HARRISBURG, Pa. -- The state's insurer of last resort, which provides coverage for physicians unable to obtain malpractice liability coverage from commercial carriers, will increase its rates by nearly 50 percent in September.
The Pennsylvania Professional Liability Joint Underwriting Authority currently receives about $6 million in premiums from those who are unable to secure insurance through commercial carriers.
Under a plan approved last week by the state Insurance Department, health care providers will have to pay 38 percent more for coverage through the Joint Underwriting Authority.
Along with other insurance reclassification levels approved by the department, the total increase amounts to 48 percent.
The Joint Underwriting Authority was last granted an increase of 20 percent in January 2001.
"Unfortunately, this continues to demonstrate that we have a crisis in Pennsylvania. It's only going to exacerbate the problem we've seen," said Peter Achor of the Pennsylvania Medical Society.
Seven of the eight physicians at the Center for Women's Health in Middletown, Bucks County, who paid $545,000 for coverage through the authority in May, hope to find new coverage before their policy expires in November.
"They have reached a point where we can no longer keep up with their costs," said Marie Bluebond, the center's administrator.
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