No. of Recommendations: 36
ziggy29 writes,

I'm sorry, but no matter how you slice it, a 21.3% decline in malpractice premiums IS a significant drop in medical costs. I'll admit that the group quoted isn't unbiased, but the fact remains that Texas can't handle the number of doctors coming here because of tort reform.

Malpractice insurance premiums accounted for 0.58% of the nation's healthcare spending in 2002, while the actual claims paid out to patients (and their lawyers) were 0.38% of national healthcare spending. The total is less than 1%.

Despite what Rush Limbaugh, the Heritage Foundation, and the Cato Institute tell you, medical malpractice is "lost in the round-off" in terms of the nation's healthcare spending.

Interestingly, the insurance industry enjoys higher overheads & profit on malpractice insurance than it collects on health insurance ($58 premiums against $38 in claims & payouts = overhead rate of 34%.

I suspect malpractice insurance would also greatly benefit from the removal of private insurers from the equation.

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