October 27, 2004—GE Medical Protective, the nation's
largest medical malpractice insurer, now admits that caps on compensation
for non-economic losses in lawsuits will not lower doctors'
malpractice insurance premiums.1
The regulatory filing defends the insurer's request to raise rates
19% just one year after the state's voters narrowly passed a constitutional
amendment to cap doctors' liability for the most severe, life-altering
injuries at $250,000.
Insurance industry and medical association proponents of the
measure claimed that caps would lower premiums for doctors. A
report2 issued last March by GE Medical
Protective repeated the claim. Now the insurer finally admits
the truth, that "capping non-economic damages will show loss
savings of 1.0%."
"Apparently the insurance industry has no shame whatsoever,"
said Todd A. Smith, president of the Association of Trial Lawyers
of America. "They lied to the doctors and the voters of Texas—and
too many of the doctors and voters believed them. They have lied
to doctors and voters everywhere for years, while stripping away
the legal rights of American families."
Smith also pointed out that the top 10 U.S. insurers reported
record profits of $25 billion in 2003, according to Forbes.com.
(In New York, the Attorney General is pursuing allegations that
these mega-insurers have engaged in massive fraud, using secret
kickbacks to corner markets and price-gouging customers large
and small.) Property and casualty insurers, specifically, increased
their profits 1,000% in 2003, according to Insurance Services
Office, the main data source for the industry.
"The facts have always been clear, but maybe now doctors
will understand that they have been manipulated by their own insurers,"
Smith concluded. "We need our good doctors. We need our civil
justice system. And we need insurance reform. No more lies, please."
