With few options for medical malpractice coverage left, Pennsylvania doctors are expected to flock to a new malpractice carrier that received state clearance to sell insurance last week.
On of Dec. 11, Millennium Insurance Co., based in Newtown Square, Pa., was given approval to switch from a risk retention group to a commercial carrier, the Pennsylvania Insurance Department reports.
The change means that Millennium's 200 insured doctors don't have to invest in the company to hold a policy, says Sheri Putnam, executive director of Bucks County Physician Hospital Alliance, a physician hospital organization in Doylestown, Pa., which owns the company along with several individual investors.
Putnam tells Modern Physician that the new insurer has enough reserves to offer policies for 400 more doctors beyond the number in the original risk retention group.
She says she expects the policies to go fast, adding that a few large groups of 40 to 50 doctors each already have shown interest in signing up.
Putnam says 60% of malpractice policies in the state will come up for renewal Jan. 1, and one of the largest malpractice carriers in the state, Florida-based FPIC, is exiting the state as of Jan. 1.
She says there are still two to three other commercial insurers left in the state, but they are not accepting doctors in some specialties. There are also a few new risk retention and reciprocal insurers, but they require doctors to finance the company, she adds.