Physician-owned insurer promises no base-rate hike for 2005
NEWS IN BRIEF — Posted May 9, 2005
Physician-owned ISMIE Mutual Insurance Co., which provides liability insurance to more than 13,000 Illinois physicians, announced last month it would not raise base premium rates for 2005. The company raised base rates 35.2% in 2003 and an average 7.4% in 2004.
Company officials cautioned that the decision to not increase base rates in 2005 was not necessarily the start of a trend. But ISMIE Mutual did see a 4% reduction in the number of claims reported per 100 policyholders last year.
ISMIE Mutual and the Illinois State Medical Society are lobbying for comprehensive tort reform in the state, including a $250,000 cap on noneconomic damages. Illinois is one of 20 states the American Medical Association lists as being in crisis because of medical liability premium costs.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/05/09/prbf0509.htm.