The American Association for Justice (AAJ) recently released a statistic claiming that medical malpractice insurance companies’ average profits are higher than 99 percent of all Fortune 500 companies. AAJ points out that medical malpractice lawsuits only account for a small percentage of unnecessary costs. The bigger problem is medical errors and the profits of malpractice insurers.
The report released by the AAJ also states that the average profit of medical malpractice insurance companies is 35 time higher than the Fortune 500 average for the same time period, and that malpractice insurers have seen their profit margins range from 5.9 percent to 74.8 percent, with an average of 31.2 percent. In addition, the report finds that malpractice insurers have publicly overestimated their losses and underestimated their profits in an attempt to suggest that insurance business and medical practices face a crisis that must be resolved by tort reform. This report released by the AAJ shows that insurance companies profit the most, and obviously need Tort Reform the least.
AAJ President Anthony Tarricone said,
Insurance companies are gouging doctors on their premiums to mislead lawmakers…And today, injured patients are often left with no avenue to pursue justice, while health care costs continue to skyrocket.”
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Jeremy is back with the same comment I see. Still doesn't make any sense when you go there. Beth this is vital information at the time that many of the commenters are using a made up stat on attorney profits and comparing that to a very small share of the medical providers. The reality is that the Insurance companies have gouged the system from the start and they directed the anger of the people they gouge at us and the injured consumers. We need to keep pointing this out.
Beth, good work getting the FACTS out there. People are beginning to see that insurance companies for what they really are thanks to outspoken people like yourself.
Yeah Mike, he posts the same comment on a lot of blogs. We're working on an official comment policy, but generally if it adds nothing to a post and/or is plastered mindlessly all over the place, it's spam and certainly can/should be deleted.
Beth: Interesting income statement. It doesn't surprise you and me. No big revelation that those crying poverty are making millions or billions off those suffering the injuries caused by professional mistakes. Tonight I'm watching 60 Minutes and they are worried about drug lords and the "mafia" stealing intellectual property. And why are we supposed to be upset about someone pirating movies? Working America worries about their homes, food on the table and medical insurance while Wall Street worries about not getting multi-billion dollar bonuses this year. Unfair? If you’re hungry who gives a damn about movies. Medicine is losing its soul. As an example, remember the person called the patient? This is just one more reason for the Second American Revolution that is quietly beginning to take place. It's not with guns and bullets. Here is how it takes form: “They steal from us; we steal from them. Morality goes to hell in a hand basket. Here is my 50 Minutes comment posted on their site: Is there a new American Revolution taking place? Have you noticed that 6 million or more Americans are out of work; Maddoff stole $76 Billlion while the SEC watched and turned a blind eye; Bush lied to invade another country to spend billions for his war armament buddies who make the armaments; the economically poor-victims of medical mistakes are blamed and get to pay for the mistakes of professionals; the US Chamber of Communism raises millions so a few can make billions off of the few who still have jobs while saying nothing about corporate irresponsibility, theft and fraud; “tort reform” ignores motorcycle manufacturers selling mc’s capable of driving 180 mph and yet there are no roads where speeds exceed 70 mph; “tort reform” ignores wrong-site surgeries; “Oops sorry!”; the US Congress is bought and paid for by special interest groups evidenced by their continuing to vote jobs out of our country while telling us “vote for me”; liar loans are sold as investments while GS bets against pension funds gullible enough to purchase the paper; and you want us to be upset that people are stealing "intellectual property"? Talk to us about food, housing, medical care, shelter and an affordable education; get real. I love Sandra Bullock, but I doubt she’s starving. Matt Damon isn’t going to starve like the millions of Americas who are without an income. The Second American Revolution is just starting; remember the guy who said future wars would be fought with a video camera? Remember that quote and think about our reality. Like I said the second American Revolution has quietly begun.
Jeremy: Please tell me why a legal system that today hardly ever works in the little guy's favor is too adversarial? Are your parents, sisters, brothers, wife, children and friends all healthy? Anyone of them ever been the recipient of a medical mistake? Have you ever used a lawyer? Or do you too subject yourself, family and friends to this less “adversarial” system?
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