NEW YORK, October 27, 2011-/PRNewswire-USNewswire/-author of California insurance regulation reform law testified in New York City today that insurance rate regulation is key to preventing medical malpractice insurer price gouging doctors and preserving consumer access to health care. "
The voters of California enacting insurance reform proposition 103 in 1988. The law requires "approval" the regulation of all property-casualty and insurance business, requires insurers to justify and obtain approval from State regulators before rate changes may apply.
In the first three years after the insurance reform is approved, California medical malpractice drop 20% and then stable, even as the premium across the country continue to fluctuate. The average increase in national medical malpractice premiums is 127%, five times the rate of 24% increase in California between 1988, when the insurance legislation in force, and 2009.
"California medical malpractice insurance industry is the price-gouging doctors to profit while blaming increased premiums on patient injury. Only the insurance reform proposition 103 judge gives State regulators the power to force insurers to open their books and retreated at the level of exaggeration. New York doctors won't see savings of malpractice insurance without the same tough regulatory assumptions, "said Harvey Rosenfield, author of the insurance law reform regulation of California proposition 103, and founder of the nonprofit, nonpartisan consumer watchdog.
Consumer watchdog has been using the process that created by the intervenor proposition 103 to prevent $ 66 million of the increase in the level permitted for doctors and other health care providers since 2003. The system encourages community participation with intervenor allows community members to challenge the rising level of exaggeration.
