Medical malpractice insurance

Medical malpractice insurance is a big part of health care, and since most of us are not doctors, many of us don't think much about it. Doctors of course do. The high cost of medical malpractice insurance has forced many doctors to stop practicing all together. One Brooklyn obstetrician was forced into retirement because her malpractice insurance bill was $160,000 per year. She had never been sued or even had as much as a settlement against her.

What exactly has made medical malpractice insurance go up so much? Did you know that 10 cents of every dollar a doctor makes goes to paying for malpractice insurance?

Malpractice insurance costs doctors tens of thousands of dollars per year. This is the cost of doing business for a doctor even if he or she has never made a mistake or been sued. Some high costs states have premiums upwards of $200,000 per year and in other states it costs around $20,000. The reason for this is that in many states juries have awarded wronged patients excessively generous rewards knowing that the insurance companies can pay. The cost of these lawsuits is then passed onto the physician. One study has shown that the cost of malpractice litigation is 30 billion dollars per year and has risen 10% annually

All these factors cause doctors to take various steps that directly affect the cost of health care. Since a physician can get sued at any moment, they order excessive tests to cover themselves, and avoid some fields of medicine altogether. This of course drives up the cost of health care. Medical specialties with the highest premiums include obstetrics and anesthesiology. Many doctors avoid these entirely, and who can blame them?

What should a doctor who simply wants to practice medicine and help his or her patients do? With many insurance providers dropping the medical practice insurance coverage, how many choices does a physician have?

There are many things to consider when purchasing a medical malpractice insurance policy. Find out about the financial stability of your provider. Are they financially secure, or will they declare bankruptcy and leave you holding the bag? Check out the contractual limitations within the policy. In other words, read the fine print or better yet, have your lawyer do it. How long has the company been in business? What is their level of experience in handling malpractice claims? Make sure you are covered for additional liabilities such as things that happen on your property and in your facility.

When obtaining medical malpractice insurance, do your research. It is also a good idea to consult an attorney who has experience in malpractice suits and with insurance policies. For more information and links to the companies mentioned above, please visit Medical Malpractice Insurance.