For medical providers and practice administrators, Florida medical malpractice insurance rules can appear complex. But, given the unique regulatory environment in the state, it's critical they fully understand them to avoid unnecessary financial risk.

Florida's Comprehensive Medical Malpractice Reform Act, passed in 2023, represents efforts to reduce frivolous claims, promote settlements, and reduce the high cost of medical malpractice insurance in the state. These changes represent a significant effort to improve conditions for practitioners and their patients. However, the results of tort reform continue to unfold.

This article will guide you through the intricacies and critical factors shaping the current Florida medical malpractice insurance environment. We'll cover the reasons for Florida's comparatively high malpractice insurance costs, insurance and self-insurance options for practitioners, and the impact of the state's recent tort reform measures and what they mean to your practice.

Malpractice Insurance Costs in Florida

Florida medical malpractice insurance is much higher on average than elsewhere in the United States. Additionally, rates can vary significantly based on:

• Medical Specialty
• Geographic Location
• Claims History

There are several reasons why Florida medical malpractice insurance rates are significantly higher than the national average:

• Litigious Climate: Florida's relatively favorable conditions for plaintiffs increase the risks for insurers.
• Population Density and Demographics: Urban areas like Miami have a higher density and diverse demographic footprint, contributing to a broader range of services provided and, hence, a higher risk of claims.
• Medical Specialty: Some specialties incur exceedingly higher premiums. Obstetricians and neurosurgeons in Miami pay the highest rates in the United States due to the high risk associated with their services.

Rate Examples for Physicians

• General Practitioners: General Practitioners based in Miami should expect to pay 20% - 50% higher malpractice premiums than their counterparts in more rural areas of Florida.
• High-Risk Specialties: Miami specialists in higher-risk specialties experience premiums far higher than those in other large cities, given the risks of litigation in their local area.

Top Malpractice Insurance Carriers in Florida

• ALTOR National Liability Insurance
• Applied Medico-Legal Solutions Risk Retention Group, Inc.
• CM&F Group
• Doctors Professional Liability Risk Retention Group, Inc.
• Medical Protective Company
• Medical Protective Company
• National Fire & Marine Insurance Company
• ProAssurance Indemnity Company, Inc.
• ProAssurance Specialty Insurance Company

Impact of Tort Reform

Despite the recent enactment of the 2023 Florida Comprehensive Medical Malpractice Reform Act, which shortened the statute of limitations for filing medical malpractice claims to two years, it has yet to encourage lower premiums. Despite its aim at reducing the frequency and severity of malpractice claims, the costs of existing ongoing litigation and continued massive payouts have kept malpractice rates high.

Yet, some experts believe the 2023 tort reforms will eventually lead to long-term benefits. With the potential for decreases in frivolous lawsuits and faster resolution of claims, the reforms will ultimately reduce risk and the cost of premiums for Florida physicians.

Insurance Requirements and Alternatives

Unlike many other states, Florida physicians are not legally required to carry medical malpractice insurance. Yet, hospitals and healthcare facilities may still require doctors to maintain certain malpractice liability limits to gain admitting privileges or to perform contract work.

• Self-Insured: Physicians forgoing medical malpractice insurance must adhere to stringent procedures for self-insuring. Stipulations include posting a public notice and demonstrating financial responsibility through an escrow account, letter of credit, bond, or trust to cover potential liabilities and malpractice claims.
• Pre-paid Defense Plans: Although not insurance, some physicians opt for pre-paid defense plans that offer legal representation and that cover the costs involved with defending against a malpractice suit.
• Risk Assessment and Management Programs: Physicians can reduce the likelihood of malpractice claims through comprehensive risk management programs. These programs emphasize continuous training, close monitoring of clinical guidelines, and patient communication strategies. They are not, however, insurance products.

Patient Compensation Plans

It's important to note that Florida does not offer a patient compensation fund. Unlike other states, such as Pennsylvania and Wisconsin, these accounts are partly funded by malpractice premiums paid by physicians, effectively reducing their risk of a lawsuit. Their absence adds to the risk of malpractice suits for physicians in Florida since recovering damages due to medical malpractice falls entirely on physicians.

Despite the lack of a legal requirement to carry Florida medical malpractice insurance, providers who decide to go without exposing themselves to significant financial risks. A far more prudent approach is to work with a qualified medical malpractice insurance broker to determine the most appropriate level of coverage best suited for their practice specialty and geographic location.

Regulatory Environment and Tort Reform

Florida's 2023 tort reform reduced the statute of limitations on filing medical malpractice insurance to two years. This period begins at the time of injury or when the injury should have been discovered. There is also a four-year statute of repose with a seven-year cap for claims involving fraud or intentional misrepresentation.

One of the few exceptions to the two-year limitation for claims is cases involving a minor under eight years old, under which a claim can be filed until the child's 8th birthday.

Comparatively speaking, other states have equally shorter time limitations on claims but with significant variations.

• California has a two-year statute of limitations but extends the period to three years if the plain till doesn't immediately discover the injury.
• New York state doesn't have any statute of repose. This undefined period implies that plaintiffs can file claims many years after receiving treatment, creating long-term risk for practitioners.

Physicians should carefully consider the costs of not carrying Florida medical malpractice insurance. Although the potential for savings on premiums might sound initially attractive, the long-term exposure to risk and the out-of-pocket expenses of defending against claims are significant.

Claim Data

The National Practitioner Databank (NPDB) is a repository of medical malpractice claim information for healthcare providers in the United States. Following is a summary of data where we can observe the number of malpractice payments, adverse actions, and other disciplinary actions taken against healthcare professionals.

Year	Payment Count	Total Payments	Average Payment	Max Payment	Over 500K Count	Over 1M Count	Over 5M Count
1995	887	$200,218,150	$225,725	$7,750,000	77	14	2
1996	1122	$243,298,350	$216,843	$1,950,000	92	11	0
1997	1145	$230,026,250	$200,896	$2,650,000	87	7	0
1998	1093	$231,179,600	$211,509	$10,500,000	74	12	2
1999	1096	$249,221,400	$227,392	$3,650,000	104	6	0
2000	1284	$321,050,800	$250,040	$5,250,000	136	18	1
2001	1367	$333,171,150	$243,724	$6,950,000	132	22	1
2002	1351	$323,954,350	$239,789	$2,950,000	139	21	0
2003	1449	$454,829,900	$313,892	$6,950,000	188	31	10
2004	1306	$332,981,750	$254,963	$27,500,000	122	12	2
2005	1257	$288,850,000	$229,793	$3,250,000	105	15	0
2006	1004	$234,276,050	$233,343	$2,450,000	97	15	0
2007	971	$264,606,150	$272,509	$10,500,000	88	25	1
2008	1067	$288,521,200	$270,404	$14,500,000	97	21	2
2009	1000	$226,244,350	$226,244	$4,450,000	61	12	0
2010	913	$246,581,500	$270,078	$12,500,000	71	17	2
2011	835	$202,345,550	$242,330	$10,500,000	49	9	2
2012	789	$192,244,050	$243,655	$5,450,000	57	14	1
2013	838	$181,684,450	$216,807	$2,950,000	49	9	0
2014	880	$217,281,350	$246,911	$4,950,000	77	13	0
2015	927	$241,193,100	$260,187	$12,500,000	79	15	2
2016	856	$202,301,800	$236,334	$4,950,000	71	14	0
2017	1023	$245,868,050	$240,340	$3,050,000	93	16	0
2018	1118	$326,869,500	$292,370	$8,950,000	122	22	2
2019	1042	$332,669,550	$319,261	$9,450,000	123	28	4
2020	913	$308,617,900	$338,026	$27,500,000	112	18	3
2021	878	$257,617,350	$293,414	$4,950,000	103	13	0
2022	1126	$375,556,950	$333,532	$11,500,000	148	23	5
2023	1111	$386,601,550	$347,976	$12,500,000	182	18	3

 

Over the years, Florida's medical malpractice payments have fluctuated, reflecting shifts in severity and litigation trends. Total payments have generally risen, peaking at $454.8 million in 2003, while average payments per case have shown varying trends. Some individual cases have resulted in substantial payouts, with the highest reaching $27.5 million in 2004. Additionally, the frequency of large payments exceeding thresholds like $500,000, $1 million, and $5 million has changed over time, indicating changes in the severity or complexity of malpractice claims.

Recent years have seen an increase in both average payments and the number of high-value payments, possibly influenced by rising healthcare costs or evolving litigation patterns. This data provides valuable insights into the dynamics of medical malpractice in Florida, highlighting trends and potential areas for further investigation, particularly regarding the impact of legislative reforms on malpractice claims.

Navigating the Complexities

Florida medical professionals should work with an experienced broker when shopping for medical malpractice insurance. Skilled brokers do more than compare and provide quotes. They can tap into their network of insurers and use their expertise to find the most suitable coverage at the best price.

Given the many complexities of Florida medical malpractice insurance, determining the correct coverage at the best premiums is far more complicated than shopping for other types of insurance. A seasoned broker understands the intricacies of the medical malpractice insurance sector and the unique factors particular to each medical professional and their specialty. They will consider your individual circumstances, including your practice location, specialty, and claims history when determining potential coverage and premiums.

The Physician's Guide to Florida Medical Malpractice Insurance

As we've explored in this article, Florida medical malpractice insurance is extremely complicated. Despite the lack of a legal requirement to carry medical malpractice insurance, physicians will find self-insured options presenting significant complexity and outsized risks. Additionally, most hospitals and healthcare facilities impose widely varying insurance requirements upon doctors practicing there.

Despite recent tort reform and the change it hopes to usher in, medical professionals should be proactive in understanding how this new legislation impacts their practice and livelihoods. Physicians should confirm that they have the appropriate coverage for their location and specialty by working with an experienced Florida medical malpractice insurance broker. Seasoned brokers can draw from their extensive network of insurers to offer physicians the most appropriate coverage they need and for the most cost-effective premiums available.

Sources

1. Florida's statute of limitations for medical malpractice claims is two years from the time of injury or discovery, with exceptions for fraud cases. Source
2. Pennsylvania's Patient Compensation Fund (MCARE) covers medical professional liability claims. Source
3. Wisconsin's Injured Patients and Families Compensation Fund (IPFCF) provides coverage for medical malpractice claims. Source
4. Florida's comprehensive tort legislation aims to reduce the frequency and severity of medical malpractice claims. Source
5. The Florida Bar News highlights the comprehensive tort legislation passed by the Florida Legislature, including provisions on medical malpractice. Source