Max Schloemann, Founder and CEO of MEDPLI, was recently interviewed by Medical Economics on the malpractice insurance trends predicted in 2021, including cost speculation, what factors are impacting rates, and what physicians can do to find a rate and policy that is best for them.
One question doctors consistently have about their malpractice insurance is “Will my rates increase this year?” While rates have been steady for the last 15 years, Max expects that malpractice insurance rates will increase across the board in 2021. He predicts that most physicians will see a 10% rise, with some high risk specialties experiencing rate increases as high as 15%.
Two main factors behind this increase are larger indemnity payments awarded by judges and rising defense costs, he explains. “For a meritless claim you can still see $100,000 in defense costs paid out by the malpractice carrier,” Max says. These rising indemnities and defense costs result in insurance carriers increasing their rates to stay financially solvent.
While COVID has certainly increased the number of patients being seen by physicians, Max determines that any impact on rates resulting from the pandemic is “yet to be seen”, however, with the trend of telehealth continuing to grow, Max has some specific advice for doctors. “Providers need to be licensed in the state where the patient is located,” he urges. While COVID has loosened some restrictions on where a physician can legally practice, Max clarifies that malpractice carriers still require doctors to be licensed in the state in which they are practicing.
Max goes on to recommend that physicians review their insurance policies whenever they have a change in their personnel, procedures, or location. At minimum, physicians should be reviewing their policy at least once a year, preferably with an independent broker like MEDPLI who can match them with the best insurance solution for their changing needs.
You can watch the full interview with Max Schloemann at the Medical Economics website.
For information about how MEDPLI can help you review your insurance policy or help you find a specialized liability solution at a fair price, please contact us or request a quote.