Malpractice Reform and Malpractice Insurance Rates

Malpractice lawyers often contend that malpractice tort reform would actually increase malpractice insurance rates. Coming from trial lawyers, this claim has been readily discounted by many, including me because it would seem to defy fundamental principles of economics. But when this same argument gets raised by the American Academy of Actuaries and is published in Modern Physician, it definitely lends more credence to the argument.

The legal system in general does not fall into step with general principles of economics. Nor should it. Very often, lawmakers try to tip events and end up tipping other points that send the car down the opposite path of the one that was intended.

This is not the reason why malpractice reform is a bad idea. It is a bad idea for the 1,000 reasons I have set forth on this blog and elsewhere. But if you are on the fence on this issue, this is the type of stuff you should keep in mind.