From the Tennessean
Larry's recent column on the med mal issue.
Update: link repaired.
This is a very good article. We are in an insurance crisis. An insurance company makes money in two ways, first by paying out less than what it takes in, and secondly by collecting all the interest on the money that it is hanging on to. So, to make the most money, you want the most number of people to pay the most so you win in both ways. Higher cost of services, whether it be healthcare costs or possibility of huge med-mal payouts only means you can raise your rates more. The only thing that stops you from charging as much as possible is that fewer people may buy in. Now, here in Tennessee, some of the main insurance firms also get to function as "non-profit". Figure that one out. Anyway, we are in an insurance crisis, in healthcare, auto, malpractice, etc. (Did you see how much the CEO of United Healthcare got as a bonus)?
Now, here in Tennessee, the Florida model of having patients sign binding arbitration agreements with pre-set limits on awards is about to hit. This is being proposed by insurers as a way to prevent liability premiums from rising.