Personal Injury Law

Medical Malpractice Insurers? Profits Higher than 99% of All Fortune 500 Companies

By Beth Janicek

The American Association for Justice (AAJ) recently released a statistic claiming that medical malpractice insurance companies' average profits are higher than 99 percent of all Fortune 500 companies. AAJ points out that medical malpractice lawsuits only account for a small percentage of unnecessary costs. The bigger problem is medical errors and the profits of malpractice insurers.

The report released by the AAJ also states that the average profit of medical malpractice insurance companies is 35 time higher than the Fortune 500 average for the same time period, and that malpractice insurers have seen their profit margins range from 5.9 percent to 74.8 percent, with an average of 31.2 percent. In addition, the report finds that malpractice insurers have publicly overestimated their losses and underestimated their profits in an attempt to suggest that insurance business and medical practices face a crisis that must be resolved by tort reform. This report released by the AAJ shows that insurance companies profit the most, and obviously need Tort Reform the least.

AAJ President Anthony Tarricone said,

Insurance companies are gouging doctors on their premiums to mislead lawmakers…And today, injured patients are often left with no avenue to pursue justice, while health care costs continue to skyrocket.'

Full post as published by San Antonio Personal Injury Lawyer on October 31, 2009 (boomark / email).