ถถา๕hns have encountered the headwinds of inflation over the past five years in the prices they pay for food, energy, housing and a range of other items, especially health insurance.
What is the cause of insurance inflation? A judicial system run amok.
Lawsuits frivolously filed, coupled with extravagant awards for damages, have combined to increase costs. Unscrupulous attorneys charging 30% contingency fees have lost this state an untold number of jobs while also serving to decrease the tax base by discouraging businesses from locating here.
The negative impact of predatory lawyers not abiding by the acceptable rules of judicial conduct is felt by the general public as well as those lawyers who do. The American Tort Reform Foundation described ถถา๕h as having the most unbalanced court system in America.
Much focus is on โnuclear verdicts,โ those granting excessive monetary awards that in no way reflect actual damages inflicted but are overly punitive. They place a special burden on citizens in the underserved communities who may no longer be able to afford insurance. They punish businesses as well as medical professionals who also find themselves unable to afford the premiums. Sometimes, closing down their companies is the only alternative.
Unimpeded rate rise hurts all Louisianians. It's a serious crisis that decreases the availability of health care in a state that already lacks access to maternal and primary care. Roughly half of our parishes are already without clinics.
The legal system is in need of an overhaul that stops excessive damage awards, adds guardrails to prevent jury manipulation, caps noneconomic damages, holds the bad actors accountable and thus provides justice for all.