Medical Malpractice Insurance Profits Soar - So Much For Tort Reform Crisis
About seven years ago, there was something that various P.R. companies and media outlets referred to as “the Medical Malpractice Crisis.” The premise was this: Due to constant onslaught of costly and pointless medical malpractice cases filed by greedy lawyers on behalf of people who weren’t really injured, medical malpractice insurance companies were all on the brink of insolvency. Going bankrupt. Completely tapped out. Could barely afford to keep the lights on.
The only way that these companies could possibly stay alive as commercial enterprises was to raise their insurance rates dramatically. They didn’t want to do that, of course, but really, what other choice did they have? So they raised their rates, and some doctors found the rates essentially unaffordable, and since they couldn’t practice medicine without medical malpractice insurance, there were some cases of doctors either leaving the states where they set up their practices or leaving medicine altogether.
The outcry was enormous, and legislatures all over the country tried to pass “damage caps,” which are arbitrary limits on the amount of money that a victim of medical malpractice could receive. And in many cases, these caps were successful. In Texas, for example, there is a cap of $250,000 for non-economic damages in lawsuits against doctors. Florida has a $500,000 cap, unless there is a death or permanent vegetative state, in which case the cap is $1,000,000.
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