Liability premiums stabilizing, but still painfully high-priced

The latest annual rate survey indicates the worst might be over, but doctors in crisis states still face expensive premiums.

By Mike Norbut, AMNews staff. Nov. 7, 2005.

Nearly 64% of medical liability insurers reported that rates dropped, held steady or increased no more than 10% in 2005, offering further evidence that rates seem to be leveling, according to results from the annual Medical Liability Monitor rate survey.

But the comprehensive survey, which looks at how much medical liability insurers are charging physicians, offers little solace to doctors who see their liability premiums holding at an extremely high level. For example, some Ohio obstetrician-gynecologists pay nearly $189,000 annually for coverage, while some in Minnesota pay less than $20,000 a year.

The survey "shows that the broken liability system has driven physicians' insurance premiums to an all-time high in many states," said AMA Chair Duane M. Cady, MD. "Physicians continue to be forced to limit patient services in response to the escalating and unsustainable insurance rates."

As in previous years, the 2005 survey asked liability insurers to report mature claims-made manual insurance rates with limits of $1 million/$3 million as of July 1 for internal medicine, general surgery and ob-gyn. The survey also looked at lower-limit policies offered in Florida and Texas. Florida doctors can buy policies with $250,000/$750,000 limits, while Texas doctors can purchase policies with $200,000/$600,000 limits.

The analysis showed that most rate changes for the common limits fell in the 0% to 14.8% range in 2005, compared with most increases being between 6.9% and 24.9% last year.