Oh, wait a minute--that's a torte not a tort!
Myth #4
Tort reform is the way to cut costs in our health care system.
Facts
Before investigating this myth, I was one of the legions of underinformed people that believed this one to be true. However, after researching this issue, I have changed my stance. It isn’t that I don’t believe tort reform has merits; it’s just that I don’t think it’s a major factor in the costs of health care in this country. Why? Well, let me tell you.
But first, I’d like to address those people who are called “tenthers,” those who believe health care reform is unconstitutional and is a states’ rights issue. Funny thing is that many of these same people are saying that tort reform is a national issue, not a states’ rights issue. You can’t have it both ways, people. And, I think many “tenthers” don’t know that many states have already instituted tort reforms.
Now on to the tort reform myth. One of the hardest things about researching this one is that there doesn’t seem to be much room for a middle-ground, objective view (I could address the term objective in another blog, but I won’t—I’ll just say a few words. I don’t believe there is pure objectivity. We’re human, therefore we think. [My apologies to René for changing his words.] In thinking, we form opinions. Okay, I’ll stop). I’m talking about the research that is out there—real research, not something from Fox News or the democratic underground. Even the Congressional Budget Office seems to contradict itself. Now I’ll get to some facts.
Did you know that medical malpractice liability is only about 2 percent of our total health care costs? Yes, that’s right—only about 2 percent. Depending on the numbers different researchers use, it is as low as 0.9 percent and goes up to 3 percent. These are the lower and upper limits that I found. Economists and health care researchers have found mixed results related to tort reform. One thing that seems to be consistent, though, is why medical malpractice insurance is so expensive.
That brings us to the insurance companies. In the United States, for-profit insurance companies have driven up the price of malpractice insurance. Did you know that the CEO of WellPoint makes upwards of $9 million dollars a year???? Huh, how does she do that? But I digress--WellPoint is a health insurance company. A comparison that the St. Petersburg Times did of Canadian and American malpractice insurance rates show the differences in costs.
Comparison of malpractice insurance rates
TORONTO
Orthopedic Surgeon $10,485
Obstetrician $36,353
Neurosurgeon $29,233
MIAMI
Orthopedic Surgeon $140,000
Obstetrician $191,000
Neurosurgeon $237,000
TAMPA BAY
Orthopedic Surgeon $72,000
Obstetrician $98,000
Neurosurgeon $121,000
http://www.tampabay.com/news/canada-keeps-malpractice-cost-in-check/1021977
How can Canada keep the costs so low? Their system doesn’t rely on private insurance companies; it’s run by the Canadian Medical Protective Association. Maybe American physicians should follow suit. I don’t think our doctors should be penalized by having to pay such high rates for malpractice insurance. The Congressional Budget Office estimates that “lowering premiums for medical liability insurance by 10 percent would reduce total national health care expenditures by about 0.2 percent.” Page 3, CBO letter to Senator Orrin Hatch, October 9, 2009.
Some researchers have stated that they believe even if tort reform is enacted in all states that it won’t make that much of a difference. This has been shown to be the case in those states that have enacted tort reform. The problem also doesn't seem to be that most doctors practice defensive medicine thereby driving up the costs. The difference between states where there has been tort reform and there hasn't been is negligible as to overall health care costs. So something else is at work. The differences in costs are not enough to make a dent in our overall health care costs. One culprit that most of these researchers point to is the insurance industry. They say that the profit motive is what drives malpractice premiums. Another problem is technology and health care. Technology is expensive, and, as health care consumers, we demand it. This leads to higher health care costs.
I would say that everyone needs to look into these issues. Stop blaming the Democrats for protecting trial lawyers, stop blaming trial lawyers, stop blaming doctors, stop blaming President Obama for everything, stop blaming and start looking at more than one news source for information.
Check out www.pbs.org/newshour/updates/health/july-dec09/, http://www.cgo.gov/, http://www.healthcarereformmyths.org/, http://www.rwjf.org/, http://www.kff.org/, http://www.nchc.org/, http://chppr.iupui.edu/research/healthreformmyths.html .
Tort reform is the way to cut costs in our health care system.
Facts
Before investigating this myth, I was one of the legions of underinformed people that believed this one to be true. However, after researching this issue, I have changed my stance. It isn’t that I don’t believe tort reform has merits; it’s just that I don’t think it’s a major factor in the costs of health care in this country. Why? Well, let me tell you.
But first, I’d like to address those people who are called “tenthers,” those who believe health care reform is unconstitutional and is a states’ rights issue. Funny thing is that many of these same people are saying that tort reform is a national issue, not a states’ rights issue. You can’t have it both ways, people. And, I think many “tenthers” don’t know that many states have already instituted tort reforms.
Now on to the tort reform myth. One of the hardest things about researching this one is that there doesn’t seem to be much room for a middle-ground, objective view (I could address the term objective in another blog, but I won’t—I’ll just say a few words. I don’t believe there is pure objectivity. We’re human, therefore we think. [My apologies to René for changing his words.] In thinking, we form opinions. Okay, I’ll stop). I’m talking about the research that is out there—real research, not something from Fox News or the democratic underground. Even the Congressional Budget Office seems to contradict itself. Now I’ll get to some facts.
Did you know that medical malpractice liability is only about 2 percent of our total health care costs? Yes, that’s right—only about 2 percent. Depending on the numbers different researchers use, it is as low as 0.9 percent and goes up to 3 percent. These are the lower and upper limits that I found. Economists and health care researchers have found mixed results related to tort reform. One thing that seems to be consistent, though, is why medical malpractice insurance is so expensive.
That brings us to the insurance companies. In the United States, for-profit insurance companies have driven up the price of malpractice insurance. Did you know that the CEO of WellPoint makes upwards of $9 million dollars a year???? Huh, how does she do that? But I digress--WellPoint is a health insurance company. A comparison that the St. Petersburg Times did of Canadian and American malpractice insurance rates show the differences in costs.
Comparison of malpractice insurance rates
TORONTO
Orthopedic Surgeon $10,485
Obstetrician $36,353
Neurosurgeon $29,233
MIAMI
Orthopedic Surgeon $140,000
Obstetrician $191,000
Neurosurgeon $237,000
TAMPA BAY
Orthopedic Surgeon $72,000
Obstetrician $98,000
Neurosurgeon $121,000
http://www.tampabay.com/news/canada-keeps-malpractice-cost-in-check/1021977
How can Canada keep the costs so low? Their system doesn’t rely on private insurance companies; it’s run by the Canadian Medical Protective Association. Maybe American physicians should follow suit. I don’t think our doctors should be penalized by having to pay such high rates for malpractice insurance. The Congressional Budget Office estimates that “lowering premiums for medical liability insurance by 10 percent would reduce total national health care expenditures by about 0.2 percent.” Page 3, CBO letter to Senator Orrin Hatch, October 9, 2009.
Some researchers have stated that they believe even if tort reform is enacted in all states that it won’t make that much of a difference. This has been shown to be the case in those states that have enacted tort reform. The problem also doesn't seem to be that most doctors practice defensive medicine thereby driving up the costs. The difference between states where there has been tort reform and there hasn't been is negligible as to overall health care costs. So something else is at work. The differences in costs are not enough to make a dent in our overall health care costs. One culprit that most of these researchers point to is the insurance industry. They say that the profit motive is what drives malpractice premiums. Another problem is technology and health care. Technology is expensive, and, as health care consumers, we demand it. This leads to higher health care costs.
I would say that everyone needs to look into these issues. Stop blaming the Democrats for protecting trial lawyers, stop blaming trial lawyers, stop blaming doctors, stop blaming President Obama for everything, stop blaming and start looking at more than one news source for information.
Check out www.pbs.org/newshour/updates/health/july-dec09/, http://www.cgo.gov/, http://www.healthcarereformmyths.org/, http://www.rwjf.org/, http://www.kff.org/, http://www.nchc.org/, http://chppr.iupui.edu/research/healthreformmyths.html .
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