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Georgia malpractice premium cuts haven't panned out

ATLANTA Many of Georgia's medical malpractice insurers have hiked their premiums since sweeping reforms took effect last year -- despite claims that the legislation would reduce rates for doctors.

According to an Associated Press analysis of state insurance records, six of the state's top insurers of doctors and dentists have increased their liability rates. In some cases, the rates have gone up by a third.

New restrictions on malpractice cases became law in Feburary 2005. The reforms included a 350-thousand dollar limit on jury awards for pain and suffering, tougher standards for expert witnesses in malpractice trials, and new incentives for patients to settle out of court.

Doctors and hospitals contended the measures would curb malpractice insurance rates and help lure more doctors to Georgia. Business lobbies also threw their weight behind the legislation.

But trial lawyers and patient advocacy groups argued that limiting damage awards puts an arbitrary price on a victim's life. They said insurers have fostered a false crisis by driving up premiums in a market with little competition.

Insurance Commissioner John Oxendine says rate increases were crucial to entice more competition in Georgia's malpractice insurance market. He said the smaller insurers are hiking their rates to "catch up" to market leader, Atlanta-based M-A-G Mutual.

That company, which covers roughly three out of four doctors in Georgia, has frozen its rates since the malpractice measures took effect. Defenders of the malpractice reforms point to M-A-G Mutual's commitment to freeze its rates as an example of their success.