N.J. Distributes $16.4M in Medical Malpractice Insurance Subsidies
New Jersey Banking and Insurance Commissioner Steven M. Goldman reported that the state began sending subsidies of $16.4 million last month to eligible medical practitioners in certain high-risk specialties.
The subsidy payments are being distributed to nearly 1,200 physicians under a program that seeks to ensure affordable medical care for New Jersey residents in part by helping physicians in certain high-risk specialties cover the cost of malpractice insurance. Those eligible include doctors in obstetric/gynecology, neurosurgery and radiology.
Payment amounts are based on a number of factors, including average expenditures for medical malpractice liability insurance among physicians in the eligible specialties. Qualified neurosurgeons will each receive $20,689; obstetric/gynecologists will each receive $18,582; and diagnostic radiologists will receive $6,678.
Recipients of the subsidies must commit to practice in New Jersey at their then-present practice level in their primary specialty for at least two years following receipt of their subsidy.
The fund is paid for through an assessment on state licensed physicians, lawyers, employers subject to the state’s unemployment compensation law, and other medical professionals, with 65 percent of the fund dedicated to premium relief. The remainder was earmarked for hospital Charity Care, NJ FamilyCare, and student loan reimbursement for obstetricians and gynecologists committed to practicing in the state.