Hi Class,
Here is your first blog assignment:
Blog assignment - Go to the NCMIC website. Log on with the username “college” and the password “NCMIC”. Click on the “case studies/articles” selection on the left side of the screen. Next, look under the “fall 2011”articles. Select and read: What Should I Consider with Malpractice Insurance Policy Limits? Q&A
For the blog, answer the following questions pertaining to the article:
1. According to the article, what is the risk of having lower policy limits?
2. Discuss with your group and post what other factors you should consider.
For the blog, answer the following questions pertaining to the article:
1. According to the article, what is the risk of having lower policy limits?
2. Discuss with your group and post what other factors you should consider.
This blog should be commented on by the 1st person in your group. The assignment is worth 2 points and is due on July 16, 2012. **NOTE- All Blogs are due on the Monday following the assignment.
GROUP 19 - The risk of having low policy limits is simple. It leaves the DC vulnerable to losing his/her personal assets. If the plaintiffs' attorney believes they can get more money than the amount a DC's policy is worth, then they will come after the DC's personal assets. The amount a DC would save by having a lower premium is just not worth the risk of losing everything they’ve worked to acquire. Another consideration for a DC is the cost of a defense attorney. The DC should make sure their policy is indemnity only, so that the money for a single claim is used solely to pay any plaintiff rewards and not attorney fees. If the DC does not have indemnity only, plus they have a low premium, there is not a lot of money left over to pay the plaintiff once the insurance company has taken out their defense costs. So this is another reason to have a higher policy limit.
ReplyDeleteWhile having a low policy limit may have been acceptable at one time, the ever rising costs of healthcare and legal fees have made it significantly more risky to continue with that type of coverage plan. DC's need to realize that a lawyer will evaluate the situation, and if they believe that they can get more than the doctors insurance covers, they will do so and the doctor will end up paying out of pocket. Higher limits might come at a price increase, but it will provide the doctor with more room to negotiate a settlement and avoid the court costs and loss of personal assets that are at risk with lower policy limits.
ReplyDeleteGroup 3.1
ReplyDeleteHaving a lower policy risks the DC to losing some of their own assets. I personally think it would be wise to go with at least the 1,000,000/3,000,000 policy because it is better to be safe than sorry. Other factors to be considered are how fast medical expenses can occur, more negotiating power when it comes to a settlement, and to not lose your personal assets.
Group 16.1
ReplyDeleteDue to the escalating costs of healthcare and court awards in physician malpractice suits, having the lower policy limits puts the doctor at huge risk of losing personally. Exceeding $100,000 sounds like a lot, but many of the court awards include future healthcare costs and lost wages in the award as well - this could therefore push into the millions. Also, keep in mind that as the defendant you will need to have the money to pay your defense attorney and that bill will not be cheap. I don't think it would be worth losing your own personal retirement savings or home just to save a couple per cent per year. Personal opinion, I would even look into getting coverage exceeding the 1,000,000/3,000,000 levels.
Group 7
ReplyDeleteIn regard to the doctor in the case, the doctor needs to realize that what once was sufficient malpractice insurance is more than likely not enough in today’s medical world. As previous students have stated, healthcare cost and legal fees are doing nothing but climbing and so is claims being paid out to plaintiffs. As new doctors, it will be important to take a look at previous court cases and their outcomes to make a good educated decision on policy limits. Although having lower policy limits will mean cheaper monthly insurance bills (100,000/300,000 policy plan), the risk of losing personal assets in a court case outweigh any benefit of saving a few dollars every month (in my mind). As indicated by NCMIC, the 1 million/ 3 million policy plan sounds more like the “golden standard” and that coming from a reputable company, I would trust them. Bottom line, as a doctor, I’d be more concerned with having a policy limit that would cover me in any court case.
This comment has been removed by the author.
ReplyDeleteGroup 6
ReplyDeleteThe main risk of having lower policy limits is that the DC will be held liable for anything that exceeds the maximum amount the insurance company will pay for any one claim. The DC must consider the fact that in the long run it is better to pay a higher annual premium to recieve better coverage rather than potentially lose personal assets if found liable. Other factors that the DC has to consider are the cost of a defense attorney and having room to negotiate a payment.
Group 21
ReplyDeleteWhile a lower cost up front may sound enticing when deciding on a Malpractice Insurance policy, it may end up costing the Doctor every asset they possess. When purchasing a Policy it is important to understand what the limits of the policy are, whether high or low. Purchasing a lower limit policy has a possibility of costing the Doctor every penny he/she has, both in the business and in their personal accounts. If a lower limit policy is purchased and the plaintiff feels they have a valid case that may exceed the limit of the policy they can go after the assets the Doctor has worked so tirelessly to obtain. Another thing that needs to be understood when purchasing a policy is the manner in which the payout/settlement is disbursed. Without understanding the disbursement the Doctor could end up spending much more money per incident paying attorney fees and other legal fees than settling with the plaintiff. Knowing what the policy contains is extremely important.
Group 11
ReplyDeleteConsidering how much healthcare costs have changed over the past years, having a higher policy limit may help benefit doctors in the long run. Lower policy limits will more than likely carry the possibility that the doctor’s assets are at risk. While NCMIC is a for-profit organization, they appear to have the best interest of the chiropractic profession at the root of their operations. It does not bode well for any of us, including NCMIC, for chiropractors to fail in practice or risk personal assets by having lower policy limits than are recommended. Higher policy limits will provide room to negotiate and hopefully allow the doctor to settle outside of court. It is also important to consider how large the practice is. $1 million/$3 million should be enough for a chiropractor. However, if they have a larger practice compared with other doctors in the area they may consider a higher policy limit because you may never know what could happen.
Group 17
ReplyDeleteThe big risks as others have stated is the ability for current day settlements to exceed $100,000 exposing the doctor’s personal assets. Policy limits of 1 mil/3 mil or more are just reducing this risk. The other factors that need to be considered by the doctor are what liability he has for other associates, preceptors, massage therapists etc… With higher integration of multi-disciplinary practices, limits of the owning doctor doesn’t just need to cover their recommended limits, but encompass limits high enough for all working employees. In some cases with independent contractors, he may be able to get out of a lawsuit (still using their coverage for the lawyer fees). Another chiropractor in the office is very hard to legally distance themselves as an “independent” and may open liabilities to the owning doctor where a higher policy may be warranted.
Group 8
ReplyDeleteHaving a low malpractice policy limit is very dangerous. It leaves the doctor open for major losses. The idea of having the lowest monthly payments may sound ideal but in reality it is very risky. The insurance company will only pay for a very low amount and if a case occurs where the amount owed exceeds the coverage amount the doctor now has to pay out of pocket. This can be destructive to a chiropractic practice especially if the practice is new. So in the case of having a low malpractice policy it is safe to say that is worth paying the extra monthly amount to have the higher policy limit. Even if a chiropractor is just starting out with a new practice and money is tight malpractice coverage is not a place to cut corners. Having the higher coverage will protect against most all cases a chiropractor will see. It will also provide the doctor with some negotiation room which would definitely not be available with a low coverage limit. As stated by other classmates the higher limit will also assist in paying for an attorney and save the doctor money on the legal fees. Another way to look at is that it provides the doctor with some peace of mind. There are a lot people out there who are looking to make money off of doctors and having that higher coverage limit will allow the doctor to not be as worried about every new patient he sees.
Group 4
ReplyDeleteIt seems the general consensus is that carrying an insurance policy with the 1,000,000/3,000,000 limit is the safer way to go. While in the past carrying a 100,000/300,000 may have been acceptable, in today's market it is not financially responsible. Today's doctors deal with more malpractice lawsuits, higher invovlment with 3rd parties, and higher healthcare costs. A chiroprator who carries a lower insurance policy could end up paying a settlement out of their own pockets if they are faced with a lawsuit settlement greater than their policy limit. Insurance is for the worst case scenario, whether it's auto, home, fire, or life insurance, so it should be a priority as a doctor to cover yourself with an insurance policy that will protect your personal assets and reduce out of pocket risk.
Group 15
ReplyDeleteHaving the lower policy limits could involve your personal assets when you exceed limits in a court case involving your clinic. Limits on your policy of 100,00/300,000 is just too low with the higher amount of malpractice claims emerging you should have a policy with coverages of 1,000,000/3,000,000. If your coverage limits are too low in comparison to the plaintiffs requests then the doctor may have incentive to settle.
Group 20
ReplyDeleteThe risk of having a low policy limit is the possible lose of personal assets to compensate a claim. With the rise in healthcare cost $100,000 is not always enough. The limit is for negotiation and if the limit is low for the claim it will limit the attorney’s ability to negotiate properly.
We need to also consider the cost of the attorney and lose of revenue due to court dates and possibly bad press. Having the negotiation power allows it to stay out of court and out of the public eye.
We have similar feelings about the topic at hand; it is best to make sure that you carry enough malpractice insurance. In reality there is no such thing as to much insurance; however it is advantages to keep your premium as low as possible. Our group feels that the 1,000,000/ 3,000,000 policy is the one that will best fit our needs in the near future. In agreeance with the posting made by SB “Having a lower policy risks the DC to losing some of their own assets.” and we feel that the little money you will save in lower premiums is not worth the potential debts that you can be held accountable for. We discussed the fact that some states do not currently require malpractice insurance; however we all believed that it would not be wise to go that route especially in today’s litigious society.
ReplyDeleteGroup 5:
ReplyDeleteThe risk of having low policy limits can be potentially devastating to a Doctor's personal assets. Carrying a low policy limit may look good on a monthly ledger sheet, but the risks far out weigh the benefits. In the event of a law suit the doctor has little wiggle room to negotiate a settlement with the plaintiff. If the doctor's policy has few options to settle the damages then there is little incentive for the plaintiff to settle out of court. A doctor will be held responsible for any damages not covered by their policy once the suit goes to court. This may require liquidation of all of the Doctor's assets depending on the amount of damages rewarded to the plaintiff.
Our group also discussed the necessity legal fees being covered by malpractice insurance. If the case goes to trial it has the potential to be a drawn out process with expensive legal fees. The doctor also has to be present at court dates which will cut into their revenue stream. We also discussed the matter of having a greater ability to negotiate settlements through a larger policy limit. Settlements can keep the doctor out of the courtroom as well as limit the amount of negative attention recieved by the incident.
Group 2.1
ReplyDeleteWe agree with the idea that in todays society it is quite irresponisible to have the low end limits of malpractice insurance. One of the things that crossed our minds was how do lenders feel about someone carrying potentially inadequate amounts of insurance coverage malpractice or otherwise. Are they less likely to offer loans if they feel that someone is not making insurance coverage limits strong enough to protect hteir assets?
Group 12
ReplyDeleteThe risk is that you are personally liable for damages above your policy limits.
Other factors to consider are A) 3rd party payers may require a certain level of insurance and B) a higher limit can allow settlement negotiation to avoid a trial.
The most common insurance level is 1 million/3 million.
The major point of carrying insurance is to protect our own personal assets from being drawn upon in a lawsuit or accident. This article points out that 100000/300000 may be an inadequate amount of coverage. Carrying such a low policy does not prevent or deter people from suing for more than you carry in insurance. Trying to save money by not carrying a policy sufficient enough to protect ones personal assets defeats the purpose of insurance in the first place. 1mil/3mil seems to be the suggested amount. We are cautious about this information as it is
ReplyDelete1. Printed by an insurance company with an interest in selling this product
2. An opinion piece with no objective data or facts
3. Has no author
Group 10.1
ReplyDelete"The reality is that lower policy limits can expose a D.C.'s personal assets during a malpractice suit."
That pretty much sums it up. If you're getting sued the plaintiff is going for everything they can get. If you're found guilty and that ends up being more than what your malpractice insurance will pay for the incident, it's not a case of "we'll call it even," you have to pay the remainder.
Cost is something that we all have to consider when we start paying for our malpractice insurance. Some might feel confident in their diligence/intuition and go with a cheaper policy, others might opt to pay a little extra for the reassurance that they'll be covered if the unthinkable happens. It's kind of like gambling, but playing a game where you can count the cards to some extent. You just have to accept the risks involved and do what you feel is best for you.
Also, as group 18 pointed out, this appears to be a biased source of information without data to back it up.
Group 14
ReplyDeleteHaving a lower policy limit seems like a good idea especially for up and coming D.C.'s like ourselves but it is just not worth risking your personal assets to save a few bucks on your premium. It is irresponsible as a Dr. to not carry a sufficient amount of malpractice insurance. Reality is that accidents and mistakes will happen no matter how careful you are. As a D.C. you don't want to feel scared of treating a patient to your full extent because you are not carrying a sufficient amount of malpractice insurance.
Group 13
ReplyDeleteAs doctors, having a malpractice lawsuit filed against us is almost given fact. It will most likely happen at some point in our careers and it is important to protect our assets. Having a lower policy limit of $100,000/300,000 means that the money the insurance company will pay in the event that you lose or settle a case is, at maximum, $100,000 per lawsuit.
Patients and lawyers in malpractice suits are going for the max amount allowed by law to cover for pain, suffering, extent of injury, lost wages, etc., and that can far surprass a $100,000 payout. When a settlement exceeds the policy limit it falls to the doctor to pay the difference out of pocket, including any extra attorney fees.
Everyone wants to be frugal, keep overhead low and have faith that if they educate patients and do their job well they will never face having a malpractice lawsuit in their future. However, the possibility of being sued exists and it is important to protect all that we work so hard for.