Has Tort Reform resulted in a savings to doctors on their mal
practice premiums?
It is too soon to tell, but a lot of doctors are wondering why their
premiums have not gone down.
Just like Exxon and the big oil companies, what incentive does the insurance
industry have to pass on any savings to the doctors?
There is a new Bill pending before our lawmakers. What impact
would this "insurance reform" bill have on doctors premiums?
Key provisions from the bill includes:
- Disclosure of how much the ins company pays out in losses
- Rates must be based on a company’s actual Missouri loss
history, not on the industry on a whole or what is happening in other
states
- Department of Ins. will be required to publish a comparison of each
companies rates along with the median rate
- The Department of Ins, will be given the power to disapprove an ins
companies rates before they take effect, as opposed to they way it
is handle currently which is after the rate takes effect.
Who is opposed to this bill and why?
What is interesting is that both doctors and trial lawyers agree with
this bill.
On the other hand, the insurance industry is against the bill on the
basis that it constitutes “over regulation” which will discourage
other insurance companies to come into the state.
What are some other features of this bill and if passed, when
would it go into effect?
The Director of Insurance would have until May 30, 2007 to set up the
regulations to implement the law. Insurance companies would have until
June 1, 2008 to begin reporting to the Dept of Insurance.
Any rate increase would then have to be submitted 90 days in advance
to the Department of Insurance and the Dept would then have 60 days to
approve or disapprove the request.
Finally doctors must receive a 180 day notice before their coverage
could be cancelled.
Let the truth come out. In my opinion this bill will become
law, and it will benefit everyone ... except maybe the insurance companies.
