Commentary: Steve Roberts

Legal Reforms Begin To Bear Fruit In W.Va. Economic Climate

The Charleston Gazette, October 10, 2005

FOR too long the news coming out of West Virginia was not so great. However, a turnaround seems to be in the making thanks to several recent developments.

The turnaround I am referring to is that West Virginia ’s leaders have taken important, much needed steps over the past several years that are starting to pay dividends for our citizens.

The first good news involves a much-improved legal climate for our doctors where they can practice medicine without the constant fear of frivolous lawsuit attacks or ever-escalating medical malpractice premiums.

Recent news stories showcase just how much our state’s environment has improved since the enactment of comprehensive medical malpractice reforms back in 2002. According to David Rader, an insurance expert and head of the West Virginia Physicians Mutual Insurance Company, “we’re seeing the frequency and severity of [malpractice] suits going down. I think that speaks well for the direction West Virginia is heading.”

The story, which appeared in an Aug. 20 state newspaper, declared “ West Virginia is shedding its nefarious reputation as a ‘judicial hellhole’ in terms of malpractice suits and is beginning to attract doctors.”

Other reports indicate that doctors are returning to practice in the Mountain State . All of this is evidence that the West Virginia Legislature’s action to enact medical-malpractice reform is a resounding success.

The second bit of good news involves legal reforms made to improve the state’s insurance situation. Earlier this year Governor Manchin and the Legislature enacted much-needed legal reforms to help end the state’s insurance crisis.

The positive result, as reported October 4, is that insurance rates are coming down thanks to the recent legislative actions. The state’s Insurance Commissioner told lawmakers that auto insurers have asked for $63 million in rate decreases and homeowner insurers have requested another $3 million in reductions. Generally, rate relief is taking place when a policy is renewed.

Commissioner Jane Cline credits the rate reductions to the Legislature’s elimination of third-party bad faith lawsuits, not to the improving insurance market nationwide.

The other benefit from this is that insurance carriers have resumed writing homeowners policies and commercial insurance policies, which will help to expand insurance options and keep rates more competitive.

The success of these legislative acts sets a precedent that our state needs to follow. They show that when leadership is provided and decisive action is taken to correct problems in our state, the benefits are substantial and real for our citizenry.

Now, we must continue to work on other pressing needs, such as restructuring our business tax rates, finding ways to lower workers’ compensation costs, expanding access to affordable health care and insurance, making additional reforms to our legal system and improving the outcomes from our education system.

Let’s take a lesson from all of this. What worked in solving these problems has helped all of us. Now is the time to continue the reform efforts and provide additional benefits and opportunities for all West Virginians .

Steve Roberts is president of the West Virginia Chamber of Commerce.