Posted On: August 25, 2008, 3:12 pm CDT

Posted By: Rusty

There was an interesting editorial in the NY Post today about this and it pointed up the problems that result from capping rates. Essentially, it said what thinking people already know: that if you take the profit out of a product, the seller will stop selling it (and put its capital elsewhere). So, we are likely to see med-mal insurers exiting the marketplace and I wonder what good that will do anybody. I can understand the attempt to put a temporary solution in place, but until there is some meaningful tort reform in New York State, this problem will just keep recurring. However, don't bet on the state legislature acting on that issue soon because, as the editorial goes on,(it happens that) the Assembly leader is of counsel to the largest plaintiff law firm in the state.

It always seems that the insurance industry becomes the convenient scapegoat for certain social issues while politicians don't seem to see (or want to see) the real picture adn do something about it.

From what I have read, many med-mal cases involve birth defects that were likely caused naturally and not by anything the physisian did, but settlements are still awarded anyway. And, yes, there is lax "policing" of doctors who are not performing well, too, so the solution to the problem involves many facets, all of which need implementation.

Finally, I have to ask, what happens when no OB-GYNs will deliver babies in NY anymore either because they can't get med-mal insurance, or can't afford the premiums due to health insurance industry reimbursements or they just move away or retire? I guess patients will have to seek treatment elsewhere.

All of this points to the fact that despite band-aids (no pun intended) something permanent has to be done now.