HOW DO I KNOW WHEN A SELF INSURED PLAN IS APPROPRIATE FOR MY PRACTICE?
Simply add up the premiums your practice paid to insurance companies for the past 5 years. Subtract what the insurance company paid out in losses for those 5 years. If the insurance company collected more premiums dollars than they paid out, your company is a candidate for becoming self-insured.
Suppose a Neuro-Surgeon paid $650,000.00 in annual premiums and the insurance company paid out $150,000.00 each year in liability claims, inclusive of attorney fees for those past 5 years. With this assumption, the surgeon would have paid 3.25 million in premiums and the insurance company would have paid out $750,000.00 combined in liability claims. This would be a 2.5 million dollar profit for the insurance company in premiums. The analysis is self evident..
When you become self insured, you put that profit in your pocket rather than the insurance company's.
The courts have ruled in some states that as long as a surgeon has the funds on hand or an irrevocable letter of credit to pay liability claims in the amount that the hospital requires, the hospital must allow the surgeon hospital privileges as a self-insured entity. Some surgeons have obtained an irrevocable standby letter of credit or opened a separate bank account to satisfy a hospital's financial requirements.
To find out more about self-Insurance, please call ICC at: 316.683.0170
The self insurance plan is designed for: Orthopaedic Surgeons, Cardiovascular Surgeons, Neurologists, Obstetricians /Gynocologists, Anesthesiologists and General Physicians.
SELF INSURANCE LAWS VARY FROM STATE TO STATE
Arizona Law: Any physician can become self insured in Arizona as long as they can meet the state's requirements for financial responsibility and the hospital's requirements for hospital privileges. For those doctors who want additional information before considering self insurance, see Arizona Healing Arts Board and Arizona State Senate Brief on Malpractice. If you have any questions, please call ICC at (316) 683-0170.
Florida Statues for Medical Malpractice For Doctors &Surgeons; Chapter 627 Section
Kansas Law for Becoming Self Insured K.S.A. 40-3402
Missouri Laws/ Statues Chapter 383-500 : Allows self Insurance at a required minimum of $500,000.00 to become self- insured.
New York No State Requirement to Carry Medical Malpractice insurance
In the state of Ohio: There are no state laws requiring doctors to carry insurance in order to be licensed in the state to practice. Therefore, doctors can become self- insured. The only requirement would be that a doctor meet the hospital's financial requirements in order to grant hospital privileges. If you have questions, please call ICC at: (316) 683-0170.
State of Washington Self Insurance Laws
In the State of Texas: There is no law requiring doctors or surgeons to have malpractice insurance. There is no statute to be found. Also, the Texas Healing Arts Board does not require insurance for doctors to be licensed in the state of Texas. The only requirement would be that a doctor meet the hospital's financial requirements in order to grant hospital privileges. If you have questions, please call ICC at: (316) 683-0170.
Virginia and West Virginia Doctors are Allowed to be Self Insured in the State of Virgina
A West Virginia Supreme Court ruling issued in 2005 upheld a Charleston surgeon's right to provide his own medical malpractice insurance by a 5-0 vote. Hamrick vs. Charleston Area Medical Center. Also, see Virgina Malpractice Code and Cap limits of recovery .
In Essences, your practice can be self- insured in any state such as : Alabama AL Alaska AK Arizona AZ Arkansas AR, California CA, Colorado CO, Connecticut CT, Delaware DE, Florida FL, Georgia GA, Hawaii HI, Idaho ID, Illinois IL, Indiana IN, Iowa IA, Kansas KS, Kentucky KY, Louisiana LA , Maine ME, Maryland MD, Massachusetts MA, Michigan MI, Minnesota MN, Mississippi MS,,Missouri MO, Montana MT, Nebraska NE, Nevada NV, New Hampshire NH, New Jersey NJ, New Mexico NM, New York NY, North Carolina NC, North Dakota ND, Ohio OH, Oklahoma OK, Oregon OR, Pennsylvania PA, Rhode Island RI, South Carolina SC, South Dakota SD, Tennessee TN, Texas TX, Utah UT, Vermont VT, Virginia VA, Washington WA, West Virginia WV, Wisconsin WI, Wyoming WY.
If you have any question about self insurance you can call
our Kansas office 1.316.683.0170