Demystifying Pricing

At PPA, we understand you want a “great deal” when purchasing your healthcare malpractice insurance. But, if you’re involved in a claim, not only are your career and reputation at stake, but your personal assets are, as well.

When considering healthcare malpractice coverage, we encourage you to review price in the context of value. Your selection of company and coverage will have a big impact on whether you’re getting thebest coverage for your money.

Why the Lowest Priced Coverage May Not Be the Best Value

1. The Low Price May Not Account for Unexpected Claims.In 2011, the average healthcare malpractice claim payment made by MedPro nationwide was approximately $325,000, an amount most healthcare providers would find difficult, if not impossible, to pay on their own. As a result, your malpractice insurance company’s financial strength is vitally important. The strength of any insurer is dependent upon that insurer charging the right price for its product. Clearly, if an insurance company underprices its coverage, that company could end up with insufficient resources to pay claims.
2. The Low Price May Indicate You Don’t Have Pure Consent Authority When Resolving Claims.MedPro believes you should decide whether to settle your healthcare malpractice claim. That’s why our policy gives you that right — no exceptions. Other companies policies appear to provide the same protection; however, when you read the entire consent provision you might find exceptions which actually give consent authority back to the insurance company.
3. The Low Price Does Not Support Industry-Leading Claims Defense.Good legal protection is expensive. MedPro utilizes the nation’s best healthcare malpractice defense attorneys, and hiring those attorneys—along with the nation’s best expert witnesses—is expensive. But we believe you deserve the best defense available. MedPro has never and will never compromise defense quality to save a few dollars, and our track record indicates that approach is in your best interest.

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4. The Price is Low Because Coverage is Limited.Healthcare providers should have access to the industry’s most comprehensive coverage options. Make sure your company offers:
   • Three coverage types: occurrence, claims-made and convertible claims-made.
   • A pure consent to settle provision.
   • A free extended reporting period (“tail”) at retirement after just one year of coverage and a mature retroactive date.
   • A free tail for death and disability.
   • Additional coverages, including: cyber liability, billing error and omissions, as well as defense during administrative hearings or state licensing board actions.

   Bottom Line: No other company beats MedPro’s comprehensive coverage options.

5. The Low Price Reflects Only Current Market Conditions—Not a Long-Term Commitment.The healthcare malpractice insurance market is cyclical, and the past few years have given rise to fewer claims than in decades past. This insurer-friendly environment makes the market attractive for start-up companies.

   But, it’s difficult to establish a price that combines strong defense and affordability. When conditions are less favorable for making money, many of those same startup companies might leave the healthcare malpractice insurance market as quickly as they arrived, thus abandoning you and forcing you to shop for a new insurer.