The ways things are going at the moment the chances of reducing the amount that individuals pay to Medical Defence Organisations for medical indemnity or malpractice cover, over the next few years, are very slim indeed. It seems that the Consultants who provide a good professional service to their patients without any problems are being penalised by those that are not so good and do have problems. A fairly sweeping statement, but one I am sure that is at the root of a problem that will not go away.
Why should trouble free consultants not benefit individually when they have an clean track record? Does this ring a bell – do the words co-operative or insurance spring to mind? They should do because this is one of the simple definitions defining co-operative and insurance. But there is light years difference when comparing these two words. One gives you a guarantee – the other does not.
Which one would you choose and which one do you think costs less? You would have thought that the medical indemnity offered by the cooperative would cost less. In fact it is the insurance guaranteed cover that in most cases is cheaper. How can this be? It is not rocket science! Individuals are assessed as individuals and from there insurers are able to establish the “risk factor”. If say a consultant has not had any claims he/she will obtain a better premium than somebody (in the same speciality) who has had claims. The greater the risk to the insurers the greater the premium will be.
The other point to make is that the insurance cover gives you “a contract” that states exactly what you are insured against and the amount that you are insured for. The other is discretionary. Insurance provides guaranteed recourse options, the other does not.
How long will the “bulk assessment” continue? The answer is – so long as the people in the co-operative are prepared to fund the people who make claims. There is a good comparison in everyday life – Would you expect to pay the same premium, having not made a claim for the last 10 years, as a newly qualified driver driving the same type of vehicle as you? I suspect you would not be too happy if you did.
So, how do you feel about the amount you pay for medical indemnity cover?
Contact Medical Insurance Consultants to discuss your medical indemnity options.