Thursday, October 8, 2009

AAJ: Medical Malpractice Insurers' Profits Higher Than Most Fortune 500 Companies

The Washington Independent reported, "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 President Anthony Tarricone said, "Insurance companies are gouging doctors on their premiums to mislead lawmakers," adding, "Today, injured patients are often left with no avenue to pursue justice, while health care costs continue to skyrocket."

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