Regulators in New York approved a 14 percent increase in medical malpractice insurance rates and Gov. Eliot Spitzer formed a task force to find ways to rein in the high cost of the coverage.
The state insurance department said the latest rate hike was lower than insurance companies wanted and “is necessary to avoid further financial deterioration of the companies and perhaps an irreversible crisis in an already severely distressed market.”
State Insurance Superintendent Eric Dinallo will lead the task force, which will report back to Spitzer by the end of the year. It will include state Health Commissioner Dr. Richard Daines and representatives of physician and hospital groups, the insurance industry, consumer groups, health plans, trial lawyers and state lawmakers.
“I am concerned that the increasing cost of medical liability insurance will drive some physicians out of the field and will discourage young people from entering the medical profession in the first place,” Daines said.
Consumer groups questioned the rate increase and said there hasn’t been a recent increase in medical malpractice claims. They’ll urge the new task force to focus on the root problems of malpractice by reducing medical errors and correcting industry mismanagement.
Topics New York
Was this article valuable?
Here are more articles you may enjoy.
Social Engineering: The Analog Threat to Digital Defenses 
Florida Reforms Cut Property Premiums but Data Show Multifamily Liability Rates Up 
Binance’s $6.3 Billion Hack: How Crypto Insurance Works 
Miami Beach Buildings Sinking at Different Rates, Due to Construction, Study Finds From This Issue
