A national organization in the United States that researches and reports on tort issues and seeks to protect the rights of people who are injured as a result of the negligence of others issued a report in 2009 regarding medical malpractice insurance companies that found the following:
Caps on noneconomic damages do not have any effect on the medical malpractice insurance premiums charged doctors. (In 2009, the average medical malpractice insurance premium was 1.8 times what it had been in 2001, both in states with caps and in states without caps.)
Medical malpractice companies in all states in the United States have experienced increased profits. Medical malpractice companies in states that have caps (limits) on the amount that medical malpractice victims can recover experienced increasing profits at an even higher rate (24% higher) than the medical malpractice companies in states without caps (if medical malpractice insurance companies pay out less, they keep more profits). And the rate at which profits are increasing is greater in states with caps than states without caps.
The states with caps on noneconomic damages do not have lower medical malpractice insurance premiums or health insurance premiums than the states without caps. (The health insurance premiums charged employees enrolled in single coverage have increased at about the same rate in states with caps and as in states without caps.)
Medical malpractice insurance companies had experienced a 47% increase in profits in the previous ten-year period.
In 2008, medical malpractice insurance companies in states without caps received about twice as much as they paid out. Medical malpractice insurance companies in states with caps received 3.5 times what they paid out.
In 2008, the average profit of the top 10 medical malpractice insurance companies was greater than 99% of the Fortune 500 companies and 35 times greater than the average of the Fortune 500.
In 2007, medical malpractice insurance companies’ profits based solely on the medical malpractice insurance premiums they received was 25% of their total profits (that figure rose to 45% in states with caps). The rest of the property and casualty insurance industry reported that insurance premiums that they received represented 11% of their profits. Medical malpractice insurance companies earn much more of their profits from the premiums they receive than other insurance companies.
Medical malpractice insurance companies pay out about 55% of their revenue in paying claims (compared to 98% for Medicare and 87% (at best) for health insurance companies). The 45% that stays with the medical malpractice insurance companies is not being used to reduce the medical malpractice insurance premiums charged to their insured doctors.
The medical malpractice insurance industry has championed tort reform because “reforms” lead to massive profits for the insurance companies because they are not willing or required to reduce medical malpractice premiums charged to their insured doctors.
If you are the victim of a doctor’s medical malpractice or the medical negligence of another medical provider (such as a hospital or nursing home) in any state in the United States, visit our website or call us toll free 800-295-3959 to be connected with medical malpractice lawyers in your local area who may be able to assist you with your medical malpractice claim.
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