Tort is a system for compensating wrongs and harm done by one party to another's person, property or other protected interests. However here in the US we seem to have taken it to a point where it is harming the common person instead of helping her or him. The only way one can control costs is to reduce tort litigation or damages. Take for instance healthcare...
If one OB&GYN in Long Island pays $196,642 a year for insurance, how much should he charge the patients to cover his costs and make a living? In New York State, the Medical Liability Mutual Insurance Company has paid out more than $79 million in 75 of the 420 claims filed against obstetrician-gynecologists since 1975. Many doctors are forced to practice "defensive medicine”, ordering more tests to make sure they are not sued. This raises costs to a higher level. On the other hand, the most reliable estimates peg the costs of malpractice litigation at 2 percent of overall health care costs. Where then is the difference? Are the Insurance companies reaping the profits or is there mismanagement at the hospitals? UnitedHealth Group Inc. CEO Dr. William McGuire has accumulated stock options worth an estimated $1.6 billion, and over 5 years has accumulated around For what?? The present CEO Stephen J. Hemsley has a total Compensation of 3,241,042.00.
In a recent speech, President Obama said, “I will not permit reform to be postponed or imperiled by the usual ideological diversions.” Does he have the capacity to actually introduce reform? How is that possible when his lawyer brethren are dictate Tort reform???
Thursday, September 10, 2009
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