Posted by meaghano | Posted in Personal Injury News
A briefing paper by the Economic Policy Institute, relying heavily on data from the Congressional Budget Office, draws some interesting conclusions about the “costs” of litigation in the U.S.:
1. The reported “tort cost” is greatly exaggerated, because it takes into account the transfer of money from the injurer to the victim, which is not accurately classified as a cost to society;
2. The number of tort cases in the United States has declined over the past dozen years; and
3. There is no evidence that litigation influences the cost of health care. In fact, the Congressional Budget Office estimated that even a 30% drop in medical malpractice insurance premiums would only reduce the cost of health care by a fraction of one percent.
The full text of the report is available on the Economic Policy Institute’s website.
