Newsletter Navigation
- What Does Tort "Reform" Really Mean?
- The Real Culprit
- Auto Accident Do's and Don'ts
- Education and Professional News
- Work-Related Traffic Accidents
- Hill Boren Staff Contributes to the Community
What Does Tort "Reform" Really Mean?
During the past few months, much has been said about the so-called medical malpractice "crisis." Doctors complain that their malpractice insurance premiums are skyrocketing... all because of frivolous lawsuits and lottery-style jury awards.
Tort reform is double-talk for giving big insurance companies more rights than victims of medical malpractice. The Institute of Medicine said in 1999 as many as 98,000 people die in hospitals each year because of preventable medical errors. That number does not include victims of neglect who die in nursing homes and victims of malpractice, who are left paralyzed, brain-damaged or seriously injured.
The Real Culprit
The real culprit is the insurance industry, which controls virtually every aspect of America's health care system and is forcing doctors to pay for its recent investment losses. Big insurance companies, who are among President Bush's and the Congressional leadership's biggest campaign contributors, operate with a free hand because they are exempt from anti-trust laws.
The Real Answers
Here are some questions you often hear, along with the real answers.
Q: I heard that doctor's malpractice premiums are driving up the costs of health care.
A: WRONG! Medical malpractice liability premiums amount to less than 1% of total health care costs. The Consumer Federation of America reports that medical malpractice premiums comprise only 0.59% of national health care costs.
Q: I heard that frivolous lawsuits and skyrocketing jury awards are driving up malpractice insurance premiums for doctors.
A: WRONG! Insurance companies are solely responsible for the medical liability "crisis." In a good economy, insurance companies lower their premiums to attract more customers, to compete with other insurance companies, and to acquire more revenue to invest in the stock and bond markets. Higher rates of return on investments go right into the pockets of big insurance companies, and insurance company executives make high salaries and want to protect their own pockets. The recent downturn in the stock and bond markets, coupled with risky investments, has resulted in investment losses for big insurance companies. For example, St. Paul Insurance Co. lost $108 million when Enron collapsed. To make that money back, big insurance companies pass those costs on to their customers, the doctors, by increasing their premiums. Consumer groups, a bipartisan legislative committee, and even the insurance industry itself say insurers' bad business practices, not jury awards, drive up premiums: "I don't like to hear insurance company executives say it's the tort system -- it's self inflicted," -- Donald J. Zuk, Chief Executive of Scpie Holdings Inc., a leading malpractice insurer in California (Wall Street Journal, June 24, 2002).
Q: I heard that frivolous claims drive up the cost of doctors' insurance.
A: WRONG! Insurers themselves admit that they don't settle frivolous claims. "In interviews with liability insurers that I undertook, the most consistent theme from them was: 'We do not settle frivolous cases!' ...[Insurers'] policy on frivolous cases is based on the belief that if they ever begin to settle cases just to make them go away, their credibility will be destroyed and this will encourage more litigation," Neil Vidmar, Ph.D., Russell M. Robinson II Professor of law at Duke Law School.
Q: I heard that caps on jury awards would lower malpractice premiums.
A: WRONG! Big insurance companies like to say that California's $250,000 cap on damages is a model for so-called "reforms" in other states, like Tennessee. The facts show -- and insurers and tort "reformers" admit -- that caps and tort "reform" WON'T lower doctors' premiums. In California, where the cap on damages is $250,000, the average actual premium is $27,570. That is 8% higher than the national average in states where there are NO caps (Medical Liability Monitor, 2001). Here in Tennessee, a state with no caps on damages, rates are only $18,487 a year. Malpractice premiums in California increased by 190% during the first 12 years following enactment of the $250,000 MICRA cap. It took California's Proposition 103 -- insurance reform -- to lower and stabilize malpractice premium rates.
The Solution
Until we reform the insurance industry and remove its stranglehold on the health care system, we won't be able to reduce and stabilize malpractice premiums for doctors, or, most important, assure access to care for patients.
Instead of helping the insurance industry take away people's rights, why not remove the anti-trust exemption for big insurance? Under the current exemption, big insurance companies are allowed to conspire with one another to fix prices. The insurance industry ought to play by the same rules as every other business in America. Furthermore, the insurance industry should be forced to provide honest and open accounting so that Enron-style accounting practices don't continue to go unpunished.
The insurance industry shouldn't have more rights than patients. Please tell your legislator "NO" -- we're not going to solve big insurance companies' risky investment problems on the backs of patients who are victims of medical malpractice.
Insurance companies suffer from a self-inflicted wound and now seek to heal themselves at the expense of clients like you. Tell big insurance to heal themselves!
Auto Accident Do's and Don'ts
If you are involved in an automobile accident, you face the possibility of financial losses and even the possible revocation of your driver's license.
First, everyone needs to fully insure their automobile BEFORE an accident occurs. Keep in mind that an insurance company's obligation to pay for damages to property or injury that you may cause in Tennessee is limited by how much insurance you buy. Any damages beyond the amount that insurance may cover will be your responsibility if you cause the wreck. Today, a new automobile can run well in excess of $50,000. Many insurance policies only cover property damage up to $10,000 or $25,000. This means if you total a $50,000 automobile and only have a $10,000 or $25,000 in automobile property damage liability, you would be responsible for the difference. Hill Boren recommends buying as much insurance as possible and obtaining an "umbrella" that would cover catastrophic losses, typically up to one million dollars.
- Stop your car. NEVER leave an accident scene.
- If you are not injured, safely get out of your car.
- Call the police immediately and call medical personnel if ANYONE is injured.
- Do not attempt to assist any injured person, as you could cause additional injury.
- If injured, wait in your car for medical assistance.
- When the police arrive, tell them what happened.
- Insist that an accident report be prepared so you can prove the accident took place.
- Provide, and get from the other driver, the driver's license, registration and insurance information.
- Write down names, addresses and phone numbers of all drivers, passengers and other witnesses. Make notes of any statements they make at the scene.
- If the accident involves a commercial or company vehicle, get the company information (name, address, phone number).
- Look around the accident scene carefully. Check to make sure traffic lights are working properly and check for obstructions to vision. Make note of weather and road conditions and for skid marks or gouge marks on the road.
- Contact your insurance company (whether the accident is your fault or not) and your attorney promptly. Share the information you have gathered with them.
Education and Professional News
Sherry Percival, Greg Petrinjak, Bobby Russ and Chris Taylor have recently attended seminars of the American Trial Lawyers Association (ATLA) and/or the Tennessee Association for Justice (TTLA). James Krenis attended the ATLA National College of Advocacy seminar in Birmingham, AL on Civil Litigation and an evidence seminar in Memphis.
Bobby Russ' article "Can We Talk? -- The Rest of the Story or Why Defense Attorneys Should Not Talk to the Plaintiff's Doctors" has been accepted for publication in the February 2003 Tennessee Bar Journal.
Attorneys at TTLA Seminars and Nursing Home Seminars have been privileged to hear Attorney Frankie Wade speak on legal ethics. Wade participated on the Tennessee Bar Association's committee that drafted the new rules of professional responsibility, an ethical code that governs how attorneys practice.
Jeff Boyd spoke on current issues and cases regarding Tennessee Workers Compensation law at the Tennessee Trial Lawyer's Association 2002 Annual Review and Ethics Seminar.
Work-Related Traffic Accidents
No matter if you are just running across town to pick up something for the office or hauling things long distance, driving on the job puts you at risk for a traffic accident.
If you are injured in an automobile accident in the process of doing business for your employer, you may be eligible for workers' compensation benefits. Deciding if you were engaged in business when you were injured will depend on all the facts surrounding the accident.
The time following an on-the-job traffic accident is extremely important. You should:
- Consult your Hill Boren attorney immediately.
- Do not talk to the other side's insurance company without first consulting your lawyer.
- Do not sign anything without consulting your lawyer.
Since the outcome of these types of cases depends on each case's particular facts, consulting with an attorney will help guide you through the process.
Your Hill Boren attorney will help determine if the facts surrounding the accident entitle you to workers' compensation. We can help you notify your employer of the accident's circumstances.
Even if you were at fault for the accident, we can still pursue a claim for workers' compensation benefits if you sustain permanent injuries. If the other driver is at fault, you can still proceed for workers' compensation benefits in addition to a separate action for damages arising from the car wreck.
Most on-the-job auto accidents are a complicated affair. Injuries may require surgery and even after corrective surgery, the accident may leave a person disabled or in need of long-term therapy or new job training. There are many important issues to understand and it is possible for your situation to change over time. Please call Hill Boren if we can help you following any job-related injury.
Hill Boren Staff Contributes to the Community
Hill Boren Builds Second Habitat Home
Grab your hammer. Hill Boren seeks your help in building another Habitat House. This home, located in Abner Estates, is being built for Bonnie Hathcote and her 12-year-old daughter. The first Hill Boren sponsored home was completed in spring of 2002 with help from clients, friends and the families of our staff members. The second house will get underway April 26th and continue for eight consecutive Saturdays. Attorney Sherry Percival is the project coordinator. If you want to volunteer, you can reach Sherry at 731-423-3300 or 1-800-727-0622.
Foster Families' Christmas Joy
Presents and food baskets, with a week's worth of groceries, were delivered to families through West Tennessee Children's Services. A Hill Boren employee committee worked hard to collect funds, matched by the firm, and shop for clothing, food and gifts for 17 children living with 25 foster families. Once the staff discovered that the foster children often carried their belongings from place to place in a trash bag, they pitched in and saw that each child received a new suitcase as well as clothing, gifts and a food basket.
Donated Fire Equipment
The Madison County Fire Department was the recipient of donated equipment thanks to Hill Boren attorney James Krenis. A volunteer fire fighter, Krenis was able to arrange for the donation of 10 sets of serviceable fire boots, helmets, turnout coats and bunker pants from his former fire company in New Jersey, where he served as assistant chief before moving to Madison County.
Lambuth University Volunteer
John Hamilton serves as a liaison between the Lambuth University Class of 1990 and the University. In this capacity, he also assists with fundraising efforts.
SNAP
Attorney Sherry Percival serves as the president of SNAP (Saying No to Adolescent Pregnancy). Recently, she was the guest speaker for the annual teen parent conference held at the UT Agriculture Complex.
Dr. Martin Luther King, Jr. Day Event
T. Robert Hill was the keynote speaker at the Dr. Martin Luther King, Jr. Day event sponsored by the Jackson-Madison County Chapter of the NAACP. The legacy of Dr. King was honored at the New Hope Baptist Church in East Jackson, where Hill presented a speech, "Remember. Celebrate. Act." He asked all to remember past racial injustices as a way to prevent them from being repeated.
Hill, a long time supporter of 100 Black Men, a group devoted to minority scholarships, recently served as co-chair of the group's Gala fund raiser. As master of ceremonies, Hill made the recognition and awards presentations at the event.
Spending Time with Youth
You might catch attorney John Hamilton on Channel 7 sports during the winter. He spends his free time on the basketball court as a referee for the Tennessee Secondary School Athletic Assoc (TSSAA). This is his eighth year as a referee.
"I referee because I grew up in a basketball town and have always been a big basketball fan. I definitely plan to stick with basketball for as long as I can get up and down the court," Hamilton said. "You basically learn by fire during games. In sticky situations, I have to get the rule right. That is a challenge when you find yourself at a critical time of the game. There's always something that can happen that you've never seen before."
Chris Taylor just completed his fourth season as football coach for Memphis' Chickasaw Junior High School, leading the team to just shy of the City Championship. His team has played in the championship 3 of the 4 years he has coached. Hill Boren provided uniforms for the school's girl's basketball team this season.
