New Report Shows that State Tort Reforms Don’t Lower Premiums for Doctors or Patients

An analysis of data from the National Association of Insurance Commissioners (NAIC) and company annual statements shows malpractice insurer profits are 24 percent higher in states with caps. In the cap states, insurers took in 3.5 times more in premiums than they paid out in 2008. However, insurers in states without caps took in just over twice what they paid in claims. The findings show that there is no correlation between the cost of medical malpractice premiums and health insurance premiums. The American Association for Justice President Anthony Tarricone, stated that the data shows that tort reform is just another insurance company handout. While 98,000 people die each year from preventable medical errors, it makes no sense to limit patients’ rights to fill insurance company coffers.

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