DODGING A PROBLEM RATHER THAN SOLVING IT

But better than nothing, I suppose

The first state subsidies to help doctors worst hit by rising medical malpractice premiums are being distributed, the New Jersey Department of Banking and Insurance said Monday. Payments of nearly $11,000 each are being made to about 1,200 medical specialists: neurosurgeons, obstetricians and radiologists who read mammograms. The subsidy payments are being made under a 2004 law, the New Jersey Medical Care Access and Responsibility and Patients First Act, intended to ensure there are enough of certain specialists to treat patients in the state.

The three specialist groups are among those that took the worst hit when malpractice insurance premiums began spiking a few years ago. Doctors' groups say many specialists retired or moved to states with lower malpractice premiums to avoid high insurance costs in New Jersey.

Donald Bryan, acting commissioner of banking and insurance, said in a prepared statement that the subsidy is a key component of state legislation to address cost and availability of medical malpractice insurance. The payments are the first in a three-year program, he said. The subsidies come from the state's Medical Malpractice Liability Insurance Premium Assistance Fund. It is funded by $75-a-year fees paid by practicing doctors, dentists, chiropractors, podiatrists, optometrists and attorneys, as well as a $3-per-employee annual fee collected from most businesses.

According to the department, 65 percent of money in the fund goes for premium subsidies. The rest is split among the New Jersey FamilyCare health insurance program, hospital charity care reimbursements and reimbursement of student loans for obstetricians and gynecologists who agree to practice in New Jersey.

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For greatest efficiency, lowest cost and maximum choice, ALL hospitals and health insurance schemes should be privately owned and run -- with government-paid vouchers for the very poor and minimal regulation. Both Australia and Sweden have large private sector health systems with government reimbursement for privately-provided services so can a purely private system with some level of government reimbursement or insurance for the poor be so hard to do?

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