Did the Texas liability cap, adopted in 2003, lead to lower malpractice rates?
ANSWER 1. Our study does not address this question. We looked at malpractice claims that were closed from 1988 through 2002. We are planning to examine this matter when data for later years are released. ANSWER 2. Reports indicate that premiums for malpractice coverage in Texas declined in 2003 and 2004, and that insurance companies also entered (or re-entered) the Texas market after tort reform was enacted. Because several explanations for these events are possible, no one can say with authority whether or how greatly the 2003 tort reform statute contributed to changes in market conditions. One possibility is that the liability caps and other tort reforms enacted in 2003 brought about the decline in premiums and market entry by insurers. Another possibility is that market conditions would have improved without tort reform because insurance is a cyclical business. A third possibility is that market conditions would have improved without tort reform, but that tort reform caused rates to
