In November, Americans for Insurance Reform (AIR), a coalition of nearly 100 consumer interest groups, released the results of two studies they conducted based on new insurance data. The studies reveal that contrary to Speaker Paul Ryan’s claims, states that allow caps on damages and other tort reform measures actually have higher doctor’s rates. These same studies also show that premiums and claims for doctors are at their lowest levels in 40 years.
Tort reform supporters frequently claim that medical malpractice insurance rate hikes are directly linked to increases in malpractice payouts. AIR found that rising rates were tied to the economy and the financial losses of the insurance industry, relating to their investments in the stock and bond markets. In years where the stock market was strong, insurance companies lowered premiums in an effort to attract customers and quickly invest the profit made from their premiums.
Based on these findings, AIR concludes that insurance companies are allowing tort reform supporters to believe that taking away the right to fair compensation for those injured by negligence will reduce insurance rates. According to AIR, ‘Lawmakers should focus instead on controlling the power and the abuses of the insurance industry.’
To view the study results, please click here.