North Carolina’s largest medical malpractice insurer saw its 2005 profits from premiums increase by 224 percent, according to a recent article. During the same year the combined pay for the top two executives at the company approached $1.5 Million. Meanwhile, the premiums Medical Mutual has charged its physician-insureds have risen by a combined average of about 45 percent over the last five years.
Medical Mutual’s profit from premiums rose from about $2.1 million in 2004 to more than $6.7 million in 2005. Triangle Business Journal, 6/18/2006
The new profit figures from Medical Mutual do not support claims of a ‘medical malpractice crisis’. Nor does the news from self-insured University of North Carolina Healthcare that it is reportedly expecting an 8 percent decrease in malpractice costs for fiscal year 2007, following a 2 percent decline this year, help so-called tort reformers paint a convincing picture of an out of control system civil justice. These reports seem to be part of a larger trend around the country.