High medical malpractice premiums in New York can be linked directly to the state's large malpractice litigation awards, according to a new study by the Manhattan Institute's Center for Legal Policy.

Based on a statistical analysis of malpractice premiums and lawsuit awards throughout the nation, the study debunks the argument that high malpractice costs are a result of cyclical insurance-industry trends and price gouging. The findings provide added evidence for the need of malpractice-lawsuit reforms, such as a proposed $250,000 cap on non-economic damages that has been introduced in both houses of the Legislature (A.5674/S.3035, S.4191).

"For the price-gouging hypothesis to make sense, insurance industries must be exercising monopoly power," the study says. "We find that states with more concentrated insurance industries actually have lower premiums."

A copy of the full study can be found here: