Physician Malpractice Insurance Rates How Many Believe Tort Reform And Competition Will Lower Health Insurance Premiums?

How many believe tort reform and competition will lower health insurance premiums? - physician malpractice insurance rates

Keep these facts in mind:

Some states have rapidly rising premiums abuse, especially in obstetrics, neurology and surgical areas. But on average, doctors still less for insurance - 3.2% of their income - which included in the rent.

Grand Jury Prize plays a minor role in the development of premiums to rise despite allegations raised that greedy lawyers and frivolous claims are to blame. Less than 2% of the outcome of the prosecution for medical malpractice in a favorable verdict in the trial, according to estimates by the insurance industry.

Why are the insurance against rising costs of error? The problem is twofold according to research by the National Conference of State Legislature. First, the insurer needs more money - up to 33% between 2000 and 2001 are paid. Second, the interest on bonds and stock prices have eroded investment earnings of insurance, the main source of gains. Medical Insurance Association of America, the lobbying group for doctor-owned insurance companies, said that capital gains to 47% of the turnover of his business in 1995, but only31% in 2001

Thirdly, there is little competition among insurers, after a considerable consolidation among insurance companies and providers of health services in recent years. With little incentive from the major providers of courses must negotiate with the insurers and insurers with large market shares of these costs by charging the buyer, is in increasing their profits, fed growth quick insurance premiums.