Prior to tort reform Maryland physicians experienced skyrocketing premiums for their medical professional liability insurance. The insurance market was unstable and some carriers withdrew from it altogether. Over the years, beginning in 2005, the malpractice insurance has become stabilized; meaningful tort reform was passed in 2005 acting as the catalyst for stabilizing the medical malpractice insurance market in Maryland. Currently there are a number of admitted and non-admitted stock insurance companies, mutual insurers, and risk retention groups actively writing medical professional liability insurance competing for their piece of the $280,000,000 premium pie. The dominant physician insurer is Medical Mutual of Maryland insuring approximately 44% of the Maryland marketplace. There hasn't been much competition historically save for the last six to seven years when other physician insurers began insuring Maryland physicians.
We're anticipating the addition of 1-2 more insurers within the next 24 months. These market changes should bring the needed downward pressure on physicians' and surgeons' annual premiums for malpractice insurance.
Maryland Tort Reform
In 2004 the Maryland House of Representatives introduced the Maryland Patients' Access to Quality Health Care Act of 2004. It was a struggle to eventually get this bill passed. Maryland experienced a big scare with the threat some large physician and surgical groups leaving their Maryland practices altogether with the struggle peaking when the bill was vetoed by the then Governor of Maryland. Eventually, however, in the first quarter of 2005 HB2 was passed and became law. One of the most important aspects of this bill was the cap it placed on "non-economic" damages. For incidents occurring between January 1, 2005 and December 31, 2008 the non-economic damages were limited to $650,000. Beginning in 2009 this cap automatically increases by $15,000. Currently for 2013 the non-economic damage cap for medical liability suits is $725,000.
In addition to the non-economic damage cap, the following provisions are included in House Bill 2 (Maryland Tort Reform):
- Statute of limitation: (1) Five years from date of incident or (2) three years from the date of discovery
- Letter of Merit required to prove medical malpractice
- Joint and Several Liability
Major Malpractice Insurance Companies
- Medical Mutual Liability Insurance Society of Maryland
- The Doctors Company
- Medical Protective Company
- ProAssurance Company, Inc.
- Applied Medico-Legal Solutions, RRG
Medical Malpractice Insurance Rates By Specialty (Top 15)
Rates depend greatly on specialty. Physicians offering high-risk care, such as surgeons, have higher rates than doctors in lower-risk areas. Prices will vary, though, based on your claim history and location in addition to your specialty. Always talk to an insurance expert to get a more specific quote for your malpractice insurance.
Below are undiscounted state filed rate data averages across all territories for
$1m / $3m limits
* Please note that the above rates are state filed rates. It is not
uncommon for Gallagher Healthcare clients to receive up to 50% or more in discounts
from state filed rates. Please Request a Quote to receive a custom premium indication.
|Specialty||Average Rate||Min Rate||Max Rate||Count
|Internal Medicine No Surgery||$16,134||$8,642||$27,471||3180
|Pediatrics No Surgery||$15,705||$7,227||$31,135||1407
|Family Practice No Surgery||$15,011||$7,227||$24,420||1289
|Obstetrics and Gynecology Major Surgery||$113,746||$76,107||$158,317||826
|Radiology - Diagnostic||$22,130||$9,114||$45,859||707
|Ophthalmology No Surgery||$10,568||$4,400||$15,704||561
|Cardiovascular Disease Minor Surgery||$24,802||$11,941||$42,902||535
|Neurology No Surgery||$21,222||$9,720||$40,488||390
|Orthopedic Surgery No Spine||$51,274||$18,854||$78,912||386
|Gastroenterology No Surgery||$19,106||$9,720||$36,983||363
Rate Range by Specialty
This chart compares the range of possible state filed medical malpractice premium rates by admitted markets and a few Gallagher Select markets broken out by the top 15 specialties in Maryland.
USA Ranking Map
The map below provides a visual display of the nation and compares what a typical primary care physician might pay compared to each individual state and county. This research is based on the average rate for a single specialty, the most common limits in that state, and the mature claims made premium. The darker the blue, the higher the average premium, see how Maryland compares to other states.