Repeating a lie long enough gives the lie a life of its own and truth in its telling.
Welcome to the main thrust of the chamber of commerce, tort reform lobbyists, and insurance industry's main theme for the past several years.
Also, welcome to data that busts that lie.
We now know the insurance industry's moves in tort reform are nothing more than a "pig in lipstick". Not very pretty, and pigging and digging for money.
We previously reported the insurance industry study identifying record profits by insurance companies these past few years. See, Tort Reform: Insurance industry profits are up, up and up.
Now we know the "why" and the "how" their profits are up. Just charge more.
John Day of Day on Torts references a study from the Amercicans for Insurance Reform that demonstrates that the "insurance crisis that hit doctors between 2001 and 2004 was not caused by claims, payouts or legal system excesses as the insurance industry claimed."
Thanks to John Day from Tennessee and his "Day on Torts" for this information:
This report states:
- Insurance payouts for claims from 2001-2004 were stable or falling throughout the decade.
- Medical insurance premiums were never, ever connected to actual payouts for claims.
- Medical insurers increased reserves only for potential future claims; the reserves accounted for 60 per cent of the premium increases!
UPDATED 4/2/2007 @1:54 pm: This post was referenced by A.J. Silletto at Musings today at It’s no April Fool’s joke – “Tort Tax” costs American families over $9,000. However, he also clouds the issue with a post entitled “Jackpot Justice: The True Cost of America’s Tort System.” which references a Pacific Research Institute report which can be found by clickings here.
I admit I was aware of the PIR report but discounted its "tort tax" study since it contained too much speculative data (or at least speculative in my book) regarding the incidential costs of the tort system as to additional diagnostic testing, admissions, etc.
The above report from Americans for Insurance Reform addresses and helps refute the tort reform syllogism of doctors are leaving states due to high medical malpractice premiums; premiums rise due to frivilous and costly lawsuits by "trial lawyers". Well, the first post I referenced above shows insurance company profits are UP, and the second post shows that the costs of premiums was not connected to payouts but to reserves that were never needed.
The PIR (Pacific Research Institute) hails from the right, and Americans for Insurance Reform hail from the left, but the substance is what controls and not the labels.
In any event, it is your right to a jury trial which is protected by the United States and Kentucky Constitutions which are at stake and mere insurance profits and cost-sharing plans by those who inflict harm and make mistakes is not a good enough reason to throw away a right that has been fought and died for since King John and the Meadow at Runnymede (Magna Carta).
Some blogs following the tort reform debate in more detail are:
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