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New Study released: “No Basis for High Insurance Rates”

The American Association of Justice recently published a report entitled, “No Basis for High Insurance Rates”. The report illustrates the ways insurers are gouging doctors, padding their pockets with excessive premiums, and driving up the cost of health care. The alarmingly high medical malpractice insurance rates are the results of insurance companies’ policies. Insurance reform is what is needed to ameliorate rates and lower the cost of health care without infringing on victim’s rights.Publication2.jpgThe study cites the 2006 financial statements recently filed by medical malpractice insurers. The statements reveal that while the amount they paid out in claims has declined, their surplus is at an all time high. One example of an inconsistency in the claims of insurance companies is paid losses vs. written premiums. The net paid claims and losses have decreased substantially in the last few years even though these carriers have raised their rates considerably. This is only one example of the discrepancies in the reasoning of insurance companies regarding rising rates. This is a further illustration of the ways insurance companies cause harm to doctors and victims, and blame medical malpractice lawsuits in order to cash in.To view the full study, click here