Depending on how health care services are delivered, medical malpractice insurance premiums will fluctuate with those trends.
Recently, an interesting report was released to the public dealing with U.S. medical malpractice insurance, and the fact that it was tied directly to the structure of health care delivery. This should be of interest to many Americans, as very few of us escape dealing with a doctor over the course of our lives. Evidently, from the research conducted, the future health and success of the medical malpractice insurance market depends on how health care will be delivered.
Maybe that’s not so far-fetched come to think of it. Everyone knows health care is in turmoil and trying to pay for medical care can just about bankrupt anyone who gets a bill and tries to pay it.
The Patient Protection & Affordable Care Act will favor physicians operating in an Accountable Care Organization (ACO). This move is anticipated to have a significant impact on the medical malpractice insurance market immediately and likely in the long-term too. This is largely because hospitals are more aggressively trying to absorb independent solo or smaller doctor’s practices and their patient base with an eye on creating bigger ACOs for themselves.
The bigger the ACO, the more money there is to be made. Along with that though comes the sure knowledge that the bigger an organization, the greater the chance for screw-ups and medical malpractice lawsuits. That’s a virtual given as the bigger businesses get, the less they seem to be able to communicate properly or accurately. Once again, patient safety and welfare will be at risk.
How will this affect the medical malpractice insurance market? Larger malpractice insurance companies should survive, as they have the customer base to support change, but smaller insurers may go the way of ghost towns. If that does happen, look for the larger companies to acquire the smaller ones. Bigger insurance companies may offer lower prices on health insurance policies or they may not because they would have a market monopoly and can do what they please.
Changes are necessary for the affordability of health care in the United States. However, change is not always welcome to patients or doctors for that matter. No matter what does happen though, medical malpractice insurers will always be around. It’s too lucrative a market to miss out on, which just goes to point out that when it comes to insurance companies, their bottom line is making money and not caring for their customers.
If they did care for their customers, they would not work tirelessly to reduce, diminish or deny valid claims by finding obscure loopholes in policies. If customers truly understood what really drives an insurance company, meaning their motive to be in business, they would be rightfully horrified. What will the future bring? Who knows, but if you need insurance, get it now while you can as the prices are somewhat competitive.
Charlie Donahue is a New Hampshire personal injury lawyer located in Keene. Donahue handles injury cases in New Hampshire and across the United States. To learn more about New Hampshire injury attorney, Charlie Donahue, visit Donahuelawfirm.com.
