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MAPQUEST US!

3461-C L'ville-Suwanee Rd
Suwanee, Georgia  30024 Tel. (678) 546-7890
Fax. (678-546-7372

Click Here to meet our associates and view their resumes
at our sister site, www.advocatefinancialadvisors.com.

 Blog 
Monday, 25 October 2010

October 25, 2010

More Lawyers, Fewer Doctors and Much Worse Health Care

Out-of-control medical liability lawsuits have triggered the closure of medical facilities and caused a mass exodus of high-risk specialists such as obstetricians and neurosurgeons from Pennsylvania and other overlawyered states.  Patients ultimately suffer, as they face higher prices and fewer options for care, says Lawrence J. McQuillan, director of Business and Economic Studies at the Pacific Research Institute.

  • One of eight doctors is hit with a lawsuit each year alleging malpractice.
  • The American Medical Association reports that 42 percent of doctors have been sued at least once and 20 percent at least twice.

Most lawsuits are dismissed or result in a judgment for the doctor.  But doctors lose even when they win since the average defense cost per trial approaches $100,000.

Doctors don't shoulder these costs on their own.  Patients pay higher health care costs and insurance premiums.  In addition, they might be subjected to unnecessary and costly tests because wary doctors view them as potential litigants.

  • More than nine of 10 doctors admit to practicing defensive medicine.
  • Younger doctors are more likely to do so than older doctors because protecting oneself against litigation has become a standard part of medical training.
  • Defensive medicine also drives up health care costs, adding $191 billion each year to the nation's health care bill.

Stanford University economist Daniel P. Kessler and Brookings Institution scholar Mark McClellan found that a package of simple reforms, including a cap on noneconomic damage awards, would reduce annual medical expenditures by 5 percent to 9 percent without adverse effects on patients.

Source: Lawrence J. McQuillan, "More Lawyers, Fewer Doctors and Much Worse Health Care," Washington Examiner, October 20, 2010.

For text:

http://www.washingtonexaminer.com/opinion/columns/OpEd-Contributor/More-lawyers_-fewer-doctors_-and-much-worse-health-care-1274757-105364433.html

Posted by: Keith Nabb AT 08:44 am   |  Permalink   |  Email
Thursday, 21 October 2010

ObamaCare Will Clog System

The new health care law mandates and extends the kind of insurance that breeds overuse, thereby driving up costs and premiums.  The medical system is about to be overwhelmed because there are no disincentives for overuse, says Marc Siegel, an associate professor of medicine and medical director of Doctor Radio at NYU Langone Medical Center.

  • Where will patients with new Medicaid cards who can't find a doctor go? Emergency rooms.
  • The escalating costs of these ER visits (necessary and unnecessary) will be transferred directly to the American public, both in the form of taxes as well as escalating insurance premiums.
  • The new Independent Payment Advisory Board -- established by the health reform law to "recommend proposals to limit Medicare spending growth" -- will advise Medicare that some treatments are more essential and more cost-effective than others; value judgments inevitably will have to be made, reducing options for physicians.
  • More expensive chemotherapies and cardiac stents or transplants, for instance, will have a tougher time being approved, as is already the case in Canada.

None of this is terribly surprising.  Imagine if your car insurance covered every scratch or dent.  Wouldn't you expect your premiums to rise to meet the expanded coverage?  And wouldn't you expect your auto repair shops to become clogged with cars that didn't really need to be repaired, competing for time and space with other cars with broken transmissions or burnt-out motors?

If we want lower insurance premiums, we will need to return to a system that favors high deductible, high copay, catastrophic-type insurance with a built-in disincentive for overuse.  Patients could pay for office visits from health savings accounts or other flexible spending tax shelters, says Siegel.

Source: Marc Siegel, "ObamaCare Will Clog System," USA Today, October 19, 2010.

For text:

http://www.usatoday.com/news/opinion/forum/2010-10-19-column19_ST_N.htm

Posted by: Keith Nabb AT 09:05 am   |  Permalink   |  Email
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Advocate Financial Group, LLC, formerly Affordable Health & Life Plans, Inc and Frazier Cain, LLC.

3461-C Lawrenceville-Suwanee Rd, Suwanee, Georgia  30024
(678) 546-7890 | FAX (678) 546-7372

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