Myth
Doctors' malpractice premiums increase
because of lawsuits.
True Facts
  • Insurance premiums are tied directly to the performance of the stock and bond markets, where insurance companies invest their premium dollars.
  • Between 1988 and 1998, Health Care Costs rose 74.7%. Malpractice premiums in the same time period rose a total of 5.7%. Insurance premiums are rising far slower than the cost of health care.
  • Between 2001-2002, claims PAYOUTS by insurance companies DECREASED 8.2% and verdicts over $1 million decreased over 10% but MALPRACTICE PREMIUMS in fact INCREASED following these results.