Ed,
No time to go into great detailed research on the trial lawyers' brief at this moment, but yes I did read it. My reaction to it was similar to my reaction to the "research" pieces done by the insurance industry groups: these guys are using selected statistics and selected time periods to argue a brief, nada mas. If you think you will find "truth" in there, then you are mistaken.
"Second, there are a lot of reasons why more insurance companies don't get into the business and why many insurance companies are deserting some markets and leaving less competition in their wake. Read the study."
There was nothing in the study that would make me think companies would leave a profitable line of business other than it was no longer profitable.
"By the way, did you note that the date the article you posted said that insurance rates for medical practicioners skyrocketed was, drum roll....the year 2,000. Now wasn't that the time period that the stock market dropped dramatically and all the insurance companies stopped getting those big stock market returns on their policy dollars. Any connection?"
This comment doesn't make any sense. They raised rates in 2000 A.D. in anticipation of the stock market dropping? If you had chosen 2001 (in reaction) then maybe, but not in anticipation. Besides, you'd have to know what investments the malpractice insurers were in to figure out if they were hit or not in 2000 by the Naz correction. If you look at an insurance company balance sheet and compare 12/00 with 12/01 you don't see it (check out Aetna's, for example, Investment Securities dropped from 14,308.8 million to 14,260.1 million. No, no connection.
"As I've said before, it's a very complicated issue and it's not much, if at all, related to frivolous or out of control lawsuits. Much more of the problem lies in barriers to entry, the clout of insurance industry lobbyists, inefficiency in the industry, and the carryover from the insurance industry's exemption from antitrust laws."
That statement is pure trial lawyers' brief. It is somewhat complicated, and very difficult to find a neutral observer/commentator, but it certainly won't be found in the "Center for Justice & Whatever". As we know in investments, it's not only costs that cost, but uncertainty that costs. The scourge of trial lawyers scouring the planet for big prey (whether tobacco, fast food, big auto, insurance companies, ad infinitum) and the big payday have placed an unreasonable and incredibly high tax on every American. In one sense, you cannot blame them, since it is the corruption and corruptibility of the legal system that presents them with such golden opportunities. Like the poisonous spider crossing the flooded creek on the back of the turtle who bites the turtle, killing him, who says in response to "Why?"--"You knew I was a spider when you carried me, it's in my nature." It is not the insurance system that needs to be reformed; business owners will seek out profitable lines of business, adjust for risk and charge accordingly. It is the legal system (which see: OJ, class action, big bankruptcy, etc.) which needs a huge overhaul.
"Have you ever wondered how come so many doctors you know are paying huge sums for med mal coverage and rarely paying any claims. Many don't even personally know a doctor who paid any large claim. The same for attorneys. Where is the money going?"
Well, first of all I don't know that many doctors, but the ones I know feel gouged by malpractice insurance amounts and frightened of the trial lawyer class, frightened into spending an inordinate amount of time (for healers!) into lawsuit proofing themselves, ordering extra and useless tests, worrying about the necessary risks of health care, the needs of the people who are sick and injured and the gaggle of vultures out there waiting to pounce.
As for not knowing anyone personally who paid a large claim, I'd have to ask them (I bet I'd find some). But 50,000 or more die each year on the highway--and you know, I don't know a single person, in my entire life, who has been killed in a highway accident. 2.5 million have died in that period, and I don't know a single one. Maybe nobody died?
Kb |
