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Sunday, December 17, 2006

Maryland doctors get relief on malpractice rates

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BALTIMORE (AP) -- The largest medical malpractice insurer in Maryland is looking to drop premiums by 8 percent for next year in what would be its first rate reduction since at least 1992.

The potential premium cuts by Medical Mutual Liability Insurance Society of Maryland would not be seen by doctors for payments due this month, because the state subsidies go down every year over the four-year life of the program, canceling out the premium-rate decrease.

However, a reduction in premiums would be a big difference from 2004 and 2005, when premium increases sparked protests by doctors and put the General Assembly in a special session to address rising rates.

A drop in claims is the reason Medical Mutual is seeking the premium cuts, the Baltimore Sun reported.

Rate increases of 28 percent and 33 percent in the past two years led lawmakers and the governor to call a special session in Annapolis.

The special session created a battle between Gov. Robert L. Ehrlich Jr., a Republican who wanted tighter rules for malpractice claims, and Democrats.

Both sides say the break in rising rates makes it unlikely there will be more action on the matter in next year's legislative session.

State Sen. Brian E. Frosh, a Montgomery County Democrat who heads the Judicial Proceedings Committee, said the rate reduction shows that "the huge run-up in rates was based on a one-year blip in claims."

"Today, it looks like that was anomalous, not a trend," he told the Sun.

State Sen. Andrew P. Harris, a Baltimore County Republican and anesthesiologist who supports changing the rules, said the matter is "a dead issue," until there is "another crisis."

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