Medmal Study Shows Decline in Losses after Caps

Milliman (an actuarial consulting firm that has been known to hire economists) has examined the proposed non-economic damages cap for Wyoming's proposed damage cap.  The analysis which is not based on an econometric model, but a simulation model which suggests that the cap will reduce losses and loss adjustment expenses by about 15%. If the typical doctor pays $100K in Wyoming, then that is a significant savings if translated in to a (say) 10-15% premium reduction.  It appears that two of the three med mal writers in Wyoming are mutuals thus, premium should fall correspondingly.