IDEAS home Printed from https://ideas.repec.org/a/ucp/jlstud/v36y2007is2ps9-s45.html
   My bibliography  Save this article

Physicians' Insurance Limits and Malpractice Payments: Evidence from Texas Closed Claims, 1990-2003

Author

Listed:
  • Kathryn Zeiler
  • Charles Silver
  • Bernard Black
  • David A. Hyman
  • William M. Sage

Abstract

Physicians' insuring practices influence their incentives to take care when treating patients, their risk of making out-of-pocket payments in malpractice cases, and the adequacy of compensation available to injured patients. Yet these practices and their effects have rarely been studied. Using Texas Department of Insurance data on 9,525 paid malpractice claims against physicians that closed in 1990-2003, we provide the first systematic evidence on levels of coverage purchased by physicians with paid liability claims and how those levels affect out-of-pocket payments and patient compensation. We find that these physicians carried much less insurance than is conventionally believed, that their real primary limits declined steadily over time, that policy limits often act as effective caps on recovery, and that personal contributions by physicians to close claims were rare. Our findings call into question a number of common assumptions about the relationship between physicians' insuring practices and the medical malpractice liability system. (c) 2007 by The University of Chicago. All rights reserved.

Suggested Citation

  • Kathryn Zeiler & Charles Silver & Bernard Black & David A. Hyman & William M. Sage, 2007. "Physicians' Insurance Limits and Malpractice Payments: Evidence from Texas Closed Claims, 1990-2003," The Journal of Legal Studies, University of Chicago Press, vol. 36(S2), pages 9-45, June.
    • Handle: RePEc:ucp:jlstud:v:36:y:2007:i:s2:p:s9-s45
    DOI: 10.1086/519467
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/519467
    File Function: link to full text
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/519467?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tom Baker, "undated". "Blood Money, New Money, and the Moral Economy of Tort Law in Action," University of Connecticut School of Law Working Papers uconn_ucwps-1005, University of Connecticut School of Law.
    2. Viscusi, W Kip & Born, Patricia, 1995. "Medical Malpractice Insurance in the Wake of Liability Reform," The Journal of Legal Studies, University of Chicago Press, vol. 24(2), pages 463-490, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alex Gershkov & Benny Moldovanu & Philipp Strack & Mengxi Zhang, 2023. "Optimal Insurance: Dual Utility, Random Losses and Adverse Selection," ECONtribute Discussion Papers Series 242, University of Bonn and University of Cologne, Germany.
    2. Michael D. Frakes & Jonathan Gruber, 2018. "Defensive Medicine: Evidence from Military Immunity," NBER Working Papers 24846, National Bureau of Economic Research, Inc.
    3. Sebastian Panthöfer, 2022. "Do doctors prescribe antibiotics out of fear of malpractice?," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 19(2), pages 340-381, June.
    4. Daniel Carvell & Janet Currie & W. Bentley MacLeod, 2012. "Accidental death and the rule of joint and several liability," RAND Journal of Economics, RAND Corporation, vol. 43(1), pages 51-77, March.
    5. Leonardo Felli & Johannes Koenen & Konrad O. Stahl, 2011. "Competition and Trust: Evidence from German Car Manufacturers," CESifo Working Paper Series 3358, CESifo.
    6. Bernard Black & David A. Hyman & Charles Silver, 2009. "The Effects of “Early Offers” in Medical Malpractice Cases: Evidence from Texas," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 6(4), pages 723-767, December.
    7. Zhou, Jun, 2010. "Determinants of Noneconomic Damages in Medical Malpractice Settlements and Litigations: Evidence from Texas since 1988," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 348, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    8. Michael D. Frakes & Matthew B. Frank & Seth A. Seabury, 2017. "The Effect of Malpractice Law on Physician Supply: Evidence from Negligence-Standard Reforms," NBER Working Papers 23446, National Bureau of Economic Research, Inc.
    9. David A. Hyman & Bernard Black & Charles Silver, 2011. "Settlement at Policy Limits and the Duty to Settle: Evidence from Texas," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 8(1), pages 48-84, March.
    10. Frakes, Michael & Jena, Anupam B., 2016. "Does medical malpractice law improve health care quality?," Journal of Public Economics, Elsevier, vol. 143(C), pages 142-158.
    11. Myungho Paik & Bernard Black & David Hyman, 2013. "The Receding Tide of Medical Malpractice Litigation: Part 2—Effect of Damage Caps," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 10(4), pages 639-669, December.
    12. Malani, Anup & Reif, Julian, 2015. "Interpreting pre-trends as anticipation: Impact on estimated treatment effects from tort reform," Journal of Public Economics, Elsevier, vol. 124(C), pages 1-17.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yun‐chien Chang & Theodore Eisenberg & Han‐Wei Ho & Martin T. Wells, 2015. "Pain and Suffering Damages in Wrongful Death Cases: An Empirical Study," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 12(1), pages 128-160, March.
    2. David A. Hyman & Bernard Black & Charles Silver, 2011. "Settlement at Policy Limits and the Duty to Settle: Evidence from Texas," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 8(1), pages 48-84, March.
    3. Charles L. Baum, 2020. "The effects of medical malpractice tort reform on physician supply an analysis of legislative changes from 2009 to 2016," Southern Economic Journal, John Wiley & Sons, vol. 87(2), pages 540-575, October.
    4. Jonathan Yoder, 2008. "Liability, Regulation, and Endogenous Risk: The Incidence and Severity of Escaped Prescribed Fires in the United States," Journal of Law and Economics, University of Chicago Press, vol. 51(2), pages 297-325, May.
    5. Jonathan Klick & Thomas Stratmann, 2007. "Medical Malpractice Reform and Physicians in High-Risk Specialties," The Journal of Legal Studies, University of Chicago Press, vol. 36(S2), pages 121-142, June.
    6. Jingshu Luo & Hua Chen & Martin Grace, 2022. "Medicaid expansion, tort reforms, and medical liability costs," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 89(3), pages 789-821, September.
    7. Galasso, Alberto & Luo, Hong, 2016. "Tort Reform and Innovation," CEPR Discussion Papers 11358, C.E.P.R. Discussion Papers.
    8. David A. Hyman & Bernard Black & Kathryn Zeiler & Charles Silver & William M. Sage, 2007. "Do Defendants Pay What Juries Award? Post‐Verdict Haircuts in Texas Medical Malpractice Cases, 1988–2003," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 4(1), pages 3-68, March.
    9. Patricia Born & Faith Roberts Neale, 2014. "The Differential Effects of Noneconomic Damage Cap Levels on Medical Malpractice Insurers," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 17(2), pages 163-181, September.
    10. Patricia Born & W. Kip Viscusi & Tom Baker, 2009. "The Effects of Tort Reform on Medical Malpractice Insurers' Ultimate Losses," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 76(1), pages 197-219, March.
    11. W. Kip Viscusi & Patricia Born, 1999. "The Performance Of The 1980s California Insurance And Liability Reforms," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 2(2), pages 14-33, January.
    12. Klick, Jonathan & MacDonald, John, 2020. "Deterrence and liability for intentional torts," International Review of Law and Economics, Elsevier, vol. 63(C).
    13. Ronen Avraham, 2007. "An Empirical Study of the Impact of Tort Reforms on Medical Malpractice Settlement Payments," The Journal of Legal Studies, University of Chicago Press, vol. 36(S2), pages 183-229, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jlstud:v:36:y:2007:i:s2:p:s9-s45. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JLS .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.