'Skyrocketing' medical liability premiums create 'tough choices' for physicians

For the fourth year in a row, medical liability premiums have increased — to the point where physicians are having difficulty finding affordable insurance, the American Medical Association said April 19. 

"The prevalence of year-to-year increases in medical liability premiums between 2019 and 2022 has not been observed in two decades," the AMA news release said, noting the upward pricing trend is being seen throughout the United States.

At 63.6 percent in 2022, Illinois topped the list of 15 states with the largest proportion of premiums that increased 10 percent or more. Illinois led the list in 2021 as well.

"For physicians who can still obtain coverage in a hard market, the skyrocketing costs may force physicians to relocate away from certain high-cost states or drop certain critical services that raise their liability risk," AMA President Jack Resneck Jr., MD, said. "These tough choices can lead to reduced access to care for patients."

Medical liability insurance costs stabilized between 2013 and 2018. In 2019, about 27 percent of  premiums increased — almost twice the rate of increase from 2018.

The premium spikes rose further between 2020 and 2022, with approximately 30 percent of premiums increasing year to year. In 2022, the proportion of premiums with increases reached 36.2 percent — more than any year since 2005.

 

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