"New Study Leads State Attorneys General and Insurance Commissioner to Strongly Challenge Insurance Industry's Price-Gouging of Doctors"

"New Study Leads State Attorneys General and Insurance Commissioner to Strongly Challenge Insurance Industry's Price-Gouging of Doctors"

7/7/2005 1:29:00 PM

To: National Desk, Health Reporter

Contact: Joanne Doroshow of the Center for Justice & Democracy, 212-267-2801; Web: http://centerjd.org

NEW YORK, July 7 /U.S. Newswire/ -- In response to a new study released today by several national consumer organizations titled Falling Claims and Rising Premiums in the Medical Malpractice Insurance Industry, two state Attorneys General and one state Insurance Commissioner responded with strong statements condemning the actions by insurers to dramatically raise insurance rates for doctors while claims are dropping.

'The numbers underscore the need for much tougher, more aggressive oversight to prevent and punish profiteering,' Connecticut Attorney General Richard Blumenthal said. 'Federal and state regulators should thoroughly scrutinize recent rate increases and take appropriate corrective action. Affordable medical malpractice insurance is critical to public health. Expensive insurance rates become a matter of life and death when they drive doctors out of business - as is happening in Connecticut and nationwide. Insurance company greed can be hazardous to our health.'

'The data in the Annual Statements filed under oath with state insurance departments, which this Report discloses, call into question much of what the medical malpractice insurance industry has been saying publicly during the past several years,' said Missouri Attorney General Jay Nixon. 'There is no excuse for malpractice insurers doubling their rates while their claims payments decrease.'

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