Friday, December 14, 2007

The Overstated Malpractice "Crisis"--Maryland Wants its Money Back

The Washington Post reports today that Maryland is demanding repayment of $84 million from a physician insurer because--here's some news--the medical malpractice "crisis" wasn't actually a crisis.

Back in 2004, then Gov. Ehrlic convened a special session to deal with what he termed the malpractice crisis. Maryland began to provide subsidies.

The insurer recently announced that it had a surplus and would pay some of the money back to the State and the rest to doctors in the form of a rebate for next year's coverage. State regulators weren't thrilled and instead demanded repayment of the $84 million which had been raised by a surcharge on HMO subscribers.

It's nice to see a state government stand firm and demand return of public money. It might be interesting to take a look back at who was fanning the flames on the non-crisis.

David F. Sugerman
Paul & Sugerman, PC

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