How Tort Reform Can Raise Health Care Costs

Texas has been a magnet for doctors since they enacted tort reform a few years ago. (See Doctor's Flock to Texas After Tort Reform from the Wall St Journal).

The result? Insurance premiums have nearly doubled.

From the Austin American Statesman:

Insurance premiums rose 91.6 percent in Texas

By Mary Ann Roser | Tuesday, September 15, 2009, 12:48 PM















*Increased spending on health care. The report says that nearly half of Americans have chronic conditions, with diabetes alone costing more than $174 billion annually.

*Lack of regulation of the insurance industry. Insurance companies can charge more, plus refuse coverage to people based on a variety of factors, including dropping or denying people because of illness, the report says.

*A lack of competition in the insurance market. The report says in some areas, too many companies have merged, leaving consumers with too little choice. The report claims health care reform will provide more options.

*The "hidden health tax," in which people with insurance help cover the uninsured. Last year, the portion that insurance companies charged families in insurance premiums to cover people who did not have insurance was $1,017.

Pollack said he believes insured people would pay less to cover uninsured people under health care reform.

Link to the study by Families USA (pdf).

Great! You’ve successfully signed up.

Welcome back! You've successfully signed in.

You've successfully subscribed to Dollars & Sense.

Success! Check your email for magic link to sign-in.

Success! Your billing info has been updated.

Your billing was not updated.