Study: Medical Malpractice Reform Would Do Little To Reduce Health Care Costs

Throughout the health care debate, many have brought up the idea that medical malpractice lawsuits are a driving factor in the rising costs of health care. However, conclusions in a recent study show making changes to affect medical malpractice lawsuits would actually do little to change the overall cost of health care.

Proponents of reform such as setting caps on lawsuits argue medical malpractice suits and fear of being sued cause medical professionals to practice defensive medicine, including ordering tests and procedures not considered necessary, in order to make sure they cover their bases.

Overturning or eliminating caps, much like the law that was overturned in February 2010 by the Illinois Supreme Court, is actually shown to do little to reduce the cost of health care, according to a 2009 study by the non-partisan Congressional Budget Office.

The study showed that the direct cost of malpractice insurance premiums and court decisions, in addition to the costs of defensive medical, actually account for less than two percent of overall health care spending.

That means even a 25 percent or 30 percent reduction in malpractice costs would lower health costs by 0.4 percent to 0.5 percent and the effect on insurance premiums would be equally as small, according to the study.

The group came to a similar conclusion in a study conducted during the Bush Administration.

An investigation by Consumer Reports showed reducing several of the most deadly infections, many of which are preventable, would do more to affect the overall cost of health care than tort reform.

Consumer Reports - Hospital Infections

Congressional Budget Office study

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