Medical 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 the lawyers' "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.

I think you have it wrong, Mr. Smarr. I think the Republicans talk of "tort reform" is meant to distract from the fact that your insurance buddies are ripping off the American people. That's what I think.

"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? And the 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 and Democrats. Now the insurers are trying to take advantage of the clouded issue by further gouging doctors/consumers, knowing that the Republicans will blame Democrats and lawyers.
Of course the Republicans are going to do that. Are the American people going to learn the truth?

[napi21]

1. So it WAS the insurance companies!

There have been a lot of people saying this all along. Some said because the stock market had dropped, the insurers decided their only way to keep profits up was to get their income from premiums.

Why has it taken this long to discover this? Can this information get enough public coverage that this whole subject be finally resolved?

I wonder.

[wakeme2008]

2. there was a report like this from Texas

of all places.... the insurance companies do not want nothing but profits. No loses.

[pk_du]

3. The lovely Mrs edwards spoke eloquently about this during

the campaign.....the rates went up dramatically because the Insurance Cos lost billions in Investments in the market crashes of the early 2000s...had to cover their medium-long term exposure - so jacked up rates to cover them short term....bastards...didnt open their mouths of course when Rove & Co spouted "medical liability reform" from the rooftops!

[havocmom]

4. It's not law suits, it's poor stock market preformance

They take the premium $$ and invest it. When the market does well consistantly, rates do not rise real fast. When the market flouders, they charge clients more to make up the difference.