Last week, the California Department of Insurance announced that rate reductions by two medical malpractice insurers will save policyholders nearly $4 million annually in premiums, Healthcare Finance News reports.
Medical Protection Company and NCMIC Insurance Company joined three other insurers -- NORCAL Mutual, The Dentists Insurance Company and The Medical Insurance Exchange of California -- that recently lowered malpractice premiums.
Last year, state Insurance Commissioner Dave Jones (D) required California's top six malpractice insurers to submit rate filings to the Department of Insurance.
Jones reviewed the filings and called for rate reductions. According to DOI, five of the insurers responded by substantially reducing premiums.
DOI said the reductions resulted in nearly $23 million in total savings to medical providers.
Details of Recent Reductions
The recent malpractice premium rate reductions include:
- MedPro's 11.9% rate reduction for its physicians and surgeons program -- effective June 1 -- resulting in more than $3 million in savings for policyholders; and
- NCMIC's 7.25% rate reduction for chiropractors -- effective July 1 -- resulting in slightly more than $500,000 in savings for policyholders (Irving, Healthcare Finance News, 4/16).