MD. WEIGHS MED-MAL MEASURE

November 8, 2004

Legislation designed to offer doctors immediate relief from increases in malpractice insurance premiums and hold the line on future rate hikes has been presented to the Maryland General Assembly leaders by Gov. Robert Ehrlich. “It is, I think, a very sound bill,” the governor said. He indicated his willingness to accept changes to meet legislative objections. “I would hope there would be a lot of cooperation with House and Senate leaders,” Ehrlich said. However, the measure got a frosty reception in Annapolis. Senate President Thomas V. Mike Miller labeled Ehrlich’s latest plan as “a work of fiction” and “a completely different bill” from the one he, the governor and House speaker agreed to several weeks earlier. Asked if he sees any hope of a special session to deal with the state’s malpractice insurance crisis, Miller responded with a curt, “No.” House Speaker Michael Busch agreed there are major problems with the governor’s proposal, but held out hope he, Ehrlich and Miller can work out an agreement that could lead to a special General Assembly session next month. “It is a starting point for negotiations,” Busch said of the governor’s proposal. Maryland’s largest insurer for doctors, Medical Mutual Liability Insurance Society, raised rates 28 percent last year and will increase them again by 33 percent in premium notices going out this month. Doctors have warned they will retire early, cut back their practices or move out of state unless Maryland steps in quickly to reduce premiums. One part of Ehrlich’s plan would incorporate Miller’s proposal to forestall the 33 percent premium increase by having the state underwrite losses to insurers if payments of malpractice claims outstrip premiums. He also wants to restrict malpractice cases to guard against future premium hikes.

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Insurance Journal Magazine November 8, 2004
November 8, 2004
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