August 2012: The State of the Liability Market

As summer fades into fall, it would be a good idea to take a brief look at the state of the liability market and provide you with a snapshot on where the market is today. As you know from reading these pages, the liability market is regulated on a state-by-state basis. Frankly, some states have been more proactive at bringing down liability insurance costs and attracting physicians, while other states have maintained the status quo.

States Going in the Right Direction. The state that is most favored by physicians at this time, regarding the med mal insurance market, is probably Texas. Texas has implemented a form of tort reform and the caps on damages, along with low limits, make it a nice example for the rest of the country. Although the costs aren’t coming down as quickly as the legislators and physicians might have hoped, it is still seen as a positive model for other states. Take a look at some of Texas’ rates.

Other states that we have found inexpensive liability insurance premium for recently include: Wisconsin, Indiana, and New Mexico.

States in Need of Improvement. While some states have been considerably proactive regarding med mal insurance, other states seem to be stuck in a rut and unable to move forward with a better plan for reducing costs. We’re thinking about New York. New York continues to be a very expensive state with limited options and very high premiums. One bright note in New York is that it appears that the risk retention groups are making considerable inroads and are beginning to offer more competitive choices. Take a look at some of New York’s rates. Other states that we are concerned with and continue to watch closely are: Illinois, Missouri, and Michigan.

Since the med mal insurance market is so different state-to-state, we encourage you to contact us if you have any questions regarding a specific state, or if you would like to compare rates, on a state-by-state basis. Finally, as the Presidential election approaches, you will begin to hear lots of talk from both sides regarding the Affordable Care Act and the cost of liability insurance for physicians. If anything changes, or if there are any important developments, we will cover it here and let you know.