"Skyrocketing insurance premiums are debilitating our Nation's health care delivery system and liability insurers are either leaving the market or raising rates to excessive levels"

Rising insurance premiums significantly strain the foundations of the American health care system, affecting both providers and patients. When insurance costs escalate rapidly, hospitals, clinics, and private practices face greater operational expenses. These heightened costs often have a cascading effect, resulting in increased charges to patients, restricted services, and, in some cases, providers being forced out of business altogether. The stress on budgets for hospitals and individual practitioners hinders their ability to invest in modern equipment, staff training, and improved facilities, which can degrade the overall quality of care.

As insurance companies perceive greater financial risk or lower profitability within the healthcare sector, some may withdraw from the market entirely. Reduced insurer participation diminishes competition, which further drives up premiums, leaving providers with fewer options and even steeper prices. Those companies that remain may compensate for heightened risks and legal liabilities by dramatically raising their rates, making insurance coverage prohibitively expensive. This not only affects doctors and hospitals who must carry malpractice or liability insurance but also ordinary citizens who see these costs reflected in their medical bills, insurance policies, or taxes supporting public health systems.

The increase in premiums often stems from the threat of lawsuits and high settlements in medical malpractice cases, prompting insurance companies to protect themselves with higher rates. For many medical professionals, this environment creates uncertainty and discourages new practitioners from entering high-risk specialties or underserved areas, deepening healthcare disparities. Some may even consider leaving the profession due to an untenable financial burden, which exacerbates doctor shortages and limits patient access to timely care.

With insurers leaving the field or becoming too costly, the entire healthcare system faces instability. Essential healthcare services may become inaccessible in certain regions, and patients may delay or forego necessary treatments. Such disruption further exacerbates preexisting challenges in delivering quality care, ultimately undermining public health and trust in the nation’s healthcare infrastructure.