6-2 vote of the Senate conferees and an 8-2 vote of
House conferees, the committee sent its final proposal to
the full House of Representatives where Askins predicted
a Friday vote.
“We’ve done more than just provide physicians
with protection in future lawsuits. This bill will give
them immediate relief from the fast-rising malpractice insurance
premiums and by doing so it should ensure the availability
of medical care for all Oklahomans. This is Texas-plus,”
said Morgan, D-Stillwater.
After 15 hours of public hearings and weeks of intensive
study, Askins said committee members concluded that lawsuit
reforms alone wouldn’t curb the rising costs medical
malpractice insurance premiums for doctors in Oklahoma.
“We had to tackle the insurance crisis at the same
time,” said Askins, D-Duncan.
Morgan and Askins pointed out that PLICO, in particular,
is faced with raising $143 million in reserves and that’s
what’s driving up the cost of malpractice insurance
premiums.
“Despite all that we propose to do in the area of
tort reform, none of those measures could slow down the
increases in malpractice insurance rates facing doctors
in Oklahoma next year. That’s because what’s
forcing those rates up is the need to recapitalize PLICO,”
said Morgan.
“Our proposal will halt the skyrocketing increases
in malpractice insurance premiums now. It won’t keep
rates from ever increasing again, but future increases will
be limited and manageable,” said Askins.
The insurance reform proposal will allow the Oklahoma State
Medical Association to create a “medical professional
liability trust” to provide medical malpractice coverage
for doctors. It would allow HCC to do the same for hospitals
and nursing homes. The new trusts, the co-chairpersons explained,
would not have the same reserve requirements now imposed
by state law on PLICO and HCC.
The co-chairs said that the four public hearings held in
April and May offered a multitude of evidence of needed
tort reforms – all of which are included in the final
version of the bill.
Among those reforms are $300,000 caps on non-economic damages
on medical liability actions. The caps, the co-chairs explained,
can be removed in certain circumstances.
For example:
In a case where the defendant makes a settlement offer before
trial and the offer is not accepted, the jury would ultimately
have to render a verdict and award the plaintiff an amount
that is more than 50 percent than the settlement offer for
the caps to be removed.
In addition to reducing the overall costs of litigation
for defendants, Morgan and Askins said that they believe
the cap provisions will encourage the early settlement of
lawsuits.
The co-chairs said that other reform measures that are in
the final version of the bill include:
• An “I’m sorry” provision that
allows doctors to apologize for undesired outcomes from
medical treatment without fear of having their apology used
against them in a future lawsuit;
• Limitations on the practice of “forum shopping”
or going in search of a court friendly to the plaintiff;
• Defendants who are found less than 50 percent liable
can be held responsible for only the percentage of liability
assigned to them, which deals with the issue of joint and
several liability;
• Creation of business courts to deal with disputes
arising in the marketplace;
• Placing qualifications on expert witnesses in medical
liability cases;
• Limitations on land-owner liability in cases involving
outdoor recreational activities;
• Civil liability immunity for volunteer medical professionals;
• Limitations to prevent the abuse of the discovery
process;
• And a provision to discourage “frivolous lawsuits.”
Morgan and Askins lauded the work of the committee and thanked
Governor Henry,
Senate President Pro Tem Cal
Hobson and House Speaker Larry
Adair for their leadership.
“The committee members showed great dedication and
resolve over the last six weeks as we held more than 15
hours of public hearings and heard sworn testimony from
40 witnesses. All along the way there were those who continued
to say that we wouldn’t produce a meaningful reform
measure. But the committee members didn’t give up
and the result is what we promised all along, a tort reform
package that will work for Oklahoma,” Askins said.
“None of this would have been possible without the
leadership of Governor Henry, Senator Hobson and Speaker
Adair. Throughout our work they steadfastly supported the
open and inclusive process which created this landmark legislation,”
Morgan said.
For
more information contact:
President Pro Tempore's Office -
(405) 521-5605
