Healthcare News & Insights

Medical liability premiums down for most docs

Very few costs are decreasing these days, but here’s a big one that is, for most healthcare providers: liability insurance premiums. 

That’s the message from a recent study from Medical Liability Monitor. The study of rates from 40 insurance companies found that 55% of rates stayed flat compared to last year.

Among those that did change, however, most went down for the sixth year in a row, with 90% decreasing between 0.1% and 9.9%.

Changes varied based on geography, ranging from a 3% increase in New Hampshire to an 11.4% drop in Mississippi.

The actual rates paid may have decreased even more as more insurance companies have started offering schedule credits — 11% of companies introduced new credits this year, and 20% did so last year. Overall, 30% of companies increased the amount of credits they offered this year, and none reported a decrease.

What’s behind the drops in rates? The report attributes the trend largely to more doctors joining Accountable Care Organizations, more doctors becoming employees of larger hospitals and practices, and other initiatives promoted by the Patient Protection and Affordable Care Act.

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