The NSLIJ HealthSystem is investigating
the formation of an RRG to lower premiums for doctors. Mr. Michael Dowling,
the CEO of the System, is working with the Staff Society to form a Risk Retention
Group. This is essentially its own insurance pool of doctors. The goal, as
outlined by Mr. Dowling, is to offer stability and control over medical malpractice
insurance. It is, indeed, a big step. Pros and cons are outlined in these
two fact sheets.
A new FAQ was sent on 1/23/08 and is reprinted
here.
At the Executive Committee meeting on 11/18/07, Mr. Don Haber
presented some features of the VAP RRG. These included:
- It would be a claims made policy
- Savings would be approximately 17.5% over current PRI and
MMLIC premiums
- Approximately 90% of the staff would be eligible
- Effective date would be 1/1/08
- Premiums would be grouped as either gold, silver, or bronze
- The group is Vermont based for accountability
- Many issues remain unsettled and are being investigated
At the Executive Committee meeting on 12/16/07,
the CEO from PRI, Anthony Bonomo, spoke about issues in malpractice insurance.
He described how rates are controlled by the New York State Insurance Department.
Rates are kept as low as possible to maintain solvency of the insurance companies.
He spoke negatively about the RRGs, saying that they are high risk and unregulated,
with no excess liability plan. He would like to see variable rates by individual
physician risk, just as automobile insurance is written. On tort reform, he
sees little progress on pain and suffering caps. He feels strongly that stronger
policing is needed by doctor groups and the Department of Health (OPMC) to
remove doctors with frequent and highly paid claims from the pool.
