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Insurance Department Issues Second Annual Ohio Medical Liability Closed Claim Report
COLUMBUS, Jan. 22, 2008
The Ohio Department of Insurance has issued its second annual Ohio Medical Liability Closed Claim Report, Director Mary Jo Hudson announced. Data collected from entities providing medical malpractice coverage to Ohio health care providers and health care facilities shows a total of 4,004 medical malpractice claims were closed in 2006. Claims that generated an indemnity payment, which is the amount of compensation paid on behalf of each defendant to a claimant, averaged $288,080 per claim.
"After many recent years of volatility in the medical malpractice market, we certainly appreciate this downward trend,” said Director Hudson. “Higher regulatory standards on setting reserves, implemented nationally, have served as a stabilizing force in the market."
Ohio law requires all entities that provide medical malpractice insurance in Ohio - including authorized insurers, surplus lines insurers, risk retention groups and self-insurers - to report closed claim data to the Department. The specific data filed by each reporting entity is confidential and is not subject to public record requests. The Department is required to prepare an annual report summarizing the closed claim on a statewide basis.
Some key findings in the report include:
- Total Claims: A total of 4,006 claims were reported for 2006 by 93 entities. Authorized insurers reported the majority of the claims, 2,495. Self-insured entities reported 1,283 claims, surplus lines insurers reported 169 claims and risk retention groups reported 57 claims. For 2005, a total of 5,051 claims were reported by 91 entities.
- Indemnity Payments: Almost 80 percent of medical malpractice claims resulted in no payment to a claimant. A total of 3,210 claims had no indemnity payments while 794, or 20 percent, closed with an indemnity payment. The total amount paid to claimants was $228,735,572, an average of $288,080 per claim for those claims that generated an indemnity payment. Similarly, in 2005, 20 percent of the claims closed with an indemnity payment, averaging $269,374 per paid claim.
- Claim Expenses: While most medical malpractice claims closed with no payments to claimants, almost all claims generated expenses for investigation and defense. These expenses totaled $88,131,139, an average of $25,672 per claim. In 2005, the average expenses per claim were $24,443.
Ohio Department of Insurance Contacts:
Robert Denhard, Public Information Officer
(614) 644-3366
Jarrett Dunbar, Public Information Officer
(614) 644-2475
Physicians Preferred Malpractice Insurance Company Converts from a Reciprocal to a Stock Company
JACKSONVILLE, Fla., Jan. 15 /PRNewswire/
Physicians Preferred Insurance Company has successfully converted to a Florida stock company following the overwhelming approval of its subscribers.
Physicians Preferred, which writes medical malpractice insurance, was originally formed as an insurance reciprocal in the fall of 2004. The conversion to a stock company became effective January 1, 2008.
The conversion will not result in any changes to the professional liability insurance policies issued by Physicians Preferred prior to the conversion or the coverages and benefits of existing policies, according to Elliott Horovitz, company founder and Chief Executive Officer of the insurance company.
Conning Research: Medical Malpractice Poised for Long-Term Stability
Hartford, CT, January 14, 2008
Medical Malpractice insurance has been stable since its last market disruption in the early 2000s and is now poised for continued profitable growth, according to a new study by Conning Research and Consulting, Inc.
"The medical malpractice industry has changed structurally since the market crisis of the early 2000s, and is poised for long-term profitable growth," said Mark Jablonowski, analyst at Conning Research & Consulting. "Yet the industry has been here before, with brief episodes of profitability that disintegrate into severe unprofitability. Achieving long-term growth will depend on insurer' ability to maintain a commitment to adequate pricing and careful underwriting of this highly specialized line."
Ohio Supreme Court upholds limits on pain and suffering awards
Business First of Columbus, December 27, 2007
The Ohio Supreme Court on Thursday ruled that tort reform measures enacted by state legislators in 2005 don't violate the constitutional rights of plaintiffs who win damages in personal injury lawsuits.
The ruling was in response to constitutional challenges of Senate Bill 80, which took effect in April 2005. The Republican-sponsored law caps the amount of noneconomic damages that can be awarded to personal injury plaintiffs at $250,000, or three times the amount of economic damages at a $350,000 maximum, with the exception for plaintiffs who suffer permanent or major injuries. The bill also limits the amount of punitive damages that can be awarded in Ohio tort actions to no more than twice the amount of the plaintiff's compensatory damages from the same defendant.
The Doctor's Company Approves Medical Malpractice Premium Dividend for 2008.
We are pleased to inform you that The Doctors Company's Board of Governors has approved a dividend distribution for 2008 renewals averaging 7.5 percent for California, Georgia, Florida, North Carolina, Ohio, Virginia, Washington and Wyoming. A dividend averaging 5 percent will be awarded to Colorado renewals and national program member renewals.
This dividend is in addition to the 2007-2008 dividend reflected in member renewals for the current year.
OHIC Insurance Company Acquisition Update
It's been almost a year since The Doctors Company acquired OHIC Insurance Company (OHIC) in January 2007, and the merger has already yielded impressive results. The Doctors Company has doubled its market size in Ohio to 18.2 percent to become the largest physician-owned medical liability carrier in the state, serving more than 3,000 physicians and 20 community hospitals.
Read update (PDF, Adobe Acrobat required. Get it free here.)
Medical Protective Remains Nation's Only Dedicated Medical Liability Carrier with the Highest Financial Strength Ratings from Both A.M. Best and S&P
A.M. Best and S&P Again Affirm Medical Protective's Respective "A++" and "AAA" Rating
Fort Wayne, IN - December 17, 2007
Once again the independent rating agency A.M. Best has rated Medical Protective "A++", its highest possible financial strength rating. Earlier this year, Standard & Poor's (S&P) also reaffirmed its "AAA" rating - their highest - for Medical Protective, and Medical Protective remains the only dedicated medical liability insurer to receive both S&P's "AAA" rating and A.M. Best's "A++" rating.
"We appreciate A.M. Best again recognizing Medical Protective with its highest rating," said Timothy Kenesey, President and CEO of Medical Protective. "It is more tangible evidence of our industry leadership in service of healthcare providers, and of the reputation and commitment of Warren Buffett's Berkshire Hathaway, our parent company. For over a century - while so many others in the medmal industry have come and gone - Medical Protective has been the one company that generations of healthcare providers have relied on. We will continue to serve healthcare providers with the nation's (i) most secure financial strength, (ii) most winning and proactive defense of their assets and reputations, and (iii) smartest risk management solutions and patient safety education."
A.M. Best, while affirming Medical Protective's rating, acknowledged Medical Protective's "leading market presence in the primary medical professional liability market, its distribution capabilities, aggressive claims philosophy and its comparatively strong operating performance" as well as "enhanced financial flexibility…and leading business position." S&P had similar sentiment when reaffirming earlier this year its highest rating for Medical Protective: "Medical Protective's ratings reflect its leading market position, effective distribution … disciplined underwriting and pricing, and prospectively strong earnings."
"Despite successful tort reforms in some states and recent moderating frequency in claims in many jurisdictions, healthcare providers remain under assault from tens of thousands of frivolous lawsuits and numerous excessive verdicts," Kenesey added. "Regrettably, there now seem to be a fair number of more aggressive start-up and some existing companies - many unwilling or unable to seek independent ratings from organizations like A.M. Best and S&P - who claim to sell healthcare providers long-term protection and security, but lack the necessary defense expertise and financial capacity to truly back it up for the long haul. In stark contrast, Medical Protective policyholders can always sleep peacefully at night, knowing that their assets and reputations will be protected from not only today's attacks, but also from the long-to-resolve claims that arise years down the road."
About Medical Protective
With about $700 million in annual premium, Medical Protective is a national leader in primary medical professional liability coverage and risk solutions to physicians, dentists, allied healthcare providers, community-based hospitals and other healthcare facilities, and professional corporations. As the nation's first provider of medical professional liability insurance, Medical Protective has been protecting the assets and reputations of doctors and other providers of healthcare for over 100 years. Its offerings include professional liability insurance on both claims-made and occurrence forms across the healthcare spectrum, risk management consulting and education, premium finance solutions and - through affiliates and partners - additional financial products and services for its healthcare providers. Medical professional liability insurance products are underwritten by The Medical Protective Company or its affiliates, each rated AAA (Extremely Strong) by Standard & Poor's and A++ (Superior) by A.M. Best, and are distributed primarily through a nationwide network of appointed agents, as well through employee sales managers. Medical Protective is a Berkshire Hathaway company. More information about Medical Protective is available at www.medpro.com.
Cautious optimism greets second year of stable, lower liability premiums
Doctors warn that insurance rates are still extremely high in some areas and that courts could overturn recent tort reforms.
American Medical News, December 17, 2007
For the second straight year, medical liability insurance rates are easing nationwide, with nearly 84% of company-reported rates holding steady or dropping in 2007. That's according to the latest Medical Liability Monitor survey, the largest of its kind to track how much insurance carriers charge physicians.
Cosmetic Surgery Specialty Risk Management Program
Medical Protective has partnered with the American Academy of Cosmetic Surgery (AACS) to offer members an exclusive Cosmetic Surgery Specialty Risk Management Program that will underwrite cosmetic surgery as its own discipline. The Program also includes coverage for training fellows and a 5% premium discount for board certified members.
The Program will be rolled out on a state-by-state basis as Medical Protective receives approvals on filings from each state's Department of Insurance (DOI). The following states are open for review effective October 1st: AZ, CA, DC, FL, HI, ID, IL, IN, IA, KS, LA, ME, MD, MA, MI, MS, MO, MT, NE, NV, NH, NM, NC, ND, OH, OK, OR, PA, RI, SD, TN, UT, VA, WA, WI & WY.
Pennsylvania's Medical Malpractice Costs Dropping, Says Gov. Rendell
Insurance Journal, October 26, 2007
The amount of money paid by a state medical malpractice insurance fund will decline for a fourth straight year, a sign that the state's malpractice problem is improving, Gov. Ed Rendell said.
The Medical Care Availability and Reduction of Error fund will pay about $191 million in claims this year, half of what was paid in 2003, when Rendell took office, the governor said during a news conference in Philadelphia.
Doctors getting break from malpractice rate hikes
Top five Ohio insurers cut rates from year-ago levels
Business Courier of Cincinnati, October 12, 2007
After years of enduring steep increases, Greater Cincinnati physicians are seeing relief as their malpractice premiums head south.
Doctors Co. to acquire liability insurer for $281 million
San Francisco Business Times, October 16, 2007
… Mitchell Karlan M.D., SCPIE's chairman, said in the announcement that the merger would link SCPIE with "one of the largest and most respected professional liability companies in the nation." Both companies were founded by doctors in 1976, the year after reforms in California capped medical malpractice damage awards, and they share similar values and goals, according to the principles.
Medical malpractice insurer bids to win back old friends
Turnabout done, Ohic Insurance courting ex-clients that dropped it
Business First of Columbus, August 17, 2007
Ohio's largest homegrown medical malpractice insurer wants to cap a four-year turnaround by wooing back some of the hospitals and clinics it lost as customers after pulling out of a key industry rating system three years ago.
Ohic Insurance Co. in July was again rated by A.M. Best Co., the most recognized authority for actuarial assessments in the insurance industry. Not only that, Ohic received the A- or "excellent" rating of its new parent, the Doctors Co.
Medical malpractice insurance crisis may be easing, study shows
Naples Daily News, October 13, 2007
Florida doctors may be getting a break with their medical malpractice insurance, an analysis by the state Office of Insurance Regulation shows.
Fitch Places The Doctors Company Group's Ratings on Rating Watch Positive
Business Wire, October 16, 2007
Fitch's Positive Rating Watch is heavily based on TDC's strong performance under Fitch's new economic capital model, Prism, under which the company's capital exceeds our standards for a 'AAA' level of confidence at year end 2006.
What the doctors ordered
Growth in medical-office construction helps take sting out of housing crunch
The Columbus Dispatch, September 19, 2007
The effect of Dublin Methodist Hospital, which won't open until January, already has extended beyond the health needs of central Ohioans. Construction of the $130 million hospital has kicked off a building boom nearby. Dozens of medical offices are being built near the OhioHealth property, ranging from a medical-office building attached to the hospital to 4,000-square-foot office condominiums being snapped up by physicians.
The Medical Malpractice Crisis
TheDoctorsCompany.com
Background information on the current medical malpractice crisis and its affect on the health care system.
Tracy McManamon to Head Employee Benefits Department
We are very pleased to announce that we have expanded our services now available to our existing clients and friends. Tracy McManamon has joined our firm after serving as Senior Vice President with Acordia, one of the largest insurance brokerages in the world, and will now lead our employee health and welfare practice. Tracy is the second youngest of Tom's five brothers and he and his wife Amy have four daughters Sarah 18, Catherine 9, Elizabeth 6 and Madalen 2.
Tracy has over 16 years of experience in all phases of employee benefits including:
- Life, Long-Term Care, Disability, Dental & Vision
- Fully insured & Self insured health programs
- Flexible Spending Accounts (FSA's)
- Health Care Savings Accounts (HSA's)
- Health Reimbursement Accounts (HRA's)
- Cafeteria accounts and voluntary benefits programs.
Programs are available for both individuals and groups as well as local and national clients. Tracy has access to all the major carriers competing in this ever-changing world of employee benefits.
If you would like to schedule a free consultation to discuss with Tracy ways to save on your current benefits package contact please call Tracy at 440-892-8308 ext. 16 or e-mail him tracy@mcmanamoninsurance.com