Over a decade ago, medical malpractice insurers reported inflated costs to state regulators. Those numbers were then used to charge higher rates to doctors and hospitals. The consumer advocacy group studying the dilemma has found that later costs were reported as being far below the estimates. The Foundation for Taxpayer and Consumer Rights (FTCR) has found that insurance companies were reporting loss expectations of nearly $40 billion to state insurance regulators from 1986 to 1994, while they only paid less than $27 billion in claims for the period.
“By inflating their estimated ‘losses’ as much as 66 percent, medical-malpractice insurance companies have misled regulators, lawmakers and the public and overcharged physicians and other healthcare providers,” FTCR founder Harvey Rosenfield stated. “Because all insurance companies use the same flawed accounting practices, it is likely that the insurance industry is responsible for several billion dollars in premium overcharges over the last few years, a period during which premiums have soared.”
The study, released last summer, closely matches a Center for Justice and Democracy report showing that the nation’s largest insurers are taking in more than double what they did just five years ago, while paying claims at or barely above the same level as 2000.
If you have any questions or concerns regarding personal injury, or medical malpractice, try contacting Jim S. Adler & Associates in Dallas, Texas.
