Medical Malpractice Insurance Premiums Not Influenced by Patient Lawsuits
A recent comprehensive study by a leading insurance industry analyst reveals that medical malpractice insurance premiums are not influenced by patient lawsuits. The June 2005 report by Jay Angoff concludes, among other things, that "over the last five years the amount the major medical malpractice insurers have collected in premiums has more than doubled, while their claims payouts have remained essentially flat."
As Angoff's report details, the 15 major medical malpractice insurers increased their premiums by 120% even though their net payouts on claims increased by less than 6%. This amounts to a stunning increase in premiums at a rate 21 times the increase in payouts.
As with all other credible independent studies, this report confirms our belief that insurance companies are falsely raising the spectre of lawsuit abuse to exploit consumers and reap unconscionable profits.
To read the complete study, please click here.