The Myths of Medical Malpractice “Reform” and Obama’s Health Insurance Plan, Part IV–The Myth that “Reform” Will Create Savings


As we explored in Parts I, II, and III, there are many myths of medical malpractice “reform”  in the health insurance debate.

The biggest myth is that medical malpractice “reform” will create great cost savings.

What is the dollar cost of medical malpractice cases?  No politician has stated what it is although “reformers” claim that junk and frivolous malpractice cases are driving-up the costs for everyone.

The truth is that 1 to 1.5% of the total of all medical costs can be attributed to medical malpractice.  This is according to a leading actuarial firm, Towers Perrin.    That means that out of every $100 spent on medical care, $1 to $1.50 goes to pay for medical malpractice costs which include malpractice insurance premiums, legal defense costs, and eventual pay-outs.

Therefore, the cost of medical malpractice is not driving-up the overall cost of medical care in this country.  The politicians do not want the public to know this.  It is easier to create bogeymen of greedy trial lawyers and phony plaintiffs than get to the heart of the matter as to the costs of healthcare. 

Mark E. Seitelman, www.seitelman.com, 9/16/09.

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One Response to The Myths of Medical Malpractice “Reform” and Obama’s Health Insurance Plan, Part IV–The Myth that “Reform” Will Create Savings

  1. […] is no more than 1-1.5% of the entire cost of our healthcare system.  See our prior posts here.  See also our prior posts on the medical malpractice and Obamacare at I, II, III, and […]

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