AMA Policy Paper Shows Hike in Medical Liability Premiums

Being a physician in the District in the 21st century means being on the front line of the most pressing public health issues in the world. In our small geographic boundaries, physicians help address issue found in every state all in one area. The issues are too lengthy to list on one webpage but physicians are on the front lines of addressing health issues for all District residents.

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AMA Policy Paper Shows Hike in Medical Liability Premiums

Mar 31, 2021, 10:00 AM by Robert Hay

Rate increases could indicate a hard market for medical liability insurance, which is especially troubling post-COVID-19.

AMA research shared widely shows that medical liability premium changes in select markets portend increases across the country.

The Policy Research Perspective (PRP), seen here, analyzes data from the Medical Liability Monitor. To quote the PRP, MLM "is considered the most comprehensive source of data on MPL premiums from a national perspective". Looking at the data, the PRP notes that in the past two years, the proportions of premiums that increased year-to-year mirrored increases in the 2000s, which is bad news for medical practices.

The author states that the biggest finding for the PRP is that more MPL premiums increased in 2020 than any year since 2005. Between 2018 and 2019, 25.6% of premiums increased, followed by another 31.1% in 2020. This means the past three years saw premium increases and with the disruptions COVID-19 has brought to healthcare, it is likely 2021 will see additional increases.

The PRP looks at two states contiguous to the District, Maryland and Virginia. Premiums in Maryland increased 18.8% between 2019 and 2020, with the largest increase 20%. Virginia "only" saw a 1.3% increase in that time, but their largest noted increase was 26.7%. The author says this shows Virginia had more extremes in increases.

The author concludes the paper by noting that MPL premiums go up and down in cycles. However, 2021 will be informative as to whether rates will increase as they did in the early 2000s, which is considered the last major "hard market".

Sample of Health Equity Legislation MSDC Tracked

Student Access to Treatment Amendment Act (B23-467)

What does it say? The bill allows for the administration of medicinal marijuana in schools as well as allows students to bring sunscreen to schools and apply it without a prescription.

MSDC position: MSDC supports the language permitting sunscreen application in schools

Current status: A win for DC physicians and public health! The legislation passed the Council in February and was signed by the Mayor. Previous temporary and emergency legislation permitted students to use sunscreen at schools this school year already.

Electronic Medical Order for Scope of Treatment Registry Amendment Act (B23-261)

What does it say? The bill requires DC Health to establish an electronic Medical Order for Scope of Treatment registry (eMOST).

MSDC position: MSDC supports this legislation to more easily allow patients to make their treatment orders known.

Current status: A win for the physician community and our patients! The Council passed the bill in December and the Mayor signed it into law on January 16, 2020.

Healthy Beverage Choices Amendment Act (B23-495)

What does it say? The bill would implement a 1.5 cent per ounce tax on the distribution of "sugary" beverages. The money collected from the tax would establish a Healthy People, Healthy Places Open Spaces Grant Program.

MSDC position: MSDC sent a letter to Council Chair Mendelson asking for a hearing to discuss all of the issues around a beverage tax.

Current status: The bill was introduced October 8, 2019 and referred to the Committee on Business and Economic Development and the Committee of the Whole.