Malpractice Insurance

Paper Summary:

This paper explains that, whereas other industries afflicted by high premiums have shifted some of this burden to the customer by increasing the fees charged, this is generally not an option for the LTC industry because the great majority of patients in nursing homes have their costs paid by federal Medicare and Medicaid programs. The author points out that the high costs of the litigious climate are causing some states, such as Florida and Texas, to implement damage award caps. The paper stresses that the goal of preventing abuse and increasing the standards of care in long-term facilities is being thwarted by a system that pits lawyers against nursing homes.

From the Paper:

"The long-term care homes were the most profitable sector in the late 1980s, Fletcher writes, but are now the least profitable for the insurance industry. Losses are so extreme in the nursing home sector that many carriers are refusing to insure long-term facilities. Fletcher mentions two states, Florida and Texas that are hit particularly hard by insurance carrier losses. At the root of these skyrocketing premiums is the different legal climate that has awarded large settlements to plaintiffs in suits against LTC facilities."

More papers on Malpractice Insurance:

• Argumentative Essay # 53872 : "Medical Malpractice and Tort Reform"
• Essay # 62095 : "Malpractice Caps"
• Research Paper # 46238 : "Health Insurance Fraud"

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