Malpractice Insurance In Louisiana

Louisiana Medical Malpractice Act

During the medical malpractice insurance crisis of the 1970’s, the state of Louisiana introduced a law that separated medical malpractice claims into two different groups: claims against private healthcare providers, and claims against public or state healthcare providers. The Louisiana Medical Malpractice Act (LMMA) was able to place a cap of $500,000 on non-economic damages. However, in 2006, the 3rd Circuit Court of Appeals ruled that the Medical Malpractice Act’s cap was unconstitutional because it did not guarantee adequate remedy to the claimant. When the ruling was appealed to the Louisiana Supreme Court, they remanded the ruling back to the inferior court because the issue was never properly argued.

Propositions for the cap to increase its limits to $750,000 have been written and presented to the Louisiana legislature. Such bills would call for increasing the primary insurance limits and expanding the responsibility of the patient-compensation fund.

Patient Compensation Fund

Louisiana is one of only a few states in the country that has a patient compensation fund. Patient compensation funds are pools of money established by the state and created by doctors’ surcharge payments to provide additional monetary support to pay claims in excess of insurance limits. Although state healthcare providers are automatically covered, private providers may choose to opt out of the fund if less expensive coverage can be found.

For medical malpractice insurance companies that provide the first $100,000/$300,000 limits, the PCF supplies an additional $400,000 per claim, plus unlimited future medical expenses up to the $500,000 cap.

Major Carriers

• Louisiana Medical Mutual Insurance Company (LAMMICO)
• Metro
• ProAssurance Company, Inc.
• Medical Protective Insurance Company