US medical insurers are increasing medical liability premiums by up to 85% over the next year – better than the 100%-plus increases imposed over the previous two years, but still too high for doctors, who are quitting the profession in droves. Tort reforms that have been introduced by some states have not yet been in force long enough to force premiums down. Some states have also introduced caps on payments for non-economic damage to $250,000-$350,000.

Physician Insurers Association President Larry Smarr told trade newspaper Amednews that claims are continuing to grow and “there are still insurers in the market that are likely under-priced”.

The American Medical Association says 19 US states face a critical shortage of doctors as they quit or retire because of lower medicare payments and higher premiums. Only six states are “not showing signs of stress”, the AMA said.