Medical malpractice insurance covers doctors and other professionals in the medical field for liability claims arising from their treatment of patients.
Also known as medical professional liability insurance, medical malpractice insurance operates much like other types of insurance, with insurers collecting premiums from policyholders in exchange for an agreement to defend and pay future claims within the terms and limits set by the policy.
Medical malpractice insurers establish rates based on medical specialties within a particular state and geographical region - usually by county. Insurers may offer discounts based on particular characteristics of the policyholders, such as claim histories, participation in risk-management programs, or membership in particular medical societies or associations.
Medical malpractice insurance premiums can vary significantly among the various carriers. For this reason, Madison takes a fully integrated approach to malpractice insurance coverage, working with a variety of respected carriers to ensure you get the best coverage possible for your particular needs, at the most affordable rates available in the industry.
The cost of medical malpractice insurance began to rise in the early 2000s after a period of essentially flat prices. Rate increases were precipitated in part by the growing size of claims, particularly in urban areas. Among the other factors driving up prices was a reduced supply of available coverage as several major insurers exited the medical malpractice business because of the difficulty of making a profit.
Types of Medical Malpractice Insurance Coverage
Claims-Made Coverage :Claims-made coverage provides coverage for insured events occurring on or after the specified policy's retroactive date, when the insured events are reported during the policy period. If the retroactive date is the beginning of the policy period, the policy is relatively inexpensive and is called "first-year" claims-made. However, as the number of years from the retroactive date increases, the policy "matures." The premiums increase each year using "step factors" until reaching the mature level, which occurs approximately five to eight years after the policy's retroactive date. Claims-made coverage is the most widely available form of medical malpractice insurance coverage today.
Retroactive Coverage (Prior Acts Coverage) :Under a claims-made policy, retroactive coverage provides insurance for claims arising from incidents that occurred while a previous claims-made policy or policies were in effect, but that were not reported until that policy (or the last in a succession of policies) was terminated. The coverage period begins with a "retroactive date" and continues while the policy is in force. With retroactive coverage, the new policy covers such claims within the other terms and conditions set by the policy. With retroactive coverage, the purchase of tail coverage from the previous carrier is not necessary.
Tail Coverage (Extended Reporting Coverage):Tail coverage protects the physician against claims that arise from professional services performed while the claims-made policy was in effect, but which were reported after the termination of the policy. Tail coverage is not automatically extended. While some insurers offer tail coverage free of charge for retiring doctors who meet certain criteria, many other circumstances require purchase at a considerable cost to you. However, there are options available through Madison to significantly reduce the cost of your tail policy.
Occurrence Coverage :Occurrence insurance covers the insured for any incident that occurs or occurred while the policy is or was in force, regardless of when the incident is reported or when it becomes a claim. Occurrence insurance for medical liability coverage is rarely offered today because of the difficulty of insurers being able to accurately project long-term claims costs under this type of policy.
Medicare Advantage Plan
A Medicare Advantage Plan (like an HMO or PPO) is another Medicare health plan choice you may have as part of Medicare. Medicare Advantage Plans, sometimes called "Part C" or "MA Plans," are offered by private companies approved by Medicare.
Types of Medicare Advantage Plans
Health Maintenance Organization (HMO) Plans
Preferred Provider Organization (PPO) Plans
Private Fee-for-Service (PFFS) Plans
Special Needs Plans (SNP)
