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New Jersey Medical Malpractice Insurance

Free Quotes on Med Mal Insurance for New Jersey doctors New Jersey medical malpractice insurance rates remained stable in recent years. In fact, a new A-rated carrier entered the NJ market with competitive rates.

With 12 different malpractice insurance companies currently writing in the Garden State it's important to ensure you have the best coverage at the most affordable price.

New Jersey Doctors – Get a Better Rate Today.

Get personal service and top-rated advice from licensed medical liability consultants who specialize in New Jersey med mal insurance. These experienced professionals work for you to get the most affordable rates on quality malpractice coverage. There's no need to wait until your renewal date - switch anytime!

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Medical Malpractice Insurance Rates in New Jersey

As a doctor practicing in New Jersey there are a number of different important factors that go into determining your medical malpractice insurance rate (e.g. New to practice, Full-time vs. Part-time, Occurrence or Claims Made). In order to ensure that you have the proper coverage at the most affordable price simply submit your free quote request today.

A friendly liability consultant who specializes in helping New Jersey doctors will be glad to review all your options with you. Eliminate all the stress and headaches from finding the best coverage for your practice needs!

New Jersey’s Medical Liability Climate

Entering the year 2003, New Jersey doctors felt overwhelmed by huge increases in medical liability insurance premiums. Many were relocating to other states, no longer practicing high-risk procedures or retiring early. New Jersey obstetricians’ premiums had increased by 67 percent over the previous year, and many were paying in excess of $100,000 a year for coverage. Other high-risk specialties, like neurosurgeons, had been equally hard hit. The year prior, there were 85 practicing neurosurgeons in New Jersey; by 2003, the number shrank to 65.

And the liability problems were not confined to the traditional high-risk specialists. Primary care practitioners were feeling pressure as they were often dragged into lawsuits when they refer a patient who encountered a bad outcome. Primary care doctors in the Garden State also weathered a 75-percent increase in their premiums over the previous two years.

In response, the Medical Society of New Jersey organized a weeklong walkout in February of ’03 to illustrate the imminent effect skyrocketing premiums would have on access to care (an estimated 70 percent of the state’s 22,000 physicians took part in the walkout).

During the first week February 2003, physicians closed their offices and refused to see patients except for emergencies. The striking doctors handed out leaflets to patients that explained the situation, distributed form letters to send their legislators and circulated petitions. By May, New Jersey legislators would receive 35,000 letters and more than 15,000 phone calls in support of their doctors’ situation.

Following the walkout, a bipartisan committee in the state Senate met to craft a tort reform bill. A compromise was struck that created a cap on noneconomic damages of $300,000 for physicians, but established a catastrophic fund for additional damages.

Unfortunately, the bill languished and died in the face of a statewide budget crisis.

Shortly thereafter, New Jersey’s largest malpractice carrier, Princeton Insurance, which insured more than half of the state’s physicians, had it’s insurance rating downgraded, was forced to increase premiums to ensure an adequate surplus and then, finally, announced that it would temporarily suspend writing new policies.

With the writing on the wall, the state legislature revisited the issue in 2004, and on June 4, then Governor James McGreevey signed into law the “New Jersey Medical Care Access and Responsibility and Patients First Act,” enacting specific medical malpractice reforms designed to curb skyrocketing malpractice insurance premiums and ensure citizens’ access to healthcare.

The New Jersey Medical Care Access and Responsibility and Patients First Act reformed the state’s healthcare liability climate by:

  • allowing physicians to form medical malpractice liability insurance purchasing alliances in order to negotiate a reduced premium
  • requiring insurers to provide a reduced premium for policies that do not include a “consent to settle” provision
  • requiring insurers to offer policies with deductibles of at least $5,000 per claim and up to $1 million per claim
  • prohibiting a carrier from increasing the premium of an insured if the insured is dismissed from an action alleging medical malpractice within 180 days of the filing of the action
  • requiring all medical malpractice insurers to certify to the Department of Banking & Insurance as to adequacy of their financial reserves as a way to ensure the safety and soundness of insurers
  • allowing the New Jersey insurance commissioner to order a rate roll back if it is determined that a carrier’s medical liability rates are not in compliance with the law.

New Jersey Medical Malpractice Insurance
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The Act further created a 17-member task force to review issues related to the medical malpractice affordability crisis and required them to issue a report 24 months after the effective date of the bill; as well as created a three-year, $78 million fund to provide direct premium relief to doctors and self-insured hospitals.

No, the New Jersey Medical Care Access and Responsibility and Patients First Act did not have an immediately positive effect on the state’s insurance rates. Princeton Insurance increased its premiums by 9 to 14 percent in 2005; one other insurer raised its general surgery rates by 61 percent that same year.

In the years since 2005, New Jersey physicians have experienced some rate relief, if you consider no rate increase a relief. The state is still an expensive place to practice medicine, with most New Jersey OB/Gyns paying in excess of $100,000 in medical liability premiums.

The Medical Society of New Jersey has gone on the record as recently as 2008 to state that it “strongly believes that the current medical liability tort and insurance systems are broken and in need of significant reform. These costs are unsustainable, especially for high risk specialties such as OB and other surgical specialties. Even for primary care, the ratio of cost to income is unacceptable.”

The Medical Society continues to advocate for a host of reforms, including caps on non-economic damages.


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