Indiana Medical Malpractice Insurance

• Most Common Limits of Liability: $400,000/$1,200,000
• Major Malpractice Insurers:
  • Medical Protective Co.
  • ISMIE
  • ProAssurance Indemnity Co.
  • IU Health RRG Inc.
  • Indiana Healthcare Reciprocal RRG
  • Continental Casualty Co.
• Cost of Medical Malpractice Insurance: Moderate

Indiana has an enviable medical liability climate with medical malpractice premiums that are considered inexpensive when compared to neighboring states. Indiana was one of the first states to carry out comprehensive reforms to its medical liability system through the Indiana Compensation Act for Patients (INCAP) of 1975. INCAP capped total damages at $500,000 (since increased to $1.25 million, the cap is set to increase to $1.65 million in 2017 and $1.8 million in 2019) and created one of the first patient compensation funds (PCF). A patient compensation fund is a state-established liability funding mechanism, providing medical malpractice coverage in excess of the primary insurance requirements of the state’s healthcare workers. In the case of Indiana, that primary requirement is $250,000 worth of malpractice insurance. Nearby states like Illinois, Michigan and Ohio have no patient compensation fund, so most physicians carry at least $1 million in malpractice insurance. The patient compensation fund arrangement protects Indiana physicians from paying the exorbitant insurance rates found in neighboring states.

Despite these positive measures, there are still potential problems in the Hoosier State. According to a May 2016 article from the Indianapolis Business Journal, physicians and hospitals are facing increased fees to continue funding the Indiana Patient’s Compensation Fund. In recent years, the fund has had to provide large payouts to malpractice victims, including $66 million in 2013 to more than 300 victims of an ear-nose-throat specialist, who performed unnecessary or negligent surgeries and was profiled on “America’s Most Wanted.” In total in 2013 the fund paid out $176 million, the most since it was created in 1975. Though the fund is still solvent, the balance in it has swung widely in recent years, dipping as low as $5.3 million in 2003 and as high as $189 million in 2009.

In addition to total damage caps and a patient compensation fund, Indiana has added collateral source reform, limits on attorney fees, allows for periodic payments and has an apology law. Recent efforts have focused on increasing the damage cap to keep pace with inflation, with increases approved in spring 2016.

On July 1, 2019, Indiana decreased the surcharge rates for physicians by 10.9 percent, and rates for hospitals will decrease by 12.3 percent, which experts say will result in an approximate $20 million savings for the healthcare community. This is the first decrease in surcharge rates since 2012.

• Damage Caps? Yes, the current total damage cap is $1.25 million and is set to increase to $1.65 million in 2017 and $1.8 million in 2019.
• Patient Compensation Fund? Yes
• Apology Law? Yes, statements, gestures, acts, conduct or writing expressing sympathy, apology, or a general sense of benevolence can be made in the event of a loss, injury, pain, suffering death or damage to property. Statements of fault are admissible in court.
• Collateral Source Reform? Yes, collateral sources are to be considered when determining awards, especially any award that is alleged to be excessive. Life insurance, death benefits, benefits paid by the claimant or family and payments made by the state or the U.S. prior to the trial are not to be considered collateral sources of payment.
• Periodic Payments? Yes, periodic payments are allowed, but not required.
• Joint Liability Reform? No
• Limits on Plaintiff Attorney’s Fees? Yes, attorney fees are limited to 15 percent of any damages awarded under the Patient Compensation Fund.

Overview

Medical malpractice rates in Indiana are moderate. Rates have held steady or decreased in recent years. Current premiums for many Indiana physicians might be half or less what they would be in parts of neighboring states like Illinois and Ohio.

Get Historic Rates

By combining our efforts with those of the Medical Liability Monitor – the nation’s leading independent source of Medical Liability Insurance news, as well as the political, legal and risk management issues that affect the healthcare industry – we’ve published historic rate data for every county in the Hoosier State. You can view all the rates by completing the three simple steps on the left of this page. You’ll find the insights offered by this information invaluable when making your decision on your medical malpractice insurance coverage and carriers. This is only one of the many reasons that Cunningham Group Insurance has become the preferred online source for Indiana physicians, healthcare professionals and medical groups looking to find the best coverage and lower their medical malpractice insurance rates.

Coverage by Indiana County

Rates in Lake County and Porter County are higher than the rest of the state. These two counties border northeastern Illinois, and include parts of the suburban Chicago area, as well as the cities of Gary and Hammond.

Indiana State Medical Association
Indiana Department of Insurance
Medical Licensing Board of Indiana
Indiana Osteopathic Association
Indiana Medical Group Management Association
Indiana Medicaid
All MD Indiana Healthcare Defense Attorney Listing