The Center for Justice and Democracy has released a report that shows that net premiums for medical liability insurance has increase 120% over the last five years even though malpractice payout have remained flat. According to a NY Times story, the premium increases were 21 times actual amount of the payouts. During the same period, the insurance companies' stock prices increased in value over 100%.
http://www.nytimes.com/2005/07/07/business/07insure.html
The Times quotes Dr. Mike Kreidler, the Washington State insurance commissioner:
"I came full circle," he said. "I started out with a strong bias against trial lawyers and lawsuits, and now I see the trade-off and I have both sides, the trial lawyers and the insurance companies, mad at me."
Of course, the insurance companies claim that the report is faulty and fails to take into account the need to put money away for future payouts. But if the amount of pays is flat, how can they jusify a 120% increase in premiums?
The Repugs haven't been pushing the malpractice issues much lately but you can bet they will again when they need to pay off their cronies in big insurance.
Several other reports have come out recently that come to the same conclusion:
http://www.medicalnewstoday.com/medicalnews.php?newsid=27045
http://www.kansascity.com/mld/kansascity/business/12080226.htm