Nevada Insurance Commissioner Alice A. Molasky-Arman has approved new rates and rating rules for obstetricians for American Physicians Assurance Corporation (“APAC”).
Molasky-Arman said, “I applaud the company for agreeing to allow obstetricians the choice of whether to be written under the new rates and rules or to continue under the prior rates and rules. The new rules are a further step toward alleviating the obstetrical services shortage that Nevada, and especially Clark County, is experiencing.”
Obstetricians that performed fewer than 125 deliveries and thus qualified for the lowest rate under the prior rates and rules would see their premium increase 33 percent at renewal under the new rates and rules. Because the new rates and rules will result in a significant rate increase for these obstetricians, APAC has agreed to allow its current policyholders to continue to renew under the old rates and rules. Under the new rate structure, obstetricians would be able to
increase the number of deliveries from 125 to 224 without further penalty. An obstetrician performing 125 or more deliveries under the prior rules will see rate decreases ranging from less than 1 percent for 125 to 175 deliveries up 20 percent for 176 to 224 deliveries. An obstetrician currently doing 281 to 300 deliveries will see a 5 percent rate decrease.
The company has also agreed to offer existing policyholders the option of canceling their policies mid-term and renewing under the new rate structure.
The new rates and rules are based on those recently approved for Nevada Mutual Insurance Company and place significantly less emphasis on the number of deliveries.
The overall impact of the approved changes is not known since it depends on the number of obstetricians that elect the new rating structure and the number that remain under the prior rating structure.
The new rates and rules become effective May 1, 2003 for all new business and any renewal business that elects the new rates and rules. The company insures 145 physicians, including 39 obstetricians, all of which practice in Clark County.
Topics Nevada
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