N.Y. Med Mal Premiums Jump by Geography

Medical malpractice premiums for New York physicians in some specialties can vary by more than $100,000 depending upon where in the state they practice, with upstate physicians generally paying less than others.

For example, obstetrician/gynecologists in Rochester may pay $30,084 while their Long Island counterparts face a standard rate of $143,148, according to a report by Excellus Blue Cross Blue Shield.

The report shows that the standard premium for an internist in Rochester ($5,642) is 375 percent lower than for an internist practicing on Long Island ($26,847).

A similar differential to that for internists exists for other types of physicians. For example, a general surgeon’s premium rate in Rochester is $18,026, contrasted with a Long Island surgeon’s rate of $85,772.

The report indicates that New York State is neither among the highest nor the lowest in the country for medical malpractice premiums. Physicians in the downstate region have premiums that are close to the highest five states (identified as Florida, Michigan, Illinois, Ohio and Texas), while physicians from upstate regions pay premiums that approximate the lowest five states (Wisconsin, Idaho, South Dakota, Minnesota and Nebraska).

The data is based on standard premium rates for the year 2005 of the Medical Liability Mutual Insurance Co., which insures most physicians in the state. The state is divided into seven rating territories.

“What the facts show is that upstate physicians generally have more favorable premium rates than downstate, and in some cases, the rates are close to states that have among the lowest premiums in the country, based on data we’ve seen from national surveys,” said Dr. Martin Hickey, Excellus BCBS senior vice president.

Standard medical malpractice premiums are offered in occurrence policies that provide up to $1.3 million liability coverage for a single injury and up to $3.9 million for a single policy year. Many physicians qualify for discounts from the standard rates.

Nearly all classes of physicians covered by MLMIC experienced a 7 percent increase in standard premiums as of July 1, 2005.

According to MLMIC, there were 932 physician claims closed in 2000, reflecting losses of $281.4 million for an average loss of $301,974 per case. In 2004, there were nearly the same number of claims closed — 931 — but they reflect losses of $362.2 million for an average loss of $389,089 per case, or a 29 percent growth in costs during the five years.