This article talks all around the real issue which is the retirement, closing of doctor’s practices all around the country due to the mess made with Obamacare. Other doctor’s got out of private practice and went to large practices or into the hospital setting because they didn’t like dealing with the mountain of paperwork and being underpaid by Obamacare & Medicare. No wonder there is a soft market out there.
The MPL market is not soft due to Obamacare. It was soft before Obama even took office. As Nash said, it’s due to the glut of Med Mal carriers fighting to win business and keep what they do have.
Obamacare is a significant to a soft market. Physician group acquisition , hospital closures and acquisitions brought on by Obamacare probably rank as the number one factor for a soft market.
Millions of premium dollars have left the market creating excess carrier capacity. Pretty simple formula, larger capacity equals need to regain market share equals lower prices to write business.
It is a good deal for physicians that have survived Obamacare but it has created a triage and transport health delivery system in rural areas (another topic for another day)
So this is actually not true at all — and the data isn’t diputed amongst MPL leaders.
The reality is Obamacare did not flood the market with sick people who didn’t have insurance and then sue which raises premium etc.
The reality is the “low-deductible” options are still too expensive — so these people aren’t going to the doctor. And when they do the courts have actually used pre-existing conditions against them to lessen costs to the MPL carriers.
The soft market is being driven by tort reform and better risk management. MPL is profitable and we understand it better than we did 10-15 years ago so people want to write it.
The other driver is the cost of medical education/debt. No one can afford to go into private practice facing 250k+ in loans. We are facing an entire generation who only knows employment. The last boomers are hanging onto their practice, but they got to experience the golden years of medicine — and made a huge profit. It’s a whole new world out there.
In response to BS:
Obamacare HAS been a significant contributor to the soft market. The amount of MPL premium exiting the marketplace, brought on by mergers and acquisitions, is a dominant factor.
Physician groups being acquired, hospitals going out of business or being acquired have left insurers with capacity and no where to place it.
The consolidation in the healthcare industry as a result of Obamacare is a major reason for soft insurance markets and a triage and transport mentality in rural areas (but that is another issue!)
I agree that the large health systems merging with and/or acquiring smaller facilities and physician groups are a contributing factor to the current soft market. However, to imply that the only – ie. ‘real’ reason behind the soft market is Obamacare, is incorrect. Contributing factor, yes. But absolutely not the sole reason.
BS, what would you say the percent is on the contribution of Obamacare to the soft market? My estimation is that it has contributed at least 50%. From your reply, you are probably going to say 20% and you would be wrong. By the way, young doctors are not opening practices anymore, just going to work for large practices or working direct for a hospital system. That also, is due to Obamacare.
This article talks all around the real issue which is the retirement, closing of doctor’s practices all around the country due to the mess made with Obamacare. Other doctor’s got out of private practice and went to large practices or into the hospital setting because they didn’t like dealing with the mountain of paperwork and being underpaid by Obamacare & Medicare. No wonder there is a soft market out there.
The MPL market is not soft due to Obamacare. It was soft before Obama even took office. As Nash said, it’s due to the glut of Med Mal carriers fighting to win business and keep what they do have.
Obamacare is a significant to a soft market. Physician group acquisition , hospital closures and acquisitions brought on by Obamacare probably rank as the number one factor for a soft market.
Millions of premium dollars have left the market creating excess carrier capacity. Pretty simple formula, larger capacity equals need to regain market share equals lower prices to write business.
It is a good deal for physicians that have survived Obamacare but it has created a triage and transport health delivery system in rural areas (another topic for another day)
So this is actually not true at all — and the data isn’t diputed amongst MPL leaders.
The reality is Obamacare did not flood the market with sick people who didn’t have insurance and then sue which raises premium etc.
The reality is the “low-deductible” options are still too expensive — so these people aren’t going to the doctor. And when they do the courts have actually used pre-existing conditions against them to lessen costs to the MPL carriers.
The soft market is being driven by tort reform and better risk management. MPL is profitable and we understand it better than we did 10-15 years ago so people want to write it.
The other driver is the cost of medical education/debt. No one can afford to go into private practice facing 250k+ in loans. We are facing an entire generation who only knows employment. The last boomers are hanging onto their practice, but they got to experience the golden years of medicine — and made a huge profit. It’s a whole new world out there.
In response to BS:
Obamacare HAS been a significant contributor to the soft market. The amount of MPL premium exiting the marketplace, brought on by mergers and acquisitions, is a dominant factor.
Physician groups being acquired, hospitals going out of business or being acquired have left insurers with capacity and no where to place it.
The consolidation in the healthcare industry as a result of Obamacare is a major reason for soft insurance markets and a triage and transport mentality in rural areas (but that is another issue!)
Fewer doctors,fewer hospitals to write = softer market with a lot of capacity.
I agree that the large health systems merging with and/or acquiring smaller facilities and physician groups are a contributing factor to the current soft market. However, to imply that the only – ie. ‘real’ reason behind the soft market is Obamacare, is incorrect. Contributing factor, yes. But absolutely not the sole reason.
BS, what would you say the percent is on the contribution of Obamacare to the soft market? My estimation is that it has contributed at least 50%. From your reply, you are probably going to say 20% and you would be wrong. By the way, young doctors are not opening practices anymore, just going to work for large practices or working direct for a hospital system. That also, is due to Obamacare.