Rising doctors' premiums not due to lawsuit awards (Dartmouth Study)

[joeunderdog]

Study suggests insurers raise rates to make up for investment declines

Re-igniting the medical malpractice overhaul debate, a new study by Dartmouth College researchers suggests that huge jury awards and financial settlements for injured patients have not caused the explosive increase in doctors' insurance premiums.

The Dartmouth economists studied actual payments made to patients between 1991 and 2003, the results of which were published yesterday in the journal Health Affairs. Some previous studies have examined jury awards, which often are reduced after trial to comply with doctors' insurance coverage maximums or because the plaintiff settles for less money to avoid an appeal. Researchers found that payments grew an average of 4 percent annually during the years covered by the study, or 52 percent overall since 1991, but only 1.6 percent a year since 2000. The increases are roughly equivalent to the overall rise in healthcare costs, said Amitabh Chandra, lead author and an assistant professor of economics at the New Hampshire college.

''One of the things we know about medical malpractice payments is that they're usually made when an injury occurred," he said. ''The injury has to be treated. And if it's more and more expensive to treat injuries, then that will be reflected in payments."

Meanwhile, malpractice insurance premiums for internists, general surgeons, and obstetricians have skyrocketed since 2000, jumping 20 to 25 percent in 2002 alone. In Massachusetts, ProMutual Group, which covers about one-third of the state's doctors, raised rates an average of 11 percent last year, 20 percent in 2003, and 12.5 percent in 2002. Some specialists, such as obstetricians, now pay almost $100,000 annually for their malpractice insurance. ProMutual executives said they will not raise premiums this July, primarily because increases in the number of claims have slowed.

more...
http://www.boston.com/business/globe/articles/2005/06/01/rising_doctors_premiums_not_due_to_lawsuit_awards/

[spotbird]

1. What does the truth have to do with it? nt

[proud2BlibKansan]

2. I pounded this message during the election campaign last fall

and isn't it interesting that the right seems to not be talking about it anymore? or the evil trial lawyers?

[AuntiBush]

5. Yeah. They too have family tragedies & will be facing the same

financial problems, too - fools they are and will awaken soon when that Bankruptcy bill hits, along w/so much more future trickled-down Bush crap!

Then they'll want one of those "evil trial lawyers" to come to their aide.

[JRob]

9. how funny would it be if they wouldn't represent them... nt

[AuntiBush]

11. Honestly! Talk about pure unadulted "Rhetoric!"

[AuntiBush]

18. I'm at the point where "to hell with their feelings!"

When they're so "me," "me," "me..." Yeah, it's all about them. Not our troops, much less their one-time fellow Americans.

What was that magazine add after Nov 2004: How could 59+ million Americans be so stupid?

Europe: We're still questioning that one ourselves.

Thanks JRob. You called that one on the dime; about all we'll have left if * stays on the thrown.

[AuntiBush]

3. Insurance Companies are some of the RICHEST Corps in America!

I know, first-hand! Sadly, I know... trust me on this one. It's the biggest propaganda crap passed around throughout our country for years now.

Everyone blames a "lawyer," but I know plenty (a lot) that really are working behind the scenes for the "left" and have every right to be anti-tort. Maryland's been fighting tort-reform for the last several years. Under Gov. Ehrlich (another henchman for Bush & Co) he and the Repuks in Annapolis made sure to put pain and suffering under so many caps - all to protect filthy rich multi-billion dollar corporations. Many extremely irresponsibly responsible for many tragic, un-deserved laborers deaths.

These same men and women at a certain big Steel Corp. though went defunct last year are still worth 10's of billions of dollars. Over 35,000 + people lost everything, including pensions after their families worked (many) their entire lives at this certain place.

The irony of it all: Bechtel was involved (asbestos). Seen plenty die and know of many widows.

Again, INSURANCE corporations are some of the RICHEST $$$ profitable firms in America. Don't buy those lies of "frivilous" lawsuits.

Now, if someone reads this, connect the tots to "Ultra-Neo-Conservative-Republican Judges!"

Amazing how far Bush & Co's evil arms have reached out into so many small bedroom communities.

[joeunderdog]

20. They own the malls.

Medical malpractice is extremely hard and expensive to prove. Most legit cases get screened out unless the surgeon cut off the wrong leg or something. Even the top lawyers won't try it unless the case is overwelming.

You won't see the insurance companies promise a reduction in Malpractice Insurance premiums by the vast amounts they claim these runaway awards are costing them. Same with car insurance. They get sweetheart deals and the premiums just keep rising...

[lovuian]

4. Yep Insurance companies are the biggest Scams around!!!

Incredible!!!

[JRob]

7. certainly part of the axis of evil... nt

[AuntiBush]

12. Just thinking of all the LIES/RUMORS started a few decades ago!

I remember back during the Reagan years - the rumors began on the streets:

1. Psst... have you heard? Social Security might not be there for us.
Amazing... they knew back then Bush would be taking it out willfully and 9/11 might happen...

2. Psst... All lawyers are evil!
Till ya need one! Then, they're you're best buds. You're life-savers.

3. Psst... Insurance companies are suffering "because" of all those "Frivolous" lawsuits.
Ah-ha... it's the American people's fault and the lawyers they prey upon them...

IRONY: Almost all congressional members and many past Presidents from way back when started out as "LAWYERS!" They needed to know and understand the law, ya know.

[JRob]

6. We've known this... it's what they used to demonize Edwards

We knew the number was 3% or something stupid like that.

[baby_bear]

8. Likewise, most people's health ins. rates have risen similarly

Why isn't there more talk about reigning these guys in instead of blaming other factors? Same reason we don't control Rx costs, no doubt.

And of course it's all the trial lawyers' fault.

Hello state and federal government representatives...are you paying attention to anything but what lines your pockets?

b_b

[JRob]

10. Answer: "The "NEWS" has been canceled..."

Among my favorite Randi Rhodeisms

[AuntiBush]

13. You got it! The "quote" of the year, thanks to Randi Rhondes!

[MisterP]

14. they themselves admitted as much: insurance costs actually ROSE

after Tex. crushed torts

[MAlibdem]

15. Damn, too bad Chandra is going to Harvard next year

I wanted to take Econometrics with him.

[Eloriel]

16. We've known that for quite a while -- it's not malpractice suits

driving up premium costs, it's the greed of the ins. companies. The data has been there all along. However, yet another set of data is great.

[alfredo]

17. this is something to copy to your drive so you can dope slap

some freeper whining about malpractice insurance.

[ngGale]

19. It's all about greed and they try to blame...

trial attorneys. We've known this since the last campaign, maybe somebody will listen this time.

[speedingbullet]

21. Blame the Lawyers (until you need one)

A law professor presented similar studies to a Law and Medicine class that I took over 20 years ago (yikes). He also gave history that every major tort reform movement coincided with a down stock market. The insurance companies invest in the stock market, their reserves fall, not enough to pay the claims...

[northzax]

24. right. Insurance is an investment game

in the late 90's, insurance companies, like everyone else in the market, were making a killing on investments, so premiums didn't rise as much. in the past five years, premiums go up as investment income goes down.

simple economics. the company needs to bring in X number of dollars every year to show a profit and have the resources to cover expenses and possible claims. There are two sources of income, Premiums (P) and Investments (I) P+I=X. As I goes up, P is less important, as I goes down, P becomes more important.

not that tough, you know?

[gratuitous]

22. Shocking!

Who would have ever guessed that the Republicans would play politics with people's lives? I . . . I believe I shall faint. Eustis, get me my smellin' salts!

[fasttense]

23. Why does everyone blame the rise in cost of medical service

on everything except doctors? I have several relatives who are doctors. My brother-in-law (a doctor) just bought a huge deprivation chamber because they had $20,000 they didn't know what to do with. They own a beautiful house, they drive huge expensive cars. They have a maid and a nanny. They couldn't think of anything else to spend their money on.

I don't believe all doctors are overcharging, it's just that $134 for a doctor's visit in rural TN is too outrageous. Maybe the damn doctors should take ownership of their problems.

[NNguyenMD]

37. Wow, when I lived in Memphis for a summer I was told by a colleague that

health professionals in the south can make a killing because the demand is just so high out there. I was a summer research intern at St. Jude Children's Hospital at the time, he told me he knew of Chriopractors making in the millions and Pharmacists making hundreds of thousands of dollars practicing in the south. So it doesn't really surprise me too much that your brother-in-law is that prosperous.

On the flip side of that coin, I know a physician who practices in Hollywood who lives in a one bedroom apartment in North Hollywood, drives a modest nissan, and does not come to work in a suit and tie. Maybe he's just a frugal guy, but he is also an ardent Bush supporter too. Hope he sees the light some day when he realizes how much he and his patients are getting screwed.

[lonestarnot]

25. You have the gall to post unmitigated truth?

:sarcasm:

[WeRQ4U]

26. This topic always bugs the shit out of me.

Believe me, I'm biased here, but the whole argument makes no sense. We have a group of people, upset with the rise in medical costs. They link that rise to the increase in Medical Malpractice insurance the doctors must pay. However, we KNOW that premiums rise and fall regardless of the lawsuits filed against the insurance company. So this group of people, instead of targeting those in a position to reduce premiums, target trial lawyers?

First, there aren't many "Frivilous" lawsuits. The rules, and financial structure for attorneys prevent them from happening already. Attorneys will not take on a "frivolous" case because they will not get paid or will be sanctioned by the bar. It's not in their best interests to do so. And believe me, this garbage about bringing junk suits to bully the insurance company into settling is bullshit. They have attorneys on staff that can handle the work load. A "frivolous" suit filed and reviewed by one of their attorneys will be noted as such and blated in brief. They just don't happen.

Second, some doctors NEED to be sued. When an individual pays THAT much money for a doctor to do something, and that doctor messes it up, often times quite horrifically, the injured party HAS to be compensated.

But these morons, convinced its the fault of the legal community, would rather shield the doctors and insurance companies from financial harm, than go after the real problem. And we all know what the outcome will be: Insurance companies continue to make huge profits, and premiums will continue to rise (since our market is quite volatile right now), we'll still have incompetent doctors practicing without any check on their screw ups, and we'll have injured individuals with no recourse other than paying MORE money to have the same procedure corrected.

Then top that off with the fact that they will be burdened by increasing medical debt, with no way of digging themselves out of it, due to the new anti-bankruptcy bill. IT's criminal.

[lastliberalintexas]

32. Amen to that- "Second, some doctors NEED to be sued."

A pediatrician here in Texas has in the past 2 years had FOUR dead baby cases against him/her. FOUR! That I know of anyway.

And yet, for some strange reason, the Board of Medical Examiners has yet to yank that doctor's license. It wouldn't be because the doctors refuse to actually act as the self-policing profession they are supposed to be, would it? Circling the wagons indeed. :eyes:

[Deja Q]

27. greedy filth. May the crash hurry up; these unchristian bastards will be

in the same boat as the rest of us.

I've enough dealing with those fuckers to initiate a lawsuit of my own. Pity I can't afford a lawyer but if I hadn't kept pressing the issue, what was denounced as "stress" would have left me paralyzed or dead.

Fuckers.

[Lydia Leftcoast]

28. Last night I was talking to my brother, who's a doctor in private practice

He has had increasing instances of insurance companies denying payment for lame reasons, especially when the patient has two possible sources of payment (say, Workers' Comp and health insurance, or a case where two spouses are each required to take family coverage). Each potential payer will claim that it's the other payer's responsibility.

He has ended up totally stiffed or paid in the wrong (cheaper) category or forced to appeal a decision so many times that in spite of having all the patients he can handle, he's barely making enough to cover the expenses of maintaining his office. For one thing, he has to pay a billing service to bill the insurance companies, (they charge a monthly fee plus a certain amount for each bill) the alternative being hiring another full-time person in addition to the receptionist/bookkeeper.

I seriously suggested that since he doesn't perform surgery or do anything else that's very expensive, he could make more money by not accepting any insurance at all and taking only Visa and Mastercard. He could then drop the billing service, lose that expense, and actually get paid dependably and on time.

We were able to commiserate as I told him about my monthly individual insurance premiums going up $90 a month because of reaching a milestone birthday, even though I never meet my deductible. In other words, I'm scheduled to give the insurance company an extra $1080 per year for NOTHING.

So the patients are getting screwed, the doctors are getting screwed, employers are getting screwed if they try to provide health care for their employees, and the only ones who are happy are the leeches in the insurance companies.

[WeRQ4U]

29. EXACTLY!!

BY the way, Lawyers have rising malpractice insurance costs too. Who's fault is that?... Lawyers?

[lastliberalintexas]

33. The doctors have been willing tools

I hate to say it, but there it is. Perry vetoed fast pay legislation that both Dems and a few republicans in our Lege supported because he was in the pocket of insurance. Did the doctors retaliate by supporting another candidate? Of course not- they willingly joined Perry and the insurance industry's crusade against trial lawyers.

And now I keep hearing doctors complaining about their still increasing premiums for less coverage than before, the insurers continuing to slash the "allowable" charge for services, and that the insurers are still taking 6-12 months to pay them for their services, if ever. Waaa. I have absolutely no sympathy for the idiots who were played like so many other Bush voters. Just like the others, they are getting what they voted for- they were just too blind/stupid to see it.

[Lydia Leftcoast]

34. BTW, my brother is not a Bush voter and never has been

Just so you know.

He went into private practice after bad experiences with group practices that did "assembly line medicine" and charged a premium for it. He was actually kicked out of one practice because he didn't refer enough patients for surgery and was able to help them by non-surgical means.

So, yes, there are plenty of greedheads in the medical field, but it's not 100% by any means.

[lastliberalintexas]

35. I'm sorry- I should have said by and large!

Or the majority or some other limiting language. I usually try to be so careful not to condemn an entire group for the actions of a few, or even the actions of the majority. Doctors and med mal issues shoot my blood pressure thru the roof, hence my slip!

I also know a couple of doctors who have very vocally opposed the tort reform measures, the republicanization of their profession and even the villainization of universal healthcare. You are very correct- there are some outstanding doctors out there who really do still care about their patients. It's just as sad to them that their profession has been hijacked as a tool of the right wingers as it is to us, and I should't have unfairly condemned them. :)

[Lydia Leftcoast]

36. Apology accepted!

:hi:

I know that SOME doctors are in it only for the money.

[Straight Shooter]

30. This is such a no-brainer conclusion. We didn't need Dartmouth.

Anyone who has paid attention knows this. People in industries who are actually affected by these rates and are privy to what's going on behind the scenes, they know this also.

Apparently the only people who don't know this are people who are simply unwilling to accept reality. Maybe they'll take a closer look when companies are no longer allowed to take tax deductions for contributing to healthcare insurance for their employees. This is another item on the bush administration agenda, and it will backfire mightily.

One more thing: The term "frivolous lawsuits" is a sound bite with very little basis in fact. Most so-called frivolous lawsuits are settled at the early stage and are actually called "nuisance lawsuits." By the time it gets to a jury, it most certainly is not a frivolous lawsuit. (Unless it's somebody with big bucks trying to score points, and that is very rare.)

[Ilsa]

31. NO! Say it isn't so!

We passed our award caps in texas in 2003, I think. Hasn't made any difference in insurance or medical costs, from what I've heard. Maybe a few unnecessary tests are not being run, but apparently it isn't adding up to much.

Thanks for the post and link.