California Medical Malpractice Insurance Rates Too High
Contrary to what many doctors and politicians have been saying for years, insurance company practices are the reason behind high premiums – not payouts from medical malpractice lawsuits. In fact, the California Department of Insurance (CDOT) has just released a statement that medical malpractice insurance rates are too high because insurance companies are not paying out enough.
Medical malpractice occurs where a doctor or other medical professional fails to exercise the standard of care required and a patient is harmed or even killed as a result. When medical professionals are found liable and required to compensate their victims, many physicians rely on insurance policies to cover those costs.
However, it appears that many medical liability insurance companies are charging doctors too much and paying those harmed too little.
According to the study by CDOT, medical malpractice insurers are paying out only 2-3% of the premiums, keeping the rest of the money collected from doctors. CDOT noted that the “low loss ratios are one indication that premiums may be too high.”
In addition to hurting doctors by demanding high fees, consumers are hurt because victims of malpractice must fight insurers to get claims paid. As stated by David Heller, president of Santa Monica’s Consumer Watchdog, “The medical malpractice premiums in California have so much extra padding right now because the companies are taking premiums from doctors and hospitals but don’t have to pay much out in claims.”
Many are calling for the insurance commissioner to hold rate hearings.
If you believe you have been injured by medical malpractice, please contact the dedicated San Francisco medical malpractice lawyers at Bostwick & Peterson, LLP. We have experience representing individuals against doctors, hospitals and insurance companies and will fight to ensure you obtain the compensation you deserve.
