Courts, Docs & Your wallet; Specter of Lawsuits Costs Patients, Doctors
The Pantagraph (Bloomington, IL)
September 14, 2003


Dr. Larry Nord's insurance premium soared 40 percent this year, but he says patients are paying an even heavier price in the medical malpractice "crisis."

"The biggest group that's being affected is patients -- patients because we have to practice defensive medicine," he said.

Not according to an August 2003 U.S. General Accounting Office report that found minimal evidence of reduced access to care, and stated there was insufficient data to measure the impact of defensive medicine on costs.

…

The debate is clouded by conflicting studies.

A July 2002 report by the General Accounting Office found payouts on medical malpractice cases appear to be the "primary driver" of rising premiums, but a full analysis was impossible because of insufficient data. The GAO suggested
Congress encourage insurance organizations and regulators to make additional information available.

Ben Edmonds, research director of the Chicago-based Coalition for Consumer Rights, cited a study by the consumer group Americans for Insurance Reform showing payouts in Illinois malpractice cases declined between 1991 and 2001, while premiums sharply increased.

Edmonds said insurance companies are trying to scapegoat malpractice victims and attorneys for falling investment income that consumer groups contend is the true cause of rising premiums.

The groups say insurance companies suffered losses because they under-priced policies while trying to build market share before the stock market and interest rates sharply declined.

For a copy of the complete article, contact AIR.