Lawsuits Can Affect Cost of Health Insurance

The cost of health insurance has risen dramatically in recent years for a number of different reasons. One of these reasons is often said to be the high cost of malpractice lawsuits, an issue that has been particularly contentious in Congress in recent years.

Last month, a study from the Congressional Budget Office predicted that reforming medical lawsuit procedures could reduce total U.S. healthcare spending by about 0.5 percent, which was said to be $11 billion in 2009. The CBO also said that such measures would reduce the federal budget deficit by about $54 billion over the next decade.

There is also concern in the healthcare industry that fear of lawsuits leads many doctors to order tests and other procedures that are not actually necessary.

An Associated Press poll found that 54 percent of voters support new rules that rein in lawsuits against doctors and hospitals, compared to 32 percent who oppose the idea. The poll also found that 59 percent believe their doctors have ordered unnecessary tests for them based on the fear of lawsuits.

It remains to be seen what the final set of healthcare reforms will look like, but one place to start bringing down the cost of insurance could involve the way medical lawsuits are currently handled.

ShareThis