Cato Institute Disagrees with Medical Malpractice Damage Caps

The conservative Cato Institute, a Washington-based social policy think thank, has issued a position paper that argues that medical malpractice damage caps are bad for consumers. The Institute notes that such caps are bad policy because they may allow for insufficient damage awards to victims of medical malpractice as well as provide little incentive to insurance carriers to penalize doctors who commit malpractice.
“If the medical malpractice liability insurance industry does indeed protect consumers, then
policies that reduce liability or shield physicians from oversight by carriers may harm consumers.
In particular, caps on damages would reduce physicians’ and carriers’ incentives to keep track
of and reduce practice risk.”
It’s refreshing to read an objective study on such an important public policy issue.