FOR IMMEDIATE RELEASE: CONTACT: J. Robert Hunter, 703/528-0062
March 28, 2007 Joanne Doroshow, 212/267-2801
New Data Confirms That Doctors Were Price-Gouged
NEW YORK —Americans for Insurance Reform (AIR) announced today the release of Stable Losses/Unstable Rates 2007, a new study that examines fresh insurance industry data to determine what caused the most recent medical malpractice insurance crisis for doctors. The study by AIR, a coalition of over 100 consumer and public interest groups representing more than 50 million people, finds that the insurance crisis that hit doctors between 2001 and 2004 was not caused by claims, payouts or legal system excesses as the insurance industry claimed. Rather, according to the industry’s own data:
Study author J. Robert Hunter, Director of Insurance for the Consumer Federation of America, former Federal Insurance Administrator and Texas Insurance Commissioner, said: “This report is proof positive that the huge medical malpractice insurance rate increases between 2000 and 2003 were not related to a jump in claims. Rather, as in the mid-1970s and mid-1980s, they were simply the result of insurance industry economics, supplemented by insurer hype intended to divert attention away from the mismanagement by insurers that caused the crisis.”
Americans for Insurance Reform is a coalition of over 100 consumer groups from around the country that is attempting to strengthen state oversight of insurance industry practices. AIR is not connected to any trial lawyer or business group.
Americans for Insurance Reform, 90 Broad St., Suite 401, New York, NY 10004; Phone: 212/267-2801; Fax: 212/764-4298
(AIR is a project of the Center for Justice & Democracy)