GE Commercial Insurance’s Medical Protective (MedPro) announced it reportedly has been forced to issue non-renewal notices to physicians whose medical malpractice insurance policies expire in January 2004.
MedPro had filed for a rate increase more than two months before the Florida legislature passed its recent tort reform measure, but that rate filing had not been approved prior to the passage of the new legislation.
This new law reportedly mandated a rate freeze, which required MedPro to withdraw its rate filing. MedPro said it is unable to resubmit its request for new rates until Florida’s Office of Insurance Regulation (OIR) calculates its “presumed rate factor,” which could be as late as mid-November. Florida’s insurance regulations require 60 days notice of any price increase to policyholders. Given this time frame it is reportedly impossible for MedPro to create a new rate filing in time for its January 1, 2004 renewal policies.
“MedPro remains strongly committed to the State of Florida and its health care providers,” said Timothy Kenesey, president and CEO of MedPro. “However, we cannot write business today at rates that are inadequate, or worse, unknown to us. Our ability to charge the right rates for our coverage has allowed us to provide peace of mind to physicians for more than 100 years. We owe it to all of our policyholders to ensure we are charging adequate rates in every state where we do business so we can be here for the next 100 years.”
“Florida’s legislators and its insurance regulators understand our concerns, and we are working with them to devise an acceptable solution to this problem,” added William Daley, executive vice president and chief counsel of MedPro. “We plan to file new rates as soon as possible and hope to have approval to use those rates prior to our physicians’ renewal dates in January.”
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