Malpractice insurance rates skyrocket - now we know why

[Lefty48197]

http://www.detnews.com/2005/business/0507/08/D01-241291.htm

For years we've listened to right wingers rant about "trial lawyers" and the skyrocketing cost of medical malpractice insurance that their "frivolous lawsuits" cause. The conservatives have tried to whip up a frenzied mob that will help them put the "trial lawyers" out of business once and for all. (The fact that lawyers contribute so much money to the Democrats probably has something to do with it too)
Through legislation, the Republicans have tried to thwart malpractice claims. They've tried to cap awards. They've tried to shift the jurisdiction to federal courts where they've been more effective at controlling the courts. THey've tried to do the same things for product liability. They've worked to protect the tobacco industry from liability. They've worked to protect the gun industry, and big business in general, from liability.
The Republicans have told us that "trial lawyers" are ruining our health care system. "They're driving up the costs for consumers", the Republicans have cried. "They're bankrupting honest doctors"...
Unfortunately, for the Republicans, a new study tells just what is going on with medical malpractice insurance rates.


"The new study from New York-based Center for Justice & Democracy found that major malpractice insurers collected more than twice as much in premiums between 2000 and 2004, while the money they paid in claims rose less than 6 percent. The group contends the difference has allowed the nation's leading insurers to increase their surpluses by more than a third in just a few years."


Let's see.... insurance premiums up 100%, while claims payouts are only up 6%??? "Damn those trial lawyers", say the Republicans."Business as usual for insurance companies", say the Democrats.
Jay Angoff, former state insurance commissioner for the state of Missouri put it best: "Their losses are going down, and their premiums are going up. It's a great business to be in".
Linda Watters, financial and insurance services commissioner for the state of Michigan added, "If these carriers truly have loss ratios that are this low, and yet they are still increasing rates, one has to wonder if they're gouging."
"All this does is distract from tort reform", chimed in Lawrence Smarr, President of the Physicians Insurers Association of America, an insurance industry trade group.

"simply taking the overall claims and payouts doesn't figure in factors such as legal costs of malpractice cases or investment income that been lost by insurance companies", added Smarr.
So now they're losing money, because they have to pay out claims, and they aren't making a profit by investing that money instead? Their rates have to go up at fifteen times the rate of claims to make up for that "lost income"? C'mon, get real. It's the insurance industry that has been gouging doctors over insurance rates, and the Republicans have blamed lawyers. Now the insurers are trying to take advantage of the clouded issue to further gouge doctors/consumers, knowing that the Republicans will blame Democrats and lawyers. The real question is: Are the American people going to learn the truth?

[dogday]

1. The ones who are responsible for the high premiums

are the same ones who benefit from them. Just like in the oil business.

[ohio_liberal]

2. Yep

I personally know an orthopedic surgeon who retired early because his specialty is considered high risk by insurance companies (meaning that orthopedes supposedly get sued a lot) and his insurance more than doubled. Of course he hadn't been sued in years but that doesn't seem to matter. WV lost a ton of doctors in the last few years because of the high cost of insurance.

[chicagomd]

5. There is no

method to the madness when it comes to malpractice premiums. I noted in another thread that I have a friend who practices in a Pediatric subspeciality who saw his insurance go from $20k to $40k in one year. He has never been sued. Ever.

[progressivebydesign]

3. Let's not expect this info to be on any front pages nationwide.

Cuz the republicans have to keep their talking points. I am SO tempted to send this to my republican in-laws, who complain about those things, but their minds are closed up tight.

[leesa]

6. Tempted? Do it. How else will they ever get an idea that they are being

fed BS? They will disagree, of course, but it may plant a seed.

[chicagomd]

4. link to another discussion

Talked about this in a previous thread from the position of a physician if anyone is interested:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=104&topic_id=4056297&mesg_id=4056297

The fact is that healthcare costs, including malpractice which directly effects doctors and hospitals bottom line, are on the rise due to a variety of complex factors of including lawsuits. Republicans say it is the trial lawyers, trial lawyers (Democrats) say it is the insurance industry, and the blame keeps getting passed around while doctors that practice in high-risk fields cross borders to reduce their premiums.

Physicians are "on-board" with caps for a variety of different reasons, but mostly because for years it was the only thing being offered as a solution to a problem that has been brewing in this country for a decade.

Like so many other important issues in this country, we have come down to an "us and them" mentality and everyone is so concerned about protecting their own interests that nothing gets done.