Double-digit liability rate hikes slam internal medicine, obstetrics, general surgery

The insurance market is not likely to improve in the near future.

By Tanya Albert, AMNews staff. Oct. 28, 2002.

Physicians looking to flee double-digit medical liability insurance rate increases don't have many places to go.

Alabama and Alaska were the only states where insurers didn't raise rates for internists, general surgeons and obstetricians-gynecologists between July 2001 and July 2002, according to a new survey by the Medical Liability Monitor. Some general surgeons in Alabama even saw a 6% decrease in rates.

A few doctors in other areas saw some decreases, too. Among them: An Illinois company reduced general surgeons' rates by 8.6% in almost all counties outside Chicago. A Nevada company reduced general surgeons' rates by 6.6% in every county except Clark, home to Las Vegas.

And California wasn't a bad place to be, either. According to the report, most internists, ob-gyns and general surgeons saw only single-digit increases.

For the most part, however, the good news ends there.

The Medical Liability Monitor's 12th annual survey of liability insurance rates, "Trends in 2002 Rates for Physicians' Medical Professional Liability Insurance," looked at data from companies insuring about 70% of physicians and found that between July 2001 and July 2002:

• Internists had a 24.7% average premium increase.
• Surgeons experienced a 25% average premium increase.
• Ob-gyns had a 19.6% average premium increase.

Doctors first started seeing significant increases a few years ago, and indications are that the "hard" insurance market will continue.

"It's going to take companies time to catch up with the large claims that blindsided them," said Carol Brierly Golin, Medical Liability Monitor publisher. "The rates are going to continue to go up until the insurers get the price right." [...]