By Amos Budde, NCL Public Policy Intern Americans for Insurance Reform, a coalition made up of Consumer Federation of America, ConsumerWatchdog.org and nearly 100 other public interest organizations, released a major study Wednesday on the state of the medical malpractice insurance industry. It found that insurance rates for doctors have dropped significantly while the medical malpractice insurers are earning record profits. The conclusion is that the cost of medical malpractice insurance is not crippling doctors and that large profits are going to the insurance industry. Specifically, the study found, adjusting for inflation, that:
- Medical malpractice premiums are nearly the lowest they have been in 30 years.
- Medical malpractice claims are down 45 percent since 2000.
- Medical malpractice insurer profits are higher than the rest of the property casualty industry, which has been very profitable over the last five years.
- In states that have substantially limited consumers’ ability to go to court for medical malpractice, the insurance premiums for doctors are basically the same as in other states.