False Accounting: The Foundation for Taxpayer and Consumer Rights

December 29, 2005 False Accounting: The Foundation for Taxpayer and Consumer Rights This report investigates the problem of high medical malpractice rates. It concludes that between 1986 and 1994 medical malpractice insurance firms set rates based on accounting practices that projected losses of $39.6 billion, rather than actual claims paid of $26.7 billion. This report shows that the firms reported the projected losses to state regulators as actual losses. These figures were used as justification for malpractice rate hikes . . .