An alarming statistic has just been released: medical malpractice insurance companies’ average profits are higher than 99 percent of Fortune 500 companies. This seems to dispute the recent claims that medical malpractice lawsuits are one of the big cost drivers in health care. It is now clear that the biggest cost driver of health care is the astronomical profit of malpractice insurers. Medical errors also account for a large part of the problem. The average profit of medical malpractice insurance companies is higher than 99 percent of all Fortune 500 companies and 35 times higher than the Fortune 500 average for the same time period. Malpractice insurers have seen their profit margins range from 5.9 percent to a high of 74.8 percent. The recent report also finds that malpractice insurers have publicly overestimated their losses and underestimated their profits in order to have a better argument for tort reform. In reality, medical insurers are making millions at the expense of medically injured patients.
To read the American Association for Justice’s response to these alarming facts, please click here.
To read more about medical malpractice insurance companies, please click here.