lowercase thought.
Wednesday, January 05, 2005
Blame the lawyers? Blame the Bush Economy.
In the midst of this malpractice insurance crisis, I've noticed what has become the conservative credo over the past year or so:
Blame the lawyers.
High HMO premiums? High malpractice premiums for docs? Blame the lawyers suing on behalf of patients who have been the victim of medical malpractice.
High drug costs? Blame the laywers for suing on behalf of class-action plaintiffs who have taken these drugs under the assumption that due diligence was done by the companies and FDA to ensure their safety.
Ted Olsen is on Hardball right now blaming the lawyers at the Justice Dept. for the memo in August 2002 suggesting that various "inhumane" torture methods would be fine when used on detainees who were accused of serious terrorist actions. According to the former Bush Administration Solicitor General, Gonzales is the victim of subordinates who gave bad legal advice which was then passed on to the President. When asked whether Gonzales is simply a "messenger boy" who does nothing but pass on others' opinions as his counsel to the President, Olsen ducks the question.
On the malpractice insurance front, we've got a fight on our hands right now in Maryland where the Governor is blaming lawyers and juries for the 30%+ increase in Med Chi malpractice insurance. He's vetoed the overwhelmingly passed bill from the legislature because it erases the 30-year exemption for HMOs from the state 2% insurance premium tax.
Instead of defending trial lawyers, here's a new tactic for Democrats: Blame the Bush Economy.
The reason HMO premiums have gone up is that insurance companies bought into the BS line from our administration that the economy had "turned the corner". MedChi's Exec. Dir. Michael Preston stated in his testimony last week that the stock market's flatness over the past year has nothing to do with the increase in rates since the majority of their investments are in bonds, including T-bills. However, the Fed's need to lower interest rates dramatically has pushed the yield on these bonds down slightly, although not much more significantly than the rate of decline during the Clinton years. The difference is that during the Clinton years, insurance companies were not forced to go with low-yield bonds as the basis of their portfolios, ans subsequently they saw regular double-digit returns. Now, the best MedChi can hope for is the meager 4.5% yield on T-bills. That has to be taken into account.
Furthermore, let's take a look at states that have passed the kind of restrictions on malpractice claims that the insurers are pushing for. California has, since the Medical Injury Compensation Reform Act 1975, had significant caps on medical malpractice claims. However, those caps have had almost no effect whatsoever on malpractice insurance rates.
Blame it on the Bush economy. Blame it on the Bush economy over and over and over again until it reminds you of the repetitiveness of the phrase "flip-flop" during the recent election.
Blame the lawyers.
High HMO premiums? High malpractice premiums for docs? Blame the lawyers suing on behalf of patients who have been the victim of medical malpractice.
High drug costs? Blame the laywers for suing on behalf of class-action plaintiffs who have taken these drugs under the assumption that due diligence was done by the companies and FDA to ensure their safety.
Ted Olsen is on Hardball right now blaming the lawyers at the Justice Dept. for the memo in August 2002 suggesting that various "inhumane" torture methods would be fine when used on detainees who were accused of serious terrorist actions. According to the former Bush Administration Solicitor General, Gonzales is the victim of subordinates who gave bad legal advice which was then passed on to the President. When asked whether Gonzales is simply a "messenger boy" who does nothing but pass on others' opinions as his counsel to the President, Olsen ducks the question.
On the malpractice insurance front, we've got a fight on our hands right now in Maryland where the Governor is blaming lawyers and juries for the 30%+ increase in Med Chi malpractice insurance. He's vetoed the overwhelmingly passed bill from the legislature because it erases the 30-year exemption for HMOs from the state 2% insurance premium tax.
Instead of defending trial lawyers, here's a new tactic for Democrats: Blame the Bush Economy.
The reason HMO premiums have gone up is that insurance companies bought into the BS line from our administration that the economy had "turned the corner". MedChi's Exec. Dir. Michael Preston stated in his testimony last week that the stock market's flatness over the past year has nothing to do with the increase in rates since the majority of their investments are in bonds, including T-bills. However, the Fed's need to lower interest rates dramatically has pushed the yield on these bonds down slightly, although not much more significantly than the rate of decline during the Clinton years. The difference is that during the Clinton years, insurance companies were not forced to go with low-yield bonds as the basis of their portfolios, ans subsequently they saw regular double-digit returns. Now, the best MedChi can hope for is the meager 4.5% yield on T-bills. That has to be taken into account.
Furthermore, let's take a look at states that have passed the kind of restrictions on malpractice claims that the insurers are pushing for. California has, since the Medical Injury Compensation Reform Act 1975, had significant caps on medical malpractice claims. However, those caps have had almost no effect whatsoever on malpractice insurance rates.
Blame it on the Bush economy. Blame it on the Bush economy over and over and over again until it reminds you of the repetitiveness of the phrase "flip-flop" during the recent election.
Docciavelli 7:42 PM