Sacramento, CA – New research conducted by Consumer Watchdog reveals that medical malpractice insurance loss ratios in California hit historic lows after the state lifted its ban on pre-death pain and suffering damages in 2022, undercutting industry claims that the law would raise costs.
Analysis by Consumer Watchdog actuary Ben Armstrong, FCAAS, MAAA, found that the average loss ratio, which is the percentage of premiums paid out in claims, for the top five medical malpractice insurance companies in California were among the lowest in history the year after the pre-death pain and suffering ban was lifted in 2022 – at a mere 7%.
“The idea that pre-death pain and suffering damages are driving up medical costs is a nothing burger,” said Consumer Watchdog President Jamie Court. “With loss ratios at historic lows even after the law’s passage, the data clearly shows there is no cost impact to physicians or patients.”
Until 2022, California was only one of only four states without predeath pain and suffering damages – the right of survivors to recover damages for a victim’s pain and suffering before they die. SB 29 (Laird), which seeks to continue predeath pain and suffering, will be voted on in the Senate Appropriations Committee on Friday. Consumer Watchdog wrote the committee about its research.
California’s 10-year average loss ratio from 2014 to 2023 was just 35.8%, far below the national average of 50.6%, according to data from the National Association of Insurance Commissioners (NAIC). “California physicians continue to overpay for their medical malpractice premiums compared to physicians elsewhere based on lower loss ratios in the state,” Court added.
California’s previous prohibition on pre-death pain and suffering effectively denied justice in cases of fatal medical negligence, where patients endured unimaginable pain, but their voices were silenced by death before a court could hear their story. This gave defendants an incentive to stonewall their cases until they died.
The change enacted in 2022 finally gave California families the ability to seek accountability for that suffering. SB 29 would preserve this essential right; a right that grieving families have had in other states, and ensure California is no longer an outlier in its failure to acknowledge victims’ pain.
The legislation is deeply personal to families like that of Tracey Mueller Gibbs of San Diego, whose son Rowan tragically died due to medical negligence, and who was unable to find an attorney to take her case because of the inability to recover pain and suffering damages prior to his death. “This issue is profoundly personal to me,” said Gibbs. “It is my deep wish that no other family should ever have to endure the pain and suffering that my family has faced.” Gibbs wrote the legislature about her story to advocate for the continuation of pre-death pain and suffering damages.
