Recent Changes to the New York Med Mal Ins Market
Although it’s one of the largest states from the med mal ins premium point of view, New York can be a very frustrating state when looking for med mal ins. Doctors have limited choices for New York med mal ins and the state needs to see some reform in order to have a more competitive environment. But, we are hopeful for the future for a couple of reasons that we will discuss later in this post.
The two main admitted carriers (See our Med Mal Ins Q & A page for our glossary of terms) in New York state are PRI and MLMIC. (Most states’ physicians will have access to 10 or more admitted carriers.) Because of the quirkiness of New York state overall, the only other type of med mal ins carriers are risk retention groups (RRGs). The RRGs play an important role in creating a competitive market and offering an alternative to physicians. Although the RRGs are not admitted, and considered a surplus, or non-admitted carrier, they still offer an excellent alternative and should not be dismissed or overlooked. It’s important to note that most major New York City-based hospitals do not accept coverage by RRGs. Before you shop for coverage with risk retention groups, you should contact your hospital’s risk management or credentialing groups to see if they accept risk retention group coverage.
But, there’s some good news. The outlook for the future is encouraging. For instance, Med Pro, from Berkshire Hathaway, has entered the state in the form of its own RRG. Because the Med Pro policies are written on Med Pro paper, this means that physicians have the backing of a company with over $60 billion in cash. Med Pro was unwilling to enter New York state as an admitted company but was willing to enter the state as an RRG. And, in the past week, we have learned that another major national med mal ins carrier, Coverys, is also in the process of setting up an RRG in New York state and we think that other major carriers are not far behind.
Because the market is always changing, if you are a New York physician, it’s always important to shop for coverage every year. Contact us today.