Las Vegas doctors could face higher malpractice premiums

Wednesday, Jan. 3, 2001 | 11 a.m.

CARSON CITY -- Medical malpractice rates for doctors in Clark County who are covered by The Doctors Co. may go up an average of 12.2 percent, while premiums for the doctors in Northern Nevada may drop an average 2 percent.

The state Insurance Division says The Doctors Co. submitted those proposed rate changes, to be effective in March for new polices and in May for renewal policies. The Doctors Co. is the second largest medical malpractice insurer in Nevada.

Some doctors in Southern Nevada could be facing increases as high as 20 percent for coverage of up to $1 million per incident and a maximum of $3 million for the policy year.

A division spokeswoman said the rating manual for The Doctors Co. puts the annual premium for a specialist in obstetrics and gynecology at $93,857, which would rise 20 percent to $112,628 if the increase is approved. The rates, however, vary based on experience and if a doctor is free of any malpractice claims.

The rate for a general surgeon, according to the manual, is now $58,714, and that would rise to $70,457.

The rate change request also would raise the discount for physicians who are claims-free to 15 percent, up from 10 percent.

Last February the company lowered rates statewide by 2.4 percent. The company, according to its application, is collecting an average $19,733 per policy holder in Clark County but needs $30,319 to make a reasonable profit. Janice Moskowitz of the insurance division said that even approval of the increase would not cover the amount the company needs.

"The would still be losing money in Clark County with the rate increase," said Moskowitz, who is handling the rate application.

The company lists its return on equity at 4.5 percent. In 1999 the company collected $6.9 million in premiums in Nevada. If this rate increase is granted, that would rise by $264,000, an insurance spokeswoman said.

The insurance division will study the application and may hold a public hearing on the proposed rate changes

Moskowitz said she has several questions of the company. The division must make a decision within 60 days from the time the application was filed Dec. 18.