Reply #4: most claims reflect risk of procedure-but you are correct re self-policing [View All]

[papau]

does not not work well

Despite this, paying full boat via law suit judgement when things go badly results in a tail or extra cost to the premium (for an individual's health care) of 3 to 5 %.

However - in pricing the companies now try to get the actuary to price for a much larger tail - so that it comes back as more profit!

Indeed in pricing the premium the doctor pays - a silly huge "what if" tail is assumed and med malpractice becomes one hell of a profit maker. Now you find Ins companies exiting the business for capital usuage reasons, and/or if the reins deal they have is screwing them, they can actually lose money on med malpractice.

Cherry picking between types of doctor has caused some premiums to shoot so high it is silly - if you do the latest and best you have the highest risk patient coming to you - and indeed you lose more than the average because of this. So they charge you huge because every loss has a lawsuit potential.

In Germany you can not even sue for this stuff - but the state takes care of those who are harmed. Germany does feel it is right to punish those MD's who are going out on a limb and trying the latest and greatest to save you.