N.Y. Regulator Limits Med Mal Rate Hike To 7%

N.Y. Regulator Limits Med Mal Rate Hike To 7%

NU Online News Service, July 2, 12:32 p.m. EDT?Rejecting an insurers recommended 25.7 percent rate hike, New York's insurance regulator said yesterday he is establishing a 7 percent premium-rate hike for all medical malpractice insurers in the state. [@@]

Insurance Superintendent Gregory Serio said the 7 percent hike, effective for the policy year that began yesterday, will be applicable to all insurers offering medical malpractice coverage in the state.

The rate would not apply to the Medical Malpractice Insurance Plan (MMIP), which covers some 500 doctors who cannot obtain insurance coverage from other carriers.

The MMIP will receive a 20 percent rate hike. But overall, the superintendent said the majority of New York state's 50,000 actively practicing doctors will see only a 7 percent rate hike in their medical malpractice insurance premiums.

"New York is home to the nation's best health care system and while much of the country struggles with medical malpractice crises, New York's efficient regulatory oversight has stabilized rates while protecting physicians and patients alike," Mr. Serio said.

His statement added that, "Today's rate changes continue to ensure that medical malpractice rates remain stable while malpractice victims are adequately compensated and doctors adequately protected."

The 7 percent hike continues a trend to increase premiums. Between 2002 and 2003, the approved rate hike was only 1 percent but was raised to 8.5 percent for the 2003-2004 period.

Superintendent Serio said his department is also completing rates for the excess medical malpractice coverage and that decision will be announced shortly.