This post is from Attorney Edward A. (“Ted”) Bills who can be reached at  719.444.1000  or at   http://www.SpringsAttorney.com.

Anything provided on this blog is for informational purposes only and by no means consittutes an attorney-client relationship between a visitor and Attorney Ted Bills.  Any reader of this blog is urged to consult competent legal counsel regarding specific points of law and not construe any material transmitted via this blog as legal advice.

Medical Malpractice Insurance Premiums:

The cost of Medical Malpractice Insurance is the #1 topic at the 19th hole of every private golf course in the US.

Doctors believe, and would like their patients to believe, that their high medical malpractice insurance rates are the result of outrageous awards from juries and that, if it were not for the lawyeres bringing such suits the doctors would be fine.

However, that is not a position that is supported by evidence. In fact, there is significant evidence that efforts to impose caps on damages hurts patients and does not help doctors.

In a 2002 report by a congressional advisory commission, it was reported that, on average, physicians pay only 3% of their annual revenue for malpractice insurance – and even OB-GYN physicians, the specialty with the highest rates, those doctors paid only 6% of their revenue for insurance.

Somehow the insurance companies have convinced doctors that the reason for escalating insurance premiums are the out-of-control jury awards in medical malpractice cases. The facts,however, tell another story. According to a 2003 study by USA Today, less than 2% of malpractice claims result in a winning trial verdict.

So, who is at fault? What has caused the increase in malpractice insurance rates? The answer is “The economy”, or more specifically, the stock and bond markets.

Insurance companies are not making as much money in the markets as they did in the 1990s when they lowered medical malpractice insurance premiums.

The simple fact is, when earnings from investments are down, any business much either (a) lower costs, (b) increase revenues, or (c) do both. Insurance companies raised premiuims and told doctors that the higher premiums were caused by lawsuits – something that is easier to explain to congress, doctors, and patients than a reduction in earnings on investments.

The real bad guys are the insurance companies and everyone needs to understand that fact.

Attorney Ted Bills has one mission – to fight for the rights of personal injury victims and those who have been devastated by the misconduct of others – he represents clients which an aggressive approach designed to provide SWIFT justice. Attorney Bills is a member of the American Bar Association, the Colorado Bar Association, the Colorado Trial Lawyers Association, and the El Paso County (Colorado Springs) Bar Association. He works in tandem with his clients to provide assertive, business-savvy, legal services that solve problems, reduce delays, and minimize costs.