The Pennsylvania Orthopaedic Society praised Insurance Commissioner Teresa Miller for her recent decision to maintain stability in medical liability insurance premiums.
Here are six key points on the situation:
1. Act 13 of 2002 required physicians to obtain $1 million in medical liability insurance coverage. Of the $1 million, $500,000 is acquired from the private market and the remaining $500,000 is provided through the Mcare Program.
2. Additionally, the act authorizes a medical liability market capacity study every two years and authorizes the insurance commissioner to raise the basic coverage limits in $250,000 increments up to the $1 million level if the study reveals adequate capacity exists.
3. The study does not provide an analysis of the potential cost implications to physicians from raising the basic coverage limits.
4. Various insurance sources claim an increase to $750,000 in basic coverage limits would cause premium increases of up to 25 percent for high-risk specialty physicians.
5. Ms. Miller decided that medical liability coverage limits will remain at $500,000 for the next two years rather than increasing to $750,000.
6. Ms. Miller's decision affirms Pennsylvania Gov. Tom Wolf's administration's support of the physician community. Gov. Wolf previously stated he would find a logical method of phasing out the Mcare Program so that it does not overly burden the state's physicians.
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