In uranc
y no-fault
the collection p
but grou
err USED TO that you
had to ha 2,000-$8,000 cover-
in your own medical policy,
but if you ran offtb 1'0 d and hit
a tree, that $3,000 all you
had," said Bucld , whose or­
ganization rep nts 55 state
insurers of various sizes. "(No­
fault) doesn't m n you aren't
going to have disputes. It just
frees up money that used to go
into the legal ystem."
Buckles said a state that re­
lies on the legal system to sort
practice costs. out fault virtually ensures that
He cites Maine as an example people have to wait longer to get
of a state that has greatly re- disputes settled and claims paid.
duced its malpractice litigation "Meanwhile, they're bleeding
as it has adopted managed care. to death, " Buckles said.
"There will be much I liti- This isn't the first time insur-
gation because the standard of ance companies and the Trial
care becomes established before Lawyers have squared off' Last
physicians take care of the pa- year, the Trial Lawyers spear­
tient," Potchen id. "Now, the headed a successful campaign to
tandard of care is established defeat Proposal D, a bill span-
by jury afteI: ta sored . by AAA Michigan that
_�IJi.-ruld lul�.,fQIlE¥i, �ck �tes for
By DAVID GHOSE
Sp!C.' to the Mlchlg.n CltlBn
medical liability premium per
hospital bed in Michigan was
5,700. In Detroit, the average
is 8,600. The Michigan figure
is more than four tim the na­
tional average and the Detroit
figure is more than six times the
national average.
"The solution proposedby the
other side always seems to be to
treat the symptom without ever
addressing the qu tion of bad
doctors," Stoddard said. In addi­
tion, Jane Bailey, executive di­
rector of the Michigan Trial
Lawyers Association, said
Michigan's malpractice climate
is not a burden. She said the
liability systems rep ents less.
than 1 percent of the state's total
!t care cog , .
Ba· c
legal system are improper be­
cause lawsuits against doctors
have decrea ed in recent years
- from about 3,600 filings in
1986 to about 2,200 today.
If the medical community
views malpractice premiums as
too high, Bailey adds, it should
investigate why Michigan insur­
ance companies have not low­
ered their premiums.
HOWEVE� INSURANCE
interests contend the consider­
able amount of time that elapses
between a malpractice incident
and its eventual resolution
slows down the pricing mecha­
nism.
"You might be looking at a
span of five to 10 years before
you really know what the ulti­
mate costs are going to be," said
Brian Hodge, vice president of
communications for Michigan
Physicians Mutual Liability Co.
"That makes it difficult to make
rapid changes in the cost of the
insurance ."
In addition, the insurance ad­
vocates argue the decline in law­
suits is mi leading. Lawsuits
have decreased overall since
1986, they admit, but are once
agai n on the ri .
"We are in a it.uation now
wh re we can't afford to reduce
premiums because we don't
know what the future costs will
be," Hodge said.
Gary Mitchell, a spokesman
for the Professional Inde­
pendent Insurance Agents of
Michigan, called trial lawyers
defense ofth legal ys m a "po­
litical" m I ticket."
continued from A 1
ing th k force' proposals.
"We've gotta do whatever it
to m ke su we're not out
of sight nor out of mind," Young
id,
mOCTa ntly blasted th
Engl r dministration for ward­
ing contr cts to campaign
contributo , something Engler
att ck d former Gov. James
Blanchard for in th 1990 elec­
tion.
Engler pok m n vah D1 ntly
d ni th char nd cit
figur howing the tate
w 2,000 f r con r cts
han in HI nchard's I t y r.
"YES, IT LIMITS benefits
and limits rights to sue, but
brings costs down," Buckles
. d. "Insurance people feel that
there are lots ofparts of this new
deal they don't like, but it will be
good for the consumer."
Even if they fit the old no­
fault conditions for filing a suit,
under PA 143, uninsured drivers
and drivers oonsidered to be 99
percent at fault in an accident
can no longer sue for extra dam­
ages.
The a also has a large anti­
fraud and section that hasn't re­
ceived much publicity, said AAA
lobbyist Bill Cillutto.
First Home?
First Home Mortgage?·
First Federal
l!I Loan tart Pre-Qualifie You For Mortga e Financing
B fore You Buy Home.
'I he first step toward buying that h me i \\ hen �(1I tcp in« any
Fir t Federal office and appl, f r a free [3 LoanStart "Prc-Quali cation Certificate."
On e ou have it, it tell the seller vou'rc a criou buvcr. That' a big edge.
• • I
nd the [3 Rate Protecti n Plan "1 k -in'' your mortgage inter t
t a very mp titiv rate. 'I'hat's peace of mind .. icc the ricndly people
at ir: t Federal f r detail . Thcv make financing your fir thorne
the I t thing ou have to worrv about.
1Zi 'Loan tart Pr .
On of
t Federal of i higan,
inc 1934.
22 Ph n : (313) ·14
I .!.hN�
LAN I G (C pita! News Servi )
h Ith COS continue
to rise, ,I wy , docto and in-
suran inte deba who is
to blame for Michigan' much­
maligned malpracti environ­
ment.
Lawy r advocates' claim the
legal system is a victim of a'
. . Meanwhile
rance interes
In recent year , critics of
Michigan's malpractice climate
have charged high p miums
contribute to skyrocketing
health-car costs that are
passed on to consumers.
The 1992 average hOB pi ta I
. LEGI LATOR THI
pring passed a legal-reform
p ckage that add th e
be
lie
system m vo oUB SUI
However, consumer and legal
advocates contend the Legisla­
ture has taken the wrong ap­
preach.
Rick Stoddard, a repre­
sentative of the Michigan Con­
sumer Federation, argues many
malpractice critics are not ad­
dressing the issue of bad doctors.
TOP: Thom Lloyd, Pre Ident of
HPCC pictured with Am enah
Omar, Dean of Student Service .
LEFT: Ken net h L. S cot t ,
. Edltor/publl her of Metropolitan
DetroIt Dlr ct Access magazine;
RIGHT: Willi a m Rob I n a 0 n I
Pre Ident of th HP M n'a Forum
and Director of Robinson Hou e;
and BOTTOM: John Hili, Pr aldent
of B. Hili Contrectlng, Inc. ere In
ett ndanc et the HP Llona Club
meeting end luncheon t I Am
Supperclub on Hemllton. (photo by
en g HilI)
Gl
L£. R rol I
f'llth.