Issue Overview: A complex bill addressing flexibility, review provisions on awards and insurance regulatory reforms was passed. The one component that many have focused on as a required component of real medical malpractice reform is a cap on non-economic damages. This provision was not included. This issue remains on NFIB/Connecticut's priority list because affordable health-care costs continue to be the major issue facing Connecticut small businesses.
NFIB Position: NFIB/Connecticut supports medical malpractice reform that includes a cap on non-economic damages. A majority of states have acted over the last several years to cap non-economic damages in medical malpractice suits. NFIB supports the Connecticut State Medical Society position on capping non-economic damages.
Issue Status: Pending before the General Assembly this session.
What to Do: Contact your legislators and let them know what health-care costs mean in your business.
What to Say:
- This issue has a direct impact on the cost and availability of health-care services. Due to skyrocketing medical malpractice insurance rates, many small-business owners are finding it increasingly difficult to afford health insurance for themselves and their workers, and to locate specialty medical care from primary care physicians, OB/GYNs, surgeons and emergency room doctors.
- In 2003 Connecticut was identified as one of 18 states facing a severe medical malpractice insurance crisis. NFIB is strongly supporting legislation being pushed by the Connecticut State Medical Society that would cap non-economic damages. Caps have been passed in a majority of other states.
- Health insurance costs have been identified as the No. 1 problem affecting small-business owners!
- Capping just non-economic damages at $250,000 is crucial to improving access and affordability of health care. Economic damages such as present and future medical costs, lost wages, rehabilitation, home health care and childcare will continue to be unlimited.
- A cap will help end the practice of defensive medicine by greatly reducing the threat of frivolous lawsuits. According to an April 2002 Price Waterhouse Cooper's report, 7 percent of the increase in health-care costs are directly related to defensive medicine.
- This reform is modeled after the landmark California MICRA legislation enacted in the '70s. MICRA has succeeded in both protecting patients and keeping insurance affordable for providers.
- Doctors in 23 states with a cap on non-economic damages have been spared the rapidly increasing malpractice insurance premiums that have forced many doctors in Connecticut to move their practice or stop practicing altogether.
- The U.S. Department of Health and Human Services has reported that states with limits of $250,000 on non-economic damages have average premium increases of 12-15 percent compared to 44 percent in states without caps like Connecticut.
- NFIB believes that capping non-economic damages will inject more fairness into the medical malpractice legal system, reduce unnecessary litigation and legal costs, and protect the rights of those with legitimate claims.
