Medical malpractice insurance is an important item in your operating budget. It protects your income, assets, and more in case a patient files a lawsuit due to alleged negligence or error. How much should you expect to pay for coverage? Let’s explore some factors to consider when pricing your insurance protection and how you can budget for the cost of medical malpractice insurance.
What Determines the Cost of Medical Malpractice Insurance?
The cost of malpractice insurance varies depending on several factors, including your state, location within that state (rural vs. urban, for instance), specialty, and claims history. In general, rates are higher in states with stricter laws and higher incidences of litigation.
Specialists–neurologists and OB/GYN physicians, for example–also tend to have higher premiums than primary care physicians. Additionally, doctors who have faced multiple malpractice claims in the past are likely to have higher rates.
State Laws and Regulations
Each state has its own laws and regulations regarding medical malpractice insurance. Some states cap how much a patient can receive in damages.
Others have no caps, making the practice environment riskier for doctors and thus increasing insurance costs. Research your state’s laws and regulations when selecting your coverage.
Location within Your State
Where you practice within your state also impacts the cost of your malpractice insurance. Typically, urban areas have higher premiums compared to rural areas. This difference is due to the denser population in cities and a higher potential for incidents that prompt filing a claim or lawsuit.
The Rising Price of Medical Malpractice Insurance
A common recommended coverage for medical malpractice insurance is $1 million per claim and $3 million in total aggregate. Your coverage needs may be higher.
Accordingly, discuss what’s best for you, your practice, your employees, and other determining factors with an experienced medical malpractice insurance broker. Brokers work with multiple companies to obtain the best possible coverage at affordable rates.
Also, healthcare providers must stay informed about the changing landscape of medical malpractice insurance and advocate for fair and reasonable rates. Implementing risk management strategies can lower premiums and protect both patients and practitioners from potential harm. A qualified medical malpractice insurance broker can educate you on risk management strategies, such as maintaining accurate and secure medical records and implementing patient safety protocols.
Over the past few years, premiums in 15 states have increased by double-digit percentages–a staggering 63.6 percent in Illinois, according to the American Medical Association. Researchers do not expect this rise in medical malpractice insurance premiums to slow anytime soon.
This increase in medical malpractice insurance rates has a significant impact on healthcare providers, particularly smaller practices and rural hospitals, who may struggle to afford these rising costs. It also puts pressure on physicians to practice defensive medicine, ordering unnecessary tests and procedures in order to avoid potential lawsuits.
To address this issue, many states have implemented tort reform measures, such as stricter standards for filing lawsuits. However, these efforts have been met with opposition from trial lawyers and patient advocacy groups. They argue these reforms limit patients’ rights to seek compensation for injuries caused by medical negligence.
All that being said, the cost and affordability of adequate medical malpractice insurance remain a concern for healthcare providers, hospitals, group practices, and more.
How Can I Budget Medical Malpractice Insurance?
This is an excellent question that all healthcare providers should consider. Again, choose a qualified and experienced medical malpractice insurance broker to help you select a company and coverage.
The broker can show you what discounts you may be entitled to–things such as:
- Risk management programs you participate in
- Being a member of professional organizations such as the American Medical Association
- Exploring discounts for being with a certain insurance company for an extended period of time
- Participation in case evaluation programs that precede actual litigation
- Reviewing your policy needs annually with your broker
Also, people spread out car or homeowners’ insurance premiums–paying them monthly or quarterly. As a healthcare provider, you can arrange for budget-friendly payment options for medical malpractice insurance.
You also may explore using a line of credit. Your broker can help you navigate through these options and find the best fit for your specific needs.
In addition to finding discounts, healthcare providers must review their policy needs annually with their insurance brokers. Make sure the level of coverage is appropriate for your needs. Stay up to date on changes in the insurance industry as it applies to your specialty, state, and other factors.
Getting Your Best Medical Malpractice Insurance Price
At eQuoteMD, our medical malpractice insurance representatives shop for the best possible rates offered by reputable A++ list companies. Whether you are new to your practice or employer or have served patients for decades, we can help you get the right coverage at the right price.
Contact our St. Louis, MO, office to arrange a consultation. Call (855) 823-5283 or request a complimentary quote here. Our experts are here to obtain excellent coverage at a price that fits your needs and your budget.
