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Medical-Liability Insurance Update

August 7, 2003

A deal is near.

The Capitol is abuzz with rumors that the governor will hold a press conference tomorrow to announce terms of a tentative agreement on the contentious medical liability issue. Moreover, it is all but certain that the governor will call a special session next week for final action on the proposed legislation.

This has been a bitter and hard-fought battle. Now it is, finally and ingloriously, coming to an end. Or so it seems.

Prior to the governor’s announcement, it would be premature to comment on specific provisions in the settlement package. In general, however, AIF can state that proponents of strong medical-liability reform will not be particularly pleased with the final deal. For example, the agreed-upon cap on non-economic damages is likely to be too high to provide doctors with any reasonable likelihood of immediate or long-term premium relief.

Don’t be surprised if interest sparks anew in a constitutional amendment for a California-style cap on non-economic damages.