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Med-mal insurers and antitrust: the costs of payback



"House Democrats are planning a vote next week on legislation that would repeal the McCarran-Ferguson Act anti-trust laws exemption for health care and medical malpractice insurers." Insurers have warned that without a legal safe harbor for exchanging some information within the industry about past claims patterns, some insurers will be underwriting in the dark and will be more likely unknowingly to write coverage for bad risks. In the case of medical malpractice insurance, that means they'll be more likely to offer unduly cheap and abundant coverage to high-risk sorts of provider that an information-sharing model would have given them fair warning about. That will encourage there to be more of those sorts of high-risk providers.

One wonders whether the Litigation Lobby has not considered that possibility at all, or finds it well worth risking for the sake of getting its payback.

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Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.