Protecting and Promoting the Rights of those Injured by Medical Malpractice
A lot has happened in the United States in the last five years, and much of it has happened in New York. As the economic capital of the nation, New York has been the scene of much of the economic upheaval that has so far defined the new millennium. After the longest sustained period of economic expansion in U.S. history, the overnight collapse of the technology boom in April 2000 was the first sign that the charmed success of the 1990s was slipping. This was followed quickly by the collapse of corporate accountability in hundreds of fly-by-night Internet startups, and also in prominent companies, banks and accounting firms across America.
As revelations of cooked books, wholesale embezzlement and consumer fraud surfaced as standard fare in corporate America, the steadiness of the U.S. economy quickly faltered, ushering in the first recession in nine years. Many of the heroes of 1990s Wall Street were hiring defense attorneys as the summer of 2000 began, preparing for pending appearances in the courts of New York to account for their active roles in picking retirement funds clean, perpetrating consumer fraud, and abetting embezzlement and the rip-offs of millions of consumers and investors.
Then came September 11 th, 2001. Determining the true cost of that day is an impossible task, especially when we reflect on the victims of the attacks. The human loss becomes incalculable when we recognize that many of the day's leading economic minds and architects of commerce, those who labored directly to strengthen and guide the U.S. economy, perished in the Twin Towers.
On a monetary level, the direct costs of 9/11 were some $40 billion, according to insurance industry estimates. As the reluctant underwriters of these difficult times, insurance companies and their investment portfolios have borne the brunt of the losses resulting from recession, economic volatility and the terrible toll of death and destruction that followed 9/11. But as trying as these times have been for many insurance companies, don't plan on any funerals for the insurance industry just yet. In fact, big insurance has found an easy way to survive and even thrive in post-9/11 America. All they have to do is strip Americans of their basic legal rights, and as they've recently discovered, that's not so hard to do. Insurance Companies and how they protect their profits
As the wealthiest industry in the United States, the insurance industry is also the most pervasive. Insurance companies are the nation's principal investors in the stock market, corporations, banks and financial institutions. Their executives sit on the boards of America's leading companies, and their profits fuel Wall Street investments. And most importantly, they contribute heavily to the coffers of political campaigns sympathetic to their views and goals.
In boom times, insurance companies always stand to gain the most. During a soft economy, full of scandal, low job-growth, falling stocks, lower interest rates and fears of more catastrophes like 9/11, their profits suffer. When the economy works against them, insurance companies look for any available means to save money. The easiest cost-saver is the American consumer, and by raising premiums of policyholders while working to deter their rights to pursue just compensation through the legal system, the insurance industry is able to maintain its extravagant profit margin. Exercising their Power: Legal victories of the Insurance Industry
Is human life worth less under a Republican administration? Recent political and legal victories of the insurance industry give every indication that this is so.
The tradition of insurance companies applying political clout and pressure to ensure that state and federal laws work for them in personal injury cases is nothing new. What is new is the unprecedented string of high-level successes they've achieved in recent years in curbing the rights of injured victims of personal injury and medical malpractice. With the open support of a pro-big business President in the White House, a Republican Congress, and a conservative Supreme Court, the insurance industries have been in an excellent position to press ahead with their self-serving agenda, and they've taken advantage of the times.
One of the biggest political and legal victories in the history of the insurance industry occurred very recently. On June 22nd, 2004 (see Supreme Court Limits HMO Malpractice Suits, by Julie Davidow) the U.S. Supreme Court ruled that patients have very limited rights in suing employer-sponsored health plans when their HMOs refuse to pay for recommended medical treatment. The ruling also limits the liability of negligent doctors and healthcare professionals in medical malpractice cases.
As much of an impact as that ruling has on the legal rights of medical malpractice victims, its arrival wasn't much of a surprise. President Bush has been a vocal advocate of medical malpractice reform throughout his first term, repeatedly calling on Congress to make the pursuit ofpunitive damages in medical malpractice cases a "non-option." Congress has put together several bills to establish federal laws severely limiting non-medical damages that medical malpractice victims can pursue. These bills have been narrowly defeated, but intense lobbying by the insurance companies ensures that new attempts are on the horizon.
On the state level, the insurance companies have induced many state legislatures to put caps on punitive damages that medical malpractice victims can obtain. For instance, in many states, someone who loses the ability to work for life due to a doctor's error can receive a maximum of 250,000 or less for pain and suffering. More subtle efforts by the insurance companies to limit the rights of medical malpractice victims have included heightening the burden of proof of medical malpractice, tightening the statutes of limitations on cases, and maintaining tighter regulation of attorney fees (again, to dissuade quality attorneys from taking on medical malpractice cases). "For Our Own Good"
According to the insurance industry, all of these new limitations on a medical malpractice victim's legal options are "for the good of the American consumer." By limiting the incentive and ability of "predatory" attorneys to pursue medical malpractice lawsuits, the insurance companies can charge doctors, surgeons and hospitals less to insure them. The medical establishment can then pass those savings on to the sick and injured, keeping the cost of quality medical treatment affordable. By taking trial attorneys out of the equation, quality healthcare costs would stabilize for everyone.
What's missing from this nice little equation is the fate of the hundreds of thousands of patients injured by medical negligence and malpractice every year. While the insurance company would like the public to believe that doctors are infallible and all malpractice cases involve fraud or natural weakness on the part of the victim, the facts show that an average of 80,000 deaths result each year from preventable medical errors. Hundreds of thousands more suffer debilitating injuries that will forever alter their quality and enjoyment of life. Under the insurance industry's ideal plan, is it simply the luck of the draw for these folks? Should Americans surrender their rights at the hospital doors, and simply pray their doctor had a good night's sleep?
This appears to be the ultimate goal of the insurance industry. By refusing to hold incompetent doctors and hospitals accountable for higher standards of care, they ignore the root of the problem. Instead, they choose the path of less resistance, steamrolling the rights of medical malpractice victims to obtain quality legal counsel and pursue justice. By working within the system to make the process of justice too arduous and complex to pursue, they believe they can drive true justice into extinction.
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