State tort reforms have led to record profits for insurance companies while physician and patient premiums continue to go through the roof, according to a new report released by the American Association for Justice (AAJ).
AJ researchers analyzed data from the National Association of Insurance Commissioners (NAIC), as well as insurance company annual statements, and determined that malpractice insurer profits are 24 percent higher in states with caps on medical malpractice awards. The data also show that states with caps took in 3.5 times more in premiums than they paid out in 2008 as compared to just over two times in states without caps.
The report shows that profitability for the medical malpractice insurance industry has increased 47 percent in the last 10 years. This came on the heels of an aggressive push by the insurance industry to enact tort reform because of “reported” losses.
For instance, the average profit of the 10 largest medical malpractice insurers was higher than 99 percent of Fortune 500 companies and 35 times higher than the Fortune 500 average.
The report’s authors also believe the insurance industry leaders are already preparing to claim another “tort crisis” and lobby for even greater restrictions on patients’ rights by 2012.
To view a copy of the report, please visit www.justice.org. If you are worried about how these reform changes will affect you and your family, use the information posted on this website to protect yourself or call and speak to one of our medical malpractice lawyers.