I’ve blogged before aboot how red states like Texas are an example of the world the works, compare to blue states like California and New York are examples of the world that fails. Okay, so that wasn’t me as much as it Newt Gingrich saying it and me just adding my opinion to, but I still have another example of this. Two words you may have heard in the news recently: tort reform.
The President said he is going to set up “test programs” to see if tort reform would actually bring down health care costs and/or reform overall health care in this country. He doesn’t need a test program. He just needs to look at Texas where only two things come from – steers, and apparently 7,000 new doctors.
So sayeth Texas Magazine…
A 2008 study from the Perryman Group found that perhaps the most visible economic impact of the lawsuit reforms are the benefits experienced by Texans who have better access to high-quality healthcare. Doctors and hospitals are using their liability insurance savings to expand services and initiate innovative programs; those savings have allowed Texas hospitals to expand charity care by 24 percent.
The total impact of tort reforms implemented since 1995 includes gains of $112.5 billion in spending each year as well as almost 499,900 jobs in the state. The fiscal stimulus to the state from judicial reforms is almost a $2.6 billion per year increase in state revenue. In addition, these reforms are responsible for approximately 430,000 individuals having health insurance than would otherwise, and there has been an increase in the number of doctors, particularly in regions which have been facing severe shortages.
Because of the reforms Texas Medical Liability Trust, one of the largest malpractice insurance companies in the state, has cut its premiums by 35%, saving doctors some $217 million over four years. Since reforms bring competition to the malpractice insurance industry in Texas, we have benefited with over 30 new insurance companies competing for business. This drives all our rates down.
The stars at night are big and bright…