Tort Reform’s Impact on Health Care Costs

Back in 2004 the Congressional Budget Office (CBO) found that “caps on damage awards reduced the number of lawsuits filed, the value of the awards, and insurance costs.”

There is statistically significant evidence that medical tort reform is associated with a decrease in health care costs. A negative relationship between tort reform and health care costs in states where two medical tort reforms were passed can be plainly observed in the available data. In addition, by limiting physicians’ liability or capping damages awarded from malpractice suits, medical tort reform has the potential to generate tangible health care savings.

With evidence from numerous studies and recent findings from the American Action Forum (AAF) that medical malpractice reform could save more than $15 billion in premiums, Congress and the administration should reexamine the implications of our over-aggressive tort system.

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