About Malpractice Insurance

Inadequate treatment provided by a doctor is called malpractice. When patients are injured due to receiving untimely or incorrect treatment from their doctor, they can sue the doctor. Doctors purchase medical malpractice insurance in order to offset any liability claims made by these patients. Hospitals also purchase malpractice insurance to cover both the hospital and the staff.

Premiums

The rates that doctors pay for their malpractice insurance coverage vary widely due to different policies among insurers. Some malpractice insurance companies take experience into account, while others do not. It is common, however, for a malpractice insurance company to increase premiums based on the number of claims a doctor has had.

Defensive Medicine

The fear of a malpractice claim, and increased premiums as a result, can cause physicians to treat their patients differently. Medical care that is provided based on fear of a potential malpractice claim, rather than for the patient's health, is called defensive medicine. Examples of defensive medicine can include excessive testing and additional office visits.

Benefits

Malpractice insurance allows doctors to practice medicine without the fear of being bankrupted in the event of a patient claim. Even if the doctor is cleared of the charges, the legal fees can be exorbitant. Malpractice insurance covers the legal fees, as well as any damages to be paid to the injured patient.

Exemptions

Military doctors and other doctors employed by the federal government do not need to purchase malpractice insurance. The government insures itself against those claims, so the claim is not the responsibility of the doctor. Doctors employed by individual state governments may also be exempt, depending on their individual circumstances.

Considerations

Medical malpractice claims affect everyone in the health care community. Malpractice claims, even when resolved in the physician's favor, are expensive for the malpractice insurance company. The cost of the malpractice claims is passed on to all doctors through increased premiums. Doctors then pass on the cost to consumers through increased rates.