Medical Malpractice Insurers’ Profits Higher Than Nearly All Fortune 500 Companies

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Tuesday, October 06, 2009 at 11:57 am

The American Association for Justice — the trial lawyers’ lobby group — has just released an astounding statistic:  medical malpractice insurance companies’ average profits are higher than those of 99 percent of Fortune 500 companies.

As the nation remains mired in a debate over health care reform and how to keep down the costs of expanding coverage, AAJ is trying to point out that Republicans claims that medical malpractice lawsuits are one of the big cost drivers is completely misleading. In fact, though malpractice claims and so-called “defensive medicine” does account for a small percentage of unnecessary costs, medical errors and the astronomical profits of malpractice insurers appear to be a bigger part of the problem.

AAJ’s report released today finds that the average profit of medical malpractice insurance companies is higher than 99 percent of all Fortune 500 companies and 35 times higher than the Fortune 500 average for the same time period; and malpractice insurers have seen their profit margins range from 5.9 percent to 74.8 percent, with an average of 31.2 percent. The report also finds that malpractice insurers have publicly overestimated their losses and underestimated their profits in an attempt to suggest the insurance business and medical practice in general faces a crisis that must be resolved by so-called “tort reform” — i.e., making it harder for patients to sue and to collect damages for their injuries.

“Insurance companies are gouging doctors on their premiums to mislead lawmakers,” said American Association for Justice President Anthony Tarricone, managing partner at Kreindler & Kreindler LLP, in a statement released with the report. “And today, injured patients are often left with no avenue to pursue justice, while health care costs continue to skyrocket.”

Comments

24 Comments

Everyday Scientist (NotScience) » Tort Reform Foolishness. . .Still Going
Pingback posted October 6, 2009 @ 5:53 pm

[...] pick on tort law, then how about we fix it by capping medical malpractice insurers’ profits, which are significantly higher than the profits of nearly all the Fortune 500 companies. Or maybe we could reduce the medical errors that give rise to all the suits in the first place? | [...]


harrylord
Comment posted October 6, 2009 @ 8:22 pm

Iatrogenics: Medical induced injuries, if this is not bad enough, we have political corruption to coverup this medical malpractice! A forensic audit on this racket, and the pharmaceutical formulary that allows this crime to pay at the expense of our health.


Swami_Binkinanda
Comment posted October 6, 2009 @ 8:32 pm

Anybody surprised by this? -Crickets.-


chrisjay
Comment posted October 6, 2009 @ 8:47 pm

SOCIALISTS!!!!!!!


Medical Malpractice Insurers’ Profits Higher Than Nearly All Fortune 500 Companies | Buy Health Insurance Online
Pingback posted October 7, 2009 @ 12:18 am

[...] Medical Malpractice Insurers’ Profits Higher Than Nearly All Fortune 500 Companies – http://washingtonindependent.com/62646… 12 hours [...]


Tom Necela
Comment posted October 7, 2009 @ 4:46 am

Appalling, but not surprising — see recent article on Ten Worst Insurance Companies in America for more detailed info on this topic http://bit.ly/2JZPqJ


Real helath care reform - Political Forum
Pingback posted October 7, 2009 @ 7:38 am

[...] [...]


George
Comment posted October 7, 2009 @ 10:15 am

And of course the repubs want tort reform as a priority. If all lawsuits were nullified it wouldnt amount to 1 percent. So if the repubs make it sound like that will drive down the price of healthcare it wont.


dalejbroussard
Comment posted October 8, 2009 @ 2:14 am

And when I hear the doctors bad mouth TRAIL LAWYER for all the high expensive MedMal insurance…….that along shoots my blood pressure off the charts.


christopherrussomd
Comment posted October 11, 2009 @ 2:16 pm

Any bill that is produced that does not include real tort reforms can not be taken seriously. At this very moment, on the cover of the Tampa Bay Yellow Pages, there are three different advertisements for three different malpractice firms. JUST ON THE COVER! On my way to work, I see SIX roadside billboards, advertising the services of malpractice attorneys. This along a four mile stretch of northbound 275. If you don't think physicians think about these things, you are wrong. I know I do. I know my colleagues do. You can bet I am going to order all of the tests in the book to CMA. I am not about to give away what took me over a decade and a half to earn. Not a chance. The arguments against real tort reforms are old, tired, and stopped holding water a long time ago.

Christopher Russo, M.D.
University of Michigan Medical School '94


adidas outlet
Comment posted June 2, 2010 @ 6:09 am

Thanks for this interesting post,i like it.


fortune 500 « insurance webs
Pingback posted June 4, 2010 @ 11:10 pm

[...] 8.Medical Malpractice Insurers’ Profits Higher Than Nearly All The American Association for Justice — the trial lawyers’ lobby group — has just released an astounding statistic:  medical malpractice insurance companies’ average profits are higher than those of 99 percent of Fortune 500 companies. [...]


louis vuitton neverfull mm
Comment posted August 21, 2010 @ 12:01 pm

Anybody surprised by this? -Crickets.-


Sacredhearts02
Comment posted September 3, 2010 @ 11:27 am

thanks for interesting post…. relevant information….


medical negligence solicitor 
Comment posted September 8, 2010 @ 9:31 am

profit of medical malpractice insurers is bigger part of problem.


healthcare web » Malpractice Insurance Companies in Michigan
Pingback posted October 30, 2010 @ 1:25 pm

[...] 3.Medical Malpractice Insurers’ Profits Higher Than Nearly All AAJ’s report released today finds that the average profit of medical malpractice insurance companies is higher than 99 percent of all Fortune 500 companies and 35 times higher than the Fortune 500 average for the same time period; … The Michigan Messenger… http://washingtonindependent.com/62646/medical-malpractice-insurers-profits-higher-than-nearly-all-fortune-500-companies [...]


Medical Malpractice Insurers’ Profits Higher than 99% of All Fortune 500 Companies | San Antonio Personal Injury Lawyer
Pingback posted November 15, 2010 @ 3:53 pm

[...] American Association for Justice (AAJ) recently released a statistic claiming that medical malpractice insurance companies’ average profits are higher than 99 [...]


medical negligence ireland
Comment posted February 7, 2011 @ 11:26 am

when something goes wrong the medical fraternity tend to become highly elusive and defensive. In Ireland taking medical negligence claims is often the only way to learn precisely what went wrong with your treatment .


Insurance Companies Fighting to Survive Frivolous-Lawsuit Onslaught | Medical Malpractice Quote
Pingback posted March 17, 2011 @ 6:25 am

[...] insurance, not malpractice insurance! The malpractice insurers are a ones on a ropes, right?” Wrong again: “medical malpractice insurance companies’ normal increase are aloft than those of 99 percent [...]


JST Books
Comment posted April 4, 2011 @ 11:42 am

If you have suffered an injury as a direct result of negligent medical treatment or care that you have received, this may be referred to as ‘medical malpractice’. What clients must realise is that an injury caused by medical treatment does not necessarily mean that the treatment was ‘negligent’. medical malpractice compensation


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General Insurance Agency
Comment posted May 31, 2011 @ 4:57 pm

We as a society hold doctors on a pedestal. Theirs is a profession of character and integrity, one that we all at one point might have aspired to become a part of.


Anonymous
Comment posted June 17, 2011 @ 12:30 pm

We have the experienced solicitor to recover injury claims. It is short time procedure… medical accident


1365973
Comment posted September 7, 2011 @ 12:50 pm

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