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Who Pays? The Incidence of High Malpractice Premiums


  • Pauly Mark

    () (The Wharton School, University of Pennsylvania)

  • Thompson Christy

    () (University of Minnesota)

  • Abbott Thomas

    () (Medstat, Inc.)

  • Margolis James

    () (Medical Group Management Association)

  • Sage William

    () (University of Texas-Austin)


This paper uses data from physician group practice to examine the relationship between malpractice premium levels and physician net incomes for the years 1994, 1998, and 2002, a period in which malpractice premiums rose rapidly. We find, as did work covering earlier periods of premium growth, that physician net incomes were not reduced by high or rising premiums, and that gross practice revenues were higher when premiums were higher. There is evidence that this forward shifting of costs was associated more with higher quantities of services than with higher unit fees.

Suggested Citation

  • Pauly Mark & Thompson Christy & Abbott Thomas & Margolis James & Sage William, 2006. "Who Pays? The Incidence of High Malpractice Premiums," Forum for Health Economics & Policy, De Gruyter, vol. 9(1), pages 1-19, December.
  • Handle: RePEc:bpj:fhecpo:v:9:y:2006:i:1:n:2

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    Cited by:

    1. Lakdawalla, Darius N. & Seabury, Seth A., 2012. "The welfare effects of medical malpractice liability," International Review of Law and Economics, Elsevier, vol. 32(4), pages 356-369.

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