Malpractice Insurance Reform
Another example of the unbelievable power of the insurance companies is found in the area of medical malpractice. To begin with, if a person suffers a catastrophic injury and needs long term care, the amount they or their family will receive from any verdict to pay for future medical care is actually paid-out annually – with the insurance company keeping most of the jury award. The annual payments stop at the death of the injured party. So there is no worry about a jury awarding too much. But the law does not specify that this information can be given to the jury. Below is an example that makes this more clear.
The plaintiff, the injured party, says they need $1,000,000 a year to cover costs of care due to a catastrophic injury. The plaintiff, injured party says they will live about 30 years. The total amount needed is $30,000,000.
The defense says the person could get by with $500,000 per year and will only live 4 years. The total amount needed is $2,000,000.
The jury decides the person will live 10 years and the amount needed is $1,000,000 per year, for a total of 10 years. The total award, the total amount needed is $10,000,000.
Now here is what takes place that the jury never hears about. The law passed by the insurance company, which is not told to the jury, is that the award by the jury ($10,000,000) is divided by the life expectancy put forward by the plaintiff (30 years) even though not used by the jury. The annual amount to be paid is $10,000,000 divided by 30 which equals $333,333.
This is even less than the defense, the entity who caused the injury, said was needed to keep the person alive!
Now here is the extra kicker. When ever the person dies the payments stop. If the injured party died in 10 years they would only have received $3,333,333. Much less than what the jury awarded to cover this time period. And upon death, the remaining money doesn't go to the family, it goes back to the insurance company (actually the insurance company kept it, as they never had to surrender it in the first place, just the interest and a little of the principle as they made the annual payments)!
If the jury new this, they could award the highest amount with no worries, because even if they gave the “big” number, the payments stop and the insurance company keeps the remainder when the patient dies (click here for Missouri statute 
).
This is a terrible law and we urge you to contact your state representative and ask for the jury to be fully and completely informed.
These laws are primarily controlled by the Missouri State Government. You may contact your representatives via the following links:
Additionally, on many punitive damage claims, 50% of the money goes to the state of Missouri (click here for Missouri statute ). Ask your representative to make sure this money goes to improving health care and education.
Missouri State Representatives - find contact information for your state representatives.
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United States House of Representatives - provides information on the representatives, current bills, and much more.
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Missouri General Assembly - provides valuable information concerning what is happening with our government, including tracking bills.
The last major pro-insurance bill was passed in 2005. Click here to see how the elected representatives voted.