MINNEAPOLIS, February 1, 2008—A new analysis of independent research summarized by the American Medical Association (AMA) shows that caps on noneconomic damages lower medical liability premiums.

The AMA’s  “The Impact of Liability Pressure and Caps on Damages on the Healthcare Market,” summarizes recent research on the impact of medical liability reforms, showing that caps on noneconomic damages are associated with lower premium levels of at least 17 percent, depending on the specialty.

Research also shows that placing a quarter-million dollar cap on non-economic damages in states that don’t have effective reforms could result in premium savings of $1.4 billion nationwide.