Insurance companies, claiming that the measure would have only minimal effect on insurance prices for doctors, got their wish as Maryland Gov. Robert Ehrlich (R) vetoed a reform bill passed earlier this month by lawmakers. But then Democrats in the legislature overrode that veto. The American Insurance Association had urged Ehrlich to veto HB 2, which includes various changes to the civil liability system for medical malpractice cases, but few that are significant or likely to produce meaningful cost savings. In addition to minor civil liability reforms, the new law includes a fund to help doctors pay their premiums and resurrects the concept of a “people’s counsel,” which would apply not only to medical malpractice insurers but also to homeowners’ insurers. Ehrlich had criticized the bill for not having enough insurance reform measures but it was a tax measure–repealing an exemption for HMOs from the state’s 2 percent insurance premium tax–that ensured that Ehrlich would reject the bill.
Topics Legislation Maryland
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