Who Pays? The Incidence of High Malpractice Premiums

Who Pays? The Incidence of High Malpractice Premiums
This Pew-funded study, Published in Forum for Health Economics & Policy, examined the relationship between malpractice premium levels and physician net incomes for the years 1994, 1998, and 2002, a period in which malpractice premiums rose rapidly.

It found that in a large nationwide sample of group practices, higher malpractice premiums do not depress physician net incomes. Instead, by a combination of increasing prices and increasing quantity of (apparently) profitable outputs, the group practice physicians studied appear able and willing to offset the effect of higher premiums on their incomes.

Regardless of the form, physicians appear able to shift premiums forward whether premiums are increased by an adverse legal climate or for other more practice-specific reasons. They were equally able to do so in different time periods or in practices with heavy managed care presence.

America’s Overdose Crisis
America’s Overdose Crisis

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up
Quick View

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up
Composite image of modern city network communication concept

Learn the Basics of Broadband from Our Limited Series

Sign up for our four-week email course on Broadband Basics

Quick View

How does broadband internet reach our homes, phones, and tablets? What kind of infrastructure connects us all together? What are the major barriers to broadband access for American communities?

Pills illustration
Pills illustration

What Is Antibiotic Resistance—and How Can We Fight It?

Sign up for our four-week email series The Race Against Resistance.

Quick View

Antibiotic-resistant bacteria, also known as “superbugs,” are a major threat to modern medicine. But how does resistance work, and what can we do to slow the spread? Read personal stories, expert accounts, and more for the answers to those questions in our four-week email series: Slowing Superbugs.