The Washington Post reports today that Maryland is demanding repayment of $84 million from a physician insurer because–here’s some news–the medical malpractice “crisis” wasn’t actually a crisis.
Back in 2004, then Gov. Ehrlic convened a special session to deal with what he termed the malpractice crisis. Maryland began to provide subsidies.
The insurer recently announced that it had a surplus and would pay some of the money back to the State and the rest to doctors in the form of a rebate for next year’s coverage. State regulators weren’t thrilled and instead demanded repayment of the $84 million which had been raised by a surcharge on HMO subscribers.
It’s nice to see a state government stand firm and demand return of public money. It might be interesting to take a look back at who was fanning the flames on the non-crisis.
David F. Sugerman