2014

Connecticut Trial Lawyers Ask Doctors to Question Insurer's Excess Profits

    HARTFORD, Conn., Nov. 8 /PRNewswire-USNewswire/ -- The Connecticut
 Trial Lawyers Association (CTLA) today released a new actuarial analysis
 revealing that, for several years Connecticut Medical Insurance Company
 (CMIC) has been charging doctors excessive premiums causing their overhead
 to soar and, needlessly contributing to the growing cost of Connecticut
 health care.
 
     The analysis, prepared by AIS Risk Consultants, a New Jersey
 independent actuarial firm, is based on the most recent financial reports
 filed by CMIC with state regulators.
 
     The analysis shows, that from January 1, 2004 through June 2007, CMIC
 reported net income after taxes of $51.4 million. These profits were over
 40% of the net premium CMIC earned from the premiums charged doctors during
 that time period.
 
     "It's long past time for Connecticut doctors to put aside their
 distrust of trial lawyers and conduct their own review of CMIC's excessive
 profits," said Joseph Mirrione, CTLA President. "At least one company
 (ProMutual) has chosen to seek a reduction in the premiums it charges
 doctors. In marked contrast, CMIC's refusal to lower its inflated rates has
 resulted in Connecticut physicians funding the excessive and growing
 profits of CMIC -- from $7.6 million in 2004, to $10.9 million in 2005, and
 $24.5 million in 2006."
 
     "This behavior does nothing more than add to the already inflated
 overhead doctors must bear and needlessly drives up the cost of Connecticut
 health care," Mirrione continued.
 
     The analysis also includes details of a decline in CMIC's unpaid losses
 and loss adjustment expenses (legal and claim adjustment expenses) which
 indicates that the reserves the company has established are inflated and
 were much more than sufficient to pay actual losses and expenses.
 
     A copy of this press release and link to actuarial report can be found
 at the following address:
 http://www.cttriallawyers.org/questioninsuranceprofits
 
     The Connecticut Trial Lawyers Association is a nonprofit association
 dedicated to creating and maintaining a more just society by preserving
 individuals' rights and ensuring that the Civil Justice system works for
 all people.
 
 
 
 

SOURCE Connecticut Trial Lawyers Association

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