When Insurance Companies Win, Consumers Lose
An article from the October issue of the New England Journal of Medicine finds that tort reform does not have the impact on emergency room medicine that supporters guaranteed it would.
Tort reform is an idea pushed by insurance companies that claims medical malpractice lawsuits cause the costs of medical care to increase, cause doctors to stop practicing medicine, and cause a trickle-down effect that impacts every person in our country. Most of the myths of tort reform have been debunked, but insurance companies have spent tens of millions of dollars promulgating this theory, and it still resonates with many people. The myth that this study sought to confirm or reject was that doctors live in fear of lawsuits, so they order excessive tests to rule out possible medical conditions; this increase in diagnostic testing leads to more charges to the insurance company, which, in turn, causes medical care to be more expensive.