Physicians in New York State may face more exposure when it comes to malpractice claims because of changes in that state's medical malpractice market, according to a Politico New York report.
The market in New York is shifting dramatically, as local companies compete with out-of-state companies that come in with a big advantage--they don't have to pay into a guaranty fund that acts as a safety net and federal law exempts them from much of the state's regulatory oversight, the report said.
The changes have led to concerns that physicians could be more exposed for malpractice claims than they realize, and in some cases personally liable, according to the article. Medical errors are the third leading cause of death in the U.S.
.New York has five admitted malpractice carriers that pay into a fund in case one of the companies fails. In that case, costs are passed to the other insurers in the state. But out-of-state insurers, known as Risk Retention Groups, are coming in at a rapid pace and do not have to pay into the guaranty fund. They can charge less than the New York carriers and are regulated by their home state, not the New York regulations.
"Not all Risk Retention Groups are created equal," Jeffrey Bloom, a personal injury attorney, told the publication. "We're all concerned that doctors don't have adequate protection."
To learn more:
- read the Politico article