Apr 17
Ohio Malpractice Insurance Declines – But Not Enough
The Ohio Department of Insurance said yesterday that four of Ohio’s five largest medical malpractice insurers have filed for rate changes, which resulted in a 1.7 percent decline overall in medical-malpractice premiums statewide. It is the first decline in five years and an encouraging sign, although the net effect pales in light of the fact that rates increased 195 percent between 2000 and 2005.
The Department has created an insurance pool for physicians unable to find affordable coverage, and is more closely monitoring rate increases. The state also passed several tort-reform measures in recent years to limit malpractice lawsuits and damages. The reforms have reduced the number of cases that have been filed annually, which has contributed to the decline in premiums.
But one consultant in the industry says the reduction is too little and may, before long, be too late. “Malpractice insurance is one of a physician’s largest expenses, and prices have gone so high many doctors have begun to ask if they could afford to stay in business,” commented this consultant.
About 40 percent of doctors surveyed by the insurance department planned to retire within three years because of medical-malpractice insurance rates, even though only 9 percent were 64 or older. Higher premiums habitually led 66 percent of doctors to refer high-risk patients to other doctors. In some areas of the state, nearly fifty percent of the obstetricians in the area had stopped delivering babies.
In 2004, Ohio physicians spent 18 percent of their income on malpractice insurance, an average of about $40,385 each per year. While last year’s reductions brought a little relief, the overall cost is still prohibitive. For many of us, an additional expense that amounted to eighteen percent of our income would be like doubling our annual federal income tax – or worse.
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April 25th, 2007 at 10:22 pm
This problem is not limited to Ohio, unfortunately. An OB/GYN friend in Massachusetts recently limited his scope of practice to strictly gynecology and no longer delivers babies at all… a tragedy, as he is truly an outstanding and compassionate physician. He simply could not afford to pay the malpractice insurance to maintain the obstetrics element to his practice.
This type of scenario leads to diminished care available for expectant mothers, as well, so the problem is not solely one that affects the physicians.