CARSON CITY, Nev. (AP) -- Nevada lawmakers weighing two medical malpractice insurance reform plans were told Tuesday by insurers and regulators that some rate regulation is needed -- but too much could boost doctors' costs.
SB122 and SB250 give the state insurance commissioner new powers to directly and indirectly control malpractice premium rates, which some Nevada doctors say remain unaffordable.
Bill Montei, president of PIC Wisconsin, a malpractice insurance company, opposed most of both measures. He told the Senate Commerce and Labor Committee that last year's malpractice lawsuit reforms will eventually stabilize premiums charged by his company and other insurers.
"I'm looking for the right balance of rate regulation," Montei said during a four-hour hearing on the insurance reform bills and insurance rate pricing procedures. "This isn't it."
The bill sponsors, Sens. Dina Titus, D-Las Vegas, and Randolph Townsend, R-Reno, said their measures needed revisions. But both senators called for some type of reform to guard against future rate spikes.
"The goal is to have the best medicine, the greatest access to that medicine that we can possibly find," Townsend said.
Gov. Kenny Guinn declared a malpractice insurance crisis last year shortly after St. Paul Companies pulled out of the market. The big insurer had covered about 35 percent of the state's doctors.
St. Paul said frivolous lawsuits and large jury awards drove it out. Critics say the company's bad investments and risky lowball pricing made it unable to ride out an economic downturn and several malpractice claims.
Bill Bradley of the Nevada Trial Lawyers Association said Tuesday that St. Paul's withdrawal rippled into other companies that then raised their rates.
"The leader sometimes flies right into the ground, and the rest of the team goes right with him," Bradley said.
Townsend questioned the company's pricing scheme, which state Insurance Commissioner Alice Molasky-Arman said resulted in several discounts for most doctors and premiums averaging 35 percent below its normal rates.
"We're giving away the world," Townsend said. "Costs are going this way and our premiums are going this way," he said, waving his arms up and then down.
His SB250 would allow the insurance commissioner to nullify a previously set rate and require doctors to disclose all past malpractice claims against them before being licensed in Nevada.
It would also levy a penalty against insurers that "clog courts" by refusing to settle claims if the covered doctor wanted to settle and was found liable for malpractice, Townsend said.
Titus' SB122 would give the insurance commissioner the chance to set up obstacles to insurers like St. Paul leaving the market.
Molasky-Arman says that measure would add too much workload for her division and hasn't supported it.
Doctors are backing a separate lawsuit reform bill, SB97, that would tighten jury award caps and limit lawyer fees. That measure is being heard in Senate Judiciary.
The commerce panel will continue discussion of both insurance reform measures on Friday.