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The relationship between the markets for health insurance and medical malpractice insurance

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  • J. Bradley Karl
  • Patricia H. Born
  • W. Kip Viscusi

Abstract

This article evaluates the interdependence of medical malpractice insurance markets and health insurance markets. Prior research has addressed the performance of these markets, individually, without specifically quantifying the extent to which they are linked. Increasing levels of health insurance losses could increase the scale of potential malpractice claims, boosting medical malpractice losses, or could embody an improvement in medical care quality, which will reduce malpractice losses. Our results for a state panel data set from 2002 to 2009 demonstrate that health insurance losses are negatively related to medical malpractice insurance losses. An additional dollar of health insurance losses is associated with a $0.01–$0.05 reduction in medical malpractice losses. These findings have potentially important implications for assessments of the net cost of health insurance policies.

Suggested Citation

  • J. Bradley Karl & Patricia H. Born & W. Kip Viscusi, 2016. "The relationship between the markets for health insurance and medical malpractice insurance," Applied Economics, Taylor & Francis Journals, vol. 48(55), pages 5348-5363, November.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5348-5363
    DOI: 10.1080/00036846.2016.1176119
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    Cited by:

    1. Patricia H. Born & J. Bradley Karl, 2016. "The Effect of Tort Reform on Medical Malpractice Insurance Market Trends," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 13(4), pages 718-755, December.

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