Few would disagree with doctors who claim that the high cost of medical malpractice insurance premiums is unsustainable. The disagreement among legislators and those in the medical community, however, revolves around the cause of the high medical malpractice insurance premiums. Many Republicans, insurance companies, and members of the medical community point to frivolous lawsuits and increasing jury awards for plaintiffs as the cause of doctors’ exorbitant premiums. One proposed solution caps non-economic damages plaintiffs may receive for pain and suffering in medical malpractice cases. This proposed remedy to the medical malpractice crisis is embodied within the Help, Efficient, Accessible, Low-Cost, Timely Health Care (HEALTH) Act of 2004. In May 2004, the Republican led House of Representatives passed the HEALTH Act, a bill that caps plaintiffs’ noneconomic damages at $250,000.
In contrast, the American Association of Trial Lawyers, as well as many Democrats and consumer watch groups, claim that lawsuits and high damage awards are not to blame for doctors’ increasing insurance premiums. These groups point instead to other factors, such as the cyclical nature of the insurance industry and the losses insurance companies have incurred in the stock market, as the cause for rising medical malpractice insurance premiums. . . .