|
|
 |
 |
 |
|
|
|||
|
||||
|
||||
Doctor insurer hit for premium, pay hikesFrom: rmodugno@aol.comFri Mar 26 14:17:16 2004
This story was sent to you by: Robert Modugno -------------------- Doctor insurer hit for premium, pay hikes -------------------- -------------------- -------------------- By Bruce Japsen Tribune staff reporter March 26, 2004 The state's largest medical malpractice insurer is under fire for hiking premiums the same year it booked substantial profit and some senior executives received double-digit pay increases. Chicago-based ISMIE Mutual Insurance Co., which insures 14,000 physicians in Illinois, turned in a $19.8 million profit in 2003 while its surplus--a key indicator of an insurer's health--increased by $31 million to more than $201 million, according to records filed with the Illinois Department of Insurance. In 2002, ISMIE lost nearly $62 million while its surplus dropped $71 million to $170 million. Because the company is a mutual, and therefore owned by policyholders, critics say profits should have been used to alleviate soaring malpractice premiums. ISMIE in 2003 raised premiums an average of 35 percent for doctors. Some physicians saw rates jump 100 percent for high-risk specialties such as neurosurgery and obstetrics. In July ISMIE's rates are expected to rise another 7 percent on average when the new premium year begins. Meanwhile, two senior executives, who already make more than $500,000, received raises of 12 to 18 percent to put their salaries above $600,000 last year, ISMIE records show. The criticism levied against ISMIE by trial lawyers and some policyholder physicians bolsters arguments for insurance reform, the insurer's critics say. Supporters of insurance reform argue that rising malpractice rates are cyclical and affected more by investments in the stock market than jury verdicts won by patients and their attorneys. ISMIE and its affiliate, the Illinois State Medical Society, have been battling with trial lawyers in Springfield about ways to resolve the malpractice crisis that has forced some doctors to leave the state. ISMIE and the medical society want tort reform. "How can ISMIE hand out pay raises and make a huge profit and at the same time raise premiums on doctors and force them to leave the state?" said Doug Wojcieszak, spokesman for Victims and Families United, a Madison County-based group he said is funded largely by trial lawyers. But ISMIE said the criticism is unfair and without merit, saying it used increases in premiums to stabilize its surplus and stay in business during a period when many other companies left Illinois. Therefore, ISMIE executives were "rewarded" for guiding the company through a difficult period, the insurer said. Though some senior executives were granted high raises, management on average earned pay increases of 2.3 percent, ISMIE said. Physician board members, on average, were paid increases of 5.1 percent, ISMIE said. "In a really terrible environment that we have had for the last three to four years, the company has survived," said Dr. Harold Jensen, ISMIE board chairman. "It is financially sound and it took in 2,800 stranded physicians that were left high and dry by failing and fleeing companies." Only five malpractice carriers are currently writing policies for doctors in Illinois and three of them are highly restrictive, ISMIE said. Just three years ago, there were nearly 20 companies writing policies for physicians in the state. ISMIE's investment gains more than doubled last year to $71.8 million from $35.2 million a year earlier. But ISMIE said such gains were needed to offset an underwriting loss of more than $50 million and increase its surplus. "In 2002, we had a $115 million underwriting loss over and above what the actuaries had predicted, so the purpose of the surplus is to pick that stuff up," Jensen said, referring to an extraordinary number and size of claims paid that year. Still, Jensen and six other incumbent ISMIE board members face a rare slate of opposition in an election for seven open seats on the insurer's 21-member board. Winners of an April 21 election will each serve three-year terms. Opponents say ISMIE has not been transparent in operating the company, especially when it comes to methodology in calculating premiums and in paying salaries of executives, who some doctors say also draw salaries from the affiliated Illinois State Medical Society. "I would like to see an ISMIE that is more transparent," said Dr. Muhammad Riaz, a cardiologist from Elgin, who is running for a seat on the insurer's board. "I would also like to see how the expenses are managed." Dr. Arvind Goyal, a Rolling Meadows family physician and chairman of Chicago Metropolitan Physicians Network, is pushing for the slate of challengers. "Doctors are very concerned with not only the lack of legislative activity but that the insurance company that is supposed to represent them has not lived up to its promise," Goyal said. Copyright (c) 2004, Chicago Tribune -------------------- Improved archives! -------------------- -------------------- Searching Chicagotribune.com archives back to 1985 is cheaper and easier than ever. New prices for multiple articles can bring your cost down to as low as 30 cents an article: http://www.chicagotribune.com/archives
|
|
Return to
|
Mail a New Message to the Forum: ob-gyn-l@obgyn.net Forum Administrator: geffrey.klein@obgyn.net Report Technical Problems: webmaster@obgyn.net Last Updated: Fri May 2 04:38:08 2008 |
The American Medical Association is no longer designating CME hours for AMA Category II CME credit. However, physicians themselves may self designate learning activities as Category II CME credit hours if they feel it is of sufficient educational merit and meets the formal definitions of continuing medical education. OBGYN.net believes these interaction in this forum meets these criteria. For further information see the AMA web site.