How to Lower Doctor's Malpractice Insurance

Malpractice insurance protects doctors from lawsuits.

After medical school fees, malpractice insurance is one of the biggest financial drains on doctors today. Often costing hundreds of thousands of dollars per year, medical malpractice insurance protects doctors from the lawsuits of unsatisfied patients and grieving family members. It also covers them in case of actual medical error. Since 2000, medical malpractice insurance rates have skyrocketed, causing a panic in the medical community. Healthcare providers have had to raise their rates and cut back on the services they offer in order to manage the costs. Finding inexpensive, comprehensive malpractice insurance is an important task for any medical professional.

Instructions

1. Shop around. Private insurers sell medical malpractice insurance. Since they are doing business, you may find that getting several quotes--and discussing those quotes with competitors--will enable you to get a reduced rate on your policy. Companies want to remain competitive with each other, so they will work to keep you as a client as long as you remain reasonable in your expectations.

2. Move your practice to another state. Different rates apply for doctors in different areas; by moving your business, you could qualify for malpractice insurance at an extremely reduced cost. Kansas, for example, is known to have very low rates on malpractice insurance. Take into account, however, that changing your location could also lead to a diminished client base. Be sure that the rewards of lower malpractice insurance fees are not offset by reduced earnings in patient fees.

3. Petition your insurance company to lower its prices as a result of tort reform. Laws are being passed that limit the amount of money a patient can receive in pain and suffering, but the insurance companies have not passed that savings on to their consumers. Get a group of doctors together to write letters and make phone calls. You could even band together and offer to take your business to the company that is willing to take the new tort reforms into account when setting its prices.

4. Pay your premium in a lump sum at the beginning of the year instead of making quarterly payments. Some companies offer a discount of up to 5 percent on policies paid up front. If your company doesn't offer a discount, try to negotiate one.

5. Arrange to have a deductible on your plan. You can save 5 to 10 percent each year if you do. Be careful, though, that you can afford to pay the deductible if you are taken to court. The best thing to do is to take the deductible on the awards that will be paid, but to insist on first-dollar coverage for attorney's fees.

References

• The Joplin Globe: Lower Malpractice Lures Doctors Across State Lines
• WCPN: Doctors Take on High Malpractice Insurance Costs
• Physician's Practice: How to Get Lower Malpractice Insurance Rates