HARTFORD, Conn., Nov. 8 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