Thursday, October 15, 2015

Working For Insurance Companies


Medical Liability Monitor released its statistics on the cost of medical malpractice premiums for 2015. It said that premiums have stayed relatively flat for the past year after a slow decline over the previous seven years. The premium changes however aren't spread uniformly. They decreased slightly in the Northeast, Midwest, and West, up 0.9% in the South, and up 9% in Texas, North Carolina, and Georgia. (Whatever happened to the medical malpractice reforms in Texas? Weren't they supposed to deter malpractice claims and decrease insurance costs?)

What astonished me the most was the chart on the difference in prices between the localities with the cheapest insurance premiums and the most expensive. These prices are for $1 million for individual claims and $3 million for any given year. For internists, malpractice insurance only costs $3,375 per year in Minnesota. However if you live in Miami-Dade County, it will set you back $47,707. For general surgeons, the cheapest insurance can be found in Wisconsin, $10,868. However if the surgeon lives in Miami-Dade County, The Doctor's Company will want $190,829 for the same policy. Now if you're an OB/GYN, better move on over to central California, where insurance only costs $16,240. You probably wouldn't want to live in Long Island, New York where it will wring $214,999 from your wallet. I'll repeat that. In Nassau and Suffolk counties on Long Island, an OB/GYN will need to make an after tax income of $215,000 just to buy malpractice insurance.

How can any doctor make enough money just to buy insurance? This doesn't even count all the other insurance that he will need such as health, life, property, etc.  And let's not forget that Uncle Sam wants his fair share from the evil 1% who are obviously preventing the other 99% of the population from a good living because of the "rich".

According to the Medscape Physician Compensation Report for 2015, OB's make $235,000 in the Northeast. General surgeons make $323,000 in the Southeast. Can insurance cost so much that it take away 90% of a doctor's income? How can one make a business case to work there? It's no wonder some physicians elect to go bare and not carry any malpractice insurance at all. It keeps the lawyers from the money grab of frivolous lawsuits while allowing the doctor to maintain a decent lifestyle from all the money they save by not buying insurance. Sounds like a plan.

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