Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Bronco_Buster_FweetHyagh
"Caps on damage awards have almost zero effect on rates. The insurance companies are sticking it to Doctor's, not the lawyers. "

You are correct, to a degree...

Yes, the insurance carriers ARE sticking it to Doctor's, and the reasons for that ARE varied and include that the markets right now are not providing the insurer's needed rate of return on invested premiums. That will change over time.

But it is also due to the fact that insurer's CAN stick it to Doctors because the number of insurers writing malpractice insurance has significantly declined, as some that wrote insurance with reasonable margins saw their investment income dry up and faced an uncertain risk due to moronic jury awards. In effect, the lawyers are sticking it to the insurers, and then the insurers turn around and either stick it to the Doctors or recently, leave the business.

Capping damage awards will to some degree improve the environment such that more insurer's may be willing to underwrite policies and an increase in the number of underwriters will increase competition and reduce rates.

20 posted on 02/22/2005 7:39:25 PM PST by Ethrane ("semper consolar")
[ Post Reply | Private Reply | To 17 | View Replies ]


To: Ethrane

aren't hired-gun "expert witnesses," i.e. greedy M.D.'s, a big part of the problem? Doctor's sticking it to Doctor's, in the vernacular here.


22 posted on 02/22/2005 8:08:22 PM PST by gusopol3
[ Post Reply | Private Reply | To 20 | View Replies ]

To: Ethrane

Texas passed malpractice reform telling citizens the doctors will charge less in the future. Could you explain why we have not seen any reduction in fees.


29 posted on 02/22/2005 9:12:46 PM PST by Orange1998
[ Post Reply | Private Reply | To 20 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson