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by ceejayoz 3331 days ago
https://prescriptions.blogs.nytimes.com/2009/08/31/would-tor...

> Q. But critics of the current system say that 10 to 15 percent of medical costs are due to medical malpractice.

> A. That’s wildly exaggerated. According to the actuarial consulting firm Towers Perrin, medical malpractice tort costs were $30.4 billion in 2007, the last year for which data are available. We have a more than a $2 trillion health care system. That puts litigation costs and malpractice insurance at 1 to 1.5 percent of total medical costs. That’s a rounding error. Liability isn’t even the tail on the cost dog. It’s the hair on the end of the tail.

Even at the 10-15% number, that's meaning the vast majority of costs still come from elsewhere.

1 comments

I'm referring to what are the out of pocket costs a physician pays in malpractice insurance -- the cost they pay, even if a lawsuit is not brought against them.

Not the cost of actual malpractice lawsuits

If there is at least a bit of competition in malpractice insurance "the out of pocket costs a physician pays in malpractice insurance -- the cost they pay, even if a lawsuit is not brought against them" and "the cost of actual malpractice lawsuits" should be fairly close on average.
And my quote states "malpractice insurance".

> That puts litigation costs and malpractice insurance at 1 to 1.5 percent of total medical costs.