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Rising healthcare costs and medical malpractice

I need help with the reasons that healthcare costs in the U.S. is increasing and its link with litigation and medical practitioners. The statement listed below needs to be expanded on.

"A big issue that divides the Democrats from the Republicans is whether it is a Gov't program vs. an Insurance program. It has to do with costs associated with either approach. One area that reduces if it is Gov't sponsored is litigation which has been very costly in our US system which greatly increases insurance rates for medical practitioners. Another issue is that Health Care costs have been risng at a rate of 12% per year while the GDP is rising at 2 - 3 % which shows that it's costs are way out of balance. "

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You may want to mention that there is some debate as to whether rising health care costs are indeed due to litigation. The Boston Globe (see reports that it may instead be due to insurers attempting to recapture profits lost in the declining market. Insurance companies in fact make a great deal of their income from investments - it ...