Let's Reform Tarts, Not Torts
Creative Loafing Atlanta
January 22-28, 2003

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- Lie: Insurance companies are losing money and may stop insuring doctors and hospitals.

Truth: Medical malpractice is hugely profitable. The industry will spread propaganda that it pays out $1.17 for each $1 collected in premiums. That is based on what is called a "loss ratio," and "it's an absolute fraud," says Bill Clark of the Georgia Trial Lawyers Association. The "loss ratio" is merely an estimate. The actual payouts run about 30 percent less than the industry's self-serving "loss ratio" guesstimate. Moreover, over the last three decades, there has been no explosion in medical malpractice payouts-- they have remained relatively stable and almost flat during the last 15 years, according to a study by Americans for Insurance Reform, a national consumers group. Litigation payouts increase at less than 6 percent a year nationally-- far less than the general hike in medical costs. Georgia's per-case payouts are $100,000 less than the national average-- and there are many safeguards against unreasonable awards in this state.

- Lie: A cap on non-monetary damages will reduce premiums. President Bush made this assertion in his speech last week, noting that California has long had a cap.

Truth: The California experience has stripped the citizens of that state of their rights. But it hasn't reduced premiums, which are $8,000 a year higher than Georgia.

For a copy of the complete article, contact AIR.