The real reason medical malpractice premiums have gone up is because insurance companies are trying to make up for losses caused by poor investment results over the last few years. Insurance companies make their money by collecting premiums, investing those premiums and then paying out as little as possible.
When interest rates are low and the stock market is not doing well there can be a shortfall in insurance company revenues. Their solution is to raise the premium rates and thereby maintain their profits. Actual payouts by the insurance companies have remained relatively constant.
Proponents of “tort reform” would cap non-economic damages that are the damages for pain and suffering, disability, and, in death cases, for loss of society. Yet non-economic damages are what truly balance the scales of justice for a personal injury victim.
For example, in a recent case, radiation technicians at a hospital carelessly miscalculated the radiation dose for a cancer patient receiving radiation therapy and caused horrific radiation burns to the patient that were extremely painful and disfiguring, and will be so for the rest of the person’s life. The person didn’t work so there was no wage loss and the medical expense recovery had to be paid back to the patient’s health insurance carrier.