This “task force” is a joke. Frivolous suits and personal injury attorneys are to blame for the situation. Where else but in America can a lawyer belly-up to the malpractice trough and get rich capitalizing on a system they don’t have any investment in? If lawyers want to continue suing, let them share in the malpractice premium instead of having doctors and the public foot the bill for their fortunes. Medical professionals step up to the plate and assume risks these attorneys wouldn’t think of assuming. The fact is, that sometimes things don’t go the way they were planned. A bad outcome doesn’t always equate to malpractice. The standard for that should be gross negligent or malfeasonce. If things keep up the way they are, doctors will leave the state or refuse to accept cases. Why should they have to be the target of the people they’re trying to help?
The problem is incestuous. Some idiot files a suit and names everyone who’s initials appear on a medical record/chart even if they had no primary involvement. Then the med-mal carriers count the number of suits their insureds were named in regardless of whether a payout was made. Now the have “frequency” to jusfity raising rates. The only way people will wake up is when the good doctors quit or relocate, and we’re left with the foreign doctors who will accept the HMO reimbursements and try to make money on volume. Too bad medical community is too professional to refuse to treat attorneys. Maybe then they’d think twice about abusing these people.
I’d like to see a cap on general damage awards with a percentage going to a fund to pay malpractice premiums. Sort of a “pay to play” system for attorneys. It seems to work for the New Jersey government.
In 2000 many med mal carriers around the US were sporting combined ratios approaching 200 because of the sky-rocketing claims of the late 1990’s. Most asked for and got higher rates. Premiums in Mass & many other staes doubled between 2001 to 2005 and combineds have come down to 100 and under. Not so in NY. Its major med mal carrier pleaded and begged for more premium and was repeatedly denied all but token rates increases. Now that once great carrier is on the brink of receivership and there’s noone but the state to blame. My guess is 14% won’t even come close to saving NY. Have your little investigation, but the fact is the State of NY caused its own problems.
I have had experience trying to get a rate increase through the NY DOI. Basically, they throw out all your actuarial data and it comes down to what they think is politically acceptable. Then, you take what they give you or they threaten a long process whereby you lose again anyway.
Anyway… just wondering if any of our fine consumer protection groups and their plaintiff attorney allies would be willing to start an insurance company? Bobby Hunter could be their chief actuary. Think of it! Applications would flood in because they would have the lowest rates around (no price gouging here!). And if you have a claim — Wow, they show up at your door almost immediately with a wheelbarrow of cash! All of this could be done while earning a normal profit that’s not good enough for the rest of the greedy insurance industry.
Think of it Bob. You could put the entire insurance industry out of business singlehandedly by creating the first, fair insurance company. I even have a dollar to invest in you.
Since the beginning of the year, Spitzer has called for “task force” after “task force” on each and every issue, with “reports” due by the end of the year. He has also named Dinallo to head each one of these “study groups”.
In the meantime nothing is done, no decisions have been made, and every industry rep scrambles to be on one of those task forces – “good for the resume”.
Spitzer is issuing “task forces” as readily as he issued supoenas. Well, it’s past time for excuses, “steamroller”, put away your “power point” and be a governor!
I don’t know, I suppose I got it from this line in the article:
“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.’
In case you aren’t aware, the NY DOI isn’t prone to granting rate increases unless substantial evidence can be shown for the need and even then the granted increase is usually far below that actually required.
Furthermore, there are only four companies writing Medical Malpractice Insurance in NY for physicians and surgeons (all non-profit), none of which are A.M. Best Rated which is a huge red flag.
The state’s largest Medical Malpractice Carrier, Medical Liability Mutual Insurance Company has reported cumulative net losses of almost $1 billion over the past three years. During that time policyholder surplus has dropped from almost $500 Million to $160 Million. $160 Million might sound like a lot of money, but when it must support the risk associated with almost $600 million of annual written premium it isn’t nearly enough. The company has almost $5 Billion in loss reserve liabilities. Just a 3.5% adverse development in those reserves (not uncommon in Med Mal) would render the company technically insolvent.
To those naysayers that don’t like a premium rate increase of 14%, remember that when insurance company investment returns were sky high and your insurance company had a Net Combined Loss Ration below .95 you didn’t complain when you got NO RATE HIKES !!!
how about explaining the half a billion dollar deficit in the assigned risk pool? think maybe inadequate rates had something to do with it?
This “task force” is a joke. Frivolous suits and personal injury attorneys are to blame for the situation. Where else but in America can a lawyer belly-up to the malpractice trough and get rich capitalizing on a system they don’t have any investment in? If lawyers want to continue suing, let them share in the malpractice premium instead of having doctors and the public foot the bill for their fortunes. Medical professionals step up to the plate and assume risks these attorneys wouldn’t think of assuming. The fact is, that sometimes things don’t go the way they were planned. A bad outcome doesn’t always equate to malpractice. The standard for that should be gross negligent or malfeasonce. If things keep up the way they are, doctors will leave the state or refuse to accept cases. Why should they have to be the target of the people they’re trying to help?
The problem is incestuous. Some idiot files a suit and names everyone who’s initials appear on a medical record/chart even if they had no primary involvement. Then the med-mal carriers count the number of suits their insureds were named in regardless of whether a payout was made. Now the have “frequency” to jusfity raising rates. The only way people will wake up is when the good doctors quit or relocate, and we’re left with the foreign doctors who will accept the HMO reimbursements and try to make money on volume. Too bad medical community is too professional to refuse to treat attorneys. Maybe then they’d think twice about abusing these people.
I’d like to see a cap on general damage awards with a percentage going to a fund to pay malpractice premiums. Sort of a “pay to play” system for attorneys. It seems to work for the New Jersey government.
In 2000 many med mal carriers around the US were sporting combined ratios approaching 200 because of the sky-rocketing claims of the late 1990’s. Most asked for and got higher rates. Premiums in Mass & many other staes doubled between 2001 to 2005 and combineds have come down to 100 and under. Not so in NY. Its major med mal carrier pleaded and begged for more premium and was repeatedly denied all but token rates increases. Now that once great carrier is on the brink of receivership and there’s noone but the state to blame. My guess is 14% won’t even come close to saving NY. Have your little investigation, but the fact is the State of NY caused its own problems.
I have had experience trying to get a rate increase through the NY DOI. Basically, they throw out all your actuarial data and it comes down to what they think is politically acceptable. Then, you take what they give you or they threaten a long process whereby you lose again anyway.
Anyway… just wondering if any of our fine consumer protection groups and their plaintiff attorney allies would be willing to start an insurance company? Bobby Hunter could be their chief actuary. Think of it! Applications would flood in because they would have the lowest rates around (no price gouging here!). And if you have a claim — Wow, they show up at your door almost immediately with a wheelbarrow of cash! All of this could be done while earning a normal profit that’s not good enough for the rest of the greedy insurance industry.
Think of it Bob. You could put the entire insurance industry out of business singlehandedly by creating the first, fair insurance company. I even have a dollar to invest in you.
Hello,
Since the beginning of the year, Spitzer has called for “task force” after “task force” on each and every issue, with “reports” due by the end of the year. He has also named Dinallo to head each one of these “study groups”.
In the meantime nothing is done, no decisions have been made, and every industry rep scrambles to be on one of those task forces – “good for the resume”.
Spitzer is issuing “task forces” as readily as he issued supoenas. Well, it’s past time for excuses, “steamroller”, put away your “power point” and be a governor!
Spitzer did a bang up job as commish and now calls for task forces. Remember about the horse designed by committee? This is what you have.
His term as Attorney General was a great success. It lead to his election as Governor. That’s all it was about anyway. I’m very cynical today.
Blame the lawyers. How about profit hungry insurance companies and oh yes those doctors who commit malpractice and ruin the lives of their patients?
I think we’ve fairly well established the Med Mal Insurance companies in NY aren’t making money.
Show me where it is established. Is it based upon their own statistics and figures?
I don’t know, I suppose I got it from this line in the article:
“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.’
In case you aren’t aware, the NY DOI isn’t prone to granting rate increases unless substantial evidence can be shown for the need and even then the granted increase is usually far below that actually required.
Furthermore, there are only four companies writing Medical Malpractice Insurance in NY for physicians and surgeons (all non-profit), none of which are A.M. Best Rated which is a huge red flag.
http://www.ins.state.ny.us/mmialist.htm
The state’s largest Medical Malpractice Carrier, Medical Liability Mutual Insurance Company has reported cumulative net losses of almost $1 billion over the past three years. During that time policyholder surplus has dropped from almost $500 Million to $160 Million. $160 Million might sound like a lot of money, but when it must support the risk associated with almost $600 million of annual written premium it isn’t nearly enough. The company has almost $5 Billion in loss reserve liabilities. Just a 3.5% adverse development in those reserves (not uncommon in Med Mal) would render the company technically insolvent.
Info taken from NAIC:
http://www.naic.org/cis/financialProfile.do
Really, the more I look into this, the more I realize that company is screwed.
To those naysayers that don’t like a premium rate increase of 14%, remember that when insurance company investment returns were sky high and your insurance company had a Net Combined Loss Ration below .95 you didn’t complain when you got NO RATE HIKES !!!