Massachusetts physicians face 4th consecutive double-digit jump in annual medical liability premiums

Professional liability premiums for physicians from largest commercial insurer continue to rise by by an average of 11.3 percent for 2004

Waltham, MA (PRWEB) May 18, 2004 --The Massachusetts Medical Society today announced that physicians in the Bay State face their fourth consecutive double-digit increase in professional liability premiums on July 1, when the average rate increase from the regions largest commercial underwriter of medical malpractice insurance are expected to jump 11.3 percent. The increase is pending review by the State Department of Insurance.

The 11.3 percent jump follows annual average rate increases of 9.5, 14. 12.5, and 20 percent over the last four years. And while the 11.3 percent rise is an average rate increase, 68 of 114 classifications are slated for increases of 15 percent or more.

With this latest increase for 2004, the medical liability rate for Massachusetts physicians has nearly doubled - soaring 99 percent - on a compounded basis over a six-year period since 1998.

Alan C. Woodward, M.D., the newly-elected president of the Massachusetts Medical Society, said The relentless rise of liability premiums is having a huge impact on many levels of health care. It has become a financial burden on many physicians, forcing them out of practice, out of state, into early retirement and into other careers. It is impeding recruitment and retention of physicians throughout the state, especially at community hospitals. Its causing shortages of critical specialties, like neurosurgeons. And its turning away many bright, young medical students from the critical specialties, and that bodes ill for the future. Patient care and access to care continue to be in increasing jeopardy."

Woodward said that while the situation seems only to get worse, we are encouraged by the fact that lawmakers on the federal and state levels are listening and acting. The US House of Representatives just passed HR 4280, the Health Act of 2004, which included liability reforms, and the State Legislatures Joint Committee on Insurance has moved forward a bill that would provide relief on professional liability as well."

The new 2004 rates will hit hardest diagnostic radiologists, who may see a 32.2 percent leap in premiums, and neurologists, who are expected to see a 26.4 percent increase. Among those subject to 15 percent increases are the specialties of orthopedic surgery, vascular surgery, emergency medicine, anesthesiology, and gastroenterology. In its physician workforce studies over the past three years, the Medical Society has found these specialties to be among those with the most acute shortages in the state.

OB-GYNs (obstetrics and gynecology), neurosurgery, and orthopedic surgery rank first, second and third in premiums based on purely dollar amounts. The 2004 base rate from ProMutual for OB-GYNs will be $97,243, a rise of 3.5 percent; for neurosurgeons, $90,710, up 7.7 percent; and for orthopedic surgeons, $72,080, up 15 percent. Many OB-GYNs and neurosurgeons, however, have been experiencing rates of $100,000 or more for the last few years.

According to Medical Society officials, the continuing rise in professional liability premiums, is a major driving force in a constantly deteriorating practice environment for physicians in Massachusetts and is having a significant and increasing impact on reducing access to care for patients.

As evidence of its impact on access to care, officials cite findings from its 2004 Physician Workforce Study. Surveying practicing physicians across the state, the Society found that 49 percent of physicians indicated that the fear of being sued has caused them to alter or limit their scope of practices and that 16 percent of physicians limited their scope of practice due to the cost of their professional liability insurance.

The Societys Physician Practice Environment Index, a statistical indicator of selected factors that shape the overall environment in which physicians provide patient care in the state of Massachusetts, has fallen for 10 consecutive years and reached an all-time low in 2003. A key factor that has been driving the index down has been soaring liability premiums.

The Massachusetts Medical Society, with more than 18,300 physicians and student members, is dedicated to educating and advocating for the physicians and patients of Massachusetts. Founded in 1781, the MMS is the oldest continuously operating medical society in the country. The Society owns and publishes The New England Journal of Medicine, the Journal Watch family of professional newsletters, and AIDS Clinical Care, and produces HealthNews, a consumer health publication. For more information, visit www.massmed.org

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