Yeah, That's What I Thought

Apparently, fewer medical malpractice payouts don't necessarily mean lower insurance rates. At least not here in Illinois.

Medical malpractice payouts have fallen 10% at the state's largest
physician insurer, but executives don't appear ready to cut doctors' insurance
premiums yet.

ISMIE Mutual Insurance Co. paid out $150.4 million to cover medical
malpractice claims in 2004, down 10% from 2003. Premiums charged to doctors
exceeded that payout by $270.1 million, the insurer's March 1 annual filing with
the Illinois Department of Insurance shows. The surplus set aside to cover
unexpected losses also grew 5.3% to $212.5 million.

And another good use for the extra cash:

CEO Alexander Lerner's 2004 compensation rose to $947,793, up 6.7% from 2003.

But surely the doctors, forever the victims of malpractice suits, got a break too, right? Well...no.

Premiums, meanwhile, are up: ISMIE raised doctors' rates 7.4% in 2004 and
35.2% in 2003.

Well, I agree with the president, we must combat the greed of people injured in the medical system to stem this crisis. After all, payouts to these disfigured (or dead) losers is really cutting into profits.

Thanks to Rich Miller for the pointer.