Will Tort Reform Bend the Cost Curve? Evidence from Texas

Paik, Myungho; Black, Bernard S.; Hyman, David A.; Silver, Charles

doi:10.1111/j.1740-1461.2012.01251.x

Cited by 42 publications

(19 citation statements)

References 32 publications

(10 reference statements)

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“…Following Paik et al [ 22 ], we also identify three additional non-treated subsamples, comprised of insurers operating in states unaffected by tort reforms during our sample period. The first subsample consists of insurers operating in the 41 states that did not enact a major tort reform from 2001 to 2010.…”

Section: Methodsmentioning

confidence: 99%

“…Of the studies that specifically consider the consequences of the Texas tort reform measures enacted in 2003, the most pertinent to our study is Paik et al [ 22 ] who examine how Medicare spending changed after the enactment of the Texas reform measures. 7 Using both a county-level and state-level analysis, they find no evidence that Medicare spending declined after the enactment of the reform and provide a degree of evidence that spending increased following the 2003 reforms.…”

Section: Introductionmentioning

confidence: 99%

“…7 Using both a county-level and state-level analysis, they find no evidence that Medicare spending declined after the enactment of the reform and provide a degree of evidence that spending increased following the 2003 reforms. The analysis of Paik et al [ 22 ] is insightful because it suggests that physicians in Texas did not alter defensive medicine practices in a way that led to lower health insurance cost. In fact, the reform in Texas may have altered provider behavior in ways that increase healthcare costs, which is the opposite effect that many proponents of the Texas tort liability reform had predicted.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The net effects of medical malpractice tort reform on health insurance losses: the Texas experience

2017

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In this paper, we examine the influence of medical malpractice tort reform on the level of private health insurance company losses incurred. We employ a natural experiment framework centered on a series of tort reform measures enacted in Texas in 2003 that drastically altered the medical malpractice environment in the state. The results of a difference-in-differences analysis using a variety of comparison states, as well as a difference-in-difference-in-differences analysis, indicate that ameliorating medical malpractice risk has little effect on health insurance losses incurred by private health insurers.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The net effects of medical malpractice tort reform on health insurance losses: the Texas experience

2017

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“…[30] In these regression analyses, state effects were combined and an average effect was estimated for that particular reform. [21] In our analysis, we do not identify an average effect from noneconomic caps, but instead focus on estimating a state-level impact of this reform.…”

Section: Methodsmentioning

confidence: 99%

Caps on noneconomic damages’ effect on the number of paid malpractice claims in various American states

Muhlestein

Shoben

Wickizer

2016

IJH

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Background: Tort reform with caps on noneconomic damages, such as pain and suffering, has been proposed as a way of decreasing the national cost of healthcare in the United States. In this paper we measure the impact of noneconomic damage caps at the state level. Methods: Changes in the rate of paid claims are estimated using an interrupted time series design which identifies changes in trends following the implementation of an intervention. Data from the National Practitioner's Data Bank are used to create yearly trends in state malpractice claims using a linear spline model with a knot at the year that noneconomic caps were implemented to estimate the effect of the noneconomic caps. The effect of statutes of limitations are also modeled with a spline model. Finally, a difference-in-difference design matches states that instituted or significantly changed noneconomic caps to states that did not. Findings: Of the fifteen states that implemented caps on noneconomic damages or significantly changed their caps since 2000, two had statistically significant differences in the absolute number of paid claims and six had significant changes to their trend of paid claims. Conclusions: Tort reforms that address caps on noneconomic damages, though facially similar, have significantly different results when implemented in individual states. Qualitative studies of the individual state policies need to evaluate how the state policies differ and why they led to different results to direct other states and the federal government as they consider similar policies.

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“…12 In keeping with this understanding, we suggest using the strength of physicians' belief in tort reform to facilitate the adoption and implementation of other measures more likely to improve access and efficiency, instead of using its direct effects to justify its enactment. 13 If physicians value malpractice relief more than the public values retaining conventional tort remedies, Congress and the Obama administration might productively swap federal tort reform for health system improvements that require physician leadership or acquiescence either to be adopted or to be effective. These measures typically involve changing the amount and method of provider compensation or the organization of care delivery.…”

Section: What Physicians Might Exchange For Malpractice Reformmentioning

confidence: 99%