Wash. Med-Mal Insurer Seeks Premium Drop

Washington’s largest writer of medical malpractice coverage for physicians and surgeons has called for a 12.5 percent overall decrease in premiums for 2008 following what appears to be a record-setting year of profits for the company in 2007. The rates, effective Jan. 1, 2008, were announced by Physicians Insurance, the Seattle-based company that provides coverage for approximately 62 percent of the physicians in Washington who purchase medical malpractice insurance from a regulated insurer. Although base rates remained stable, the company’s action will reportedly result in premium reductions of up to 20 percent for physicians with good claims experience. The declining cost of medical malpractice insurance in Washington seems to reflect a trend seen in many states across the nation. However, unlike other states where tort reform advocates have drawn a direct correlation between declines in premiums and tort reform legislation, Washington’s doctors are reportedly benefiting despite the failure of a tort reform initiative at the hands of voters in 2005. Through the first nine months of the year, Physicians Insurance reported profits totaling $17 million.