LOS ANGELES (AP) — Medical malpractice insurance rates might be too high because some insurers are spending as little as two or three percent of premiums to pay out claims, according to the California Department of Insurance.
Insurance Commissioner Dave Jones said in a statement last week that insurers should reduce rates paid by doctors, surgeons, clinics, and health providers while his staff scrutinizes the numbers.
"We have found that recent loss ratios — the percentage of every premium dollar the insurer spends on claims — of many medical malpractice insurers are low," said Jones. "Low loss ratios are one indication that premiums may be too high."
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