Demystifying Pricing

At MedPro, we understand you want a "great deal" when purchasing your healthcare malpractice insurance. But, if you're involved in a claim, not only are your career and reputation at stake, but your personal assets are, as well.

When considering healthcare malpractice coverage, we encourage you to review price in the context of value. Your selection of company and coverage will have a big impact on whether you're getting the best coverage for your money.

Why the Lowest Priced Coverage May Not Be the Best Value

1. The Low Price May Not Account for Unexpected Claims.

   In 2012, the average dental malpractice claim payment made nationwide was about $68,000, an amount that most dentists and oral surgeons would find it difficult, if not impossible, to pay on their own As a result, your malpractice insurance company's financial strength is vitally important. The strength of any insurer is dependent upon that insurer charging the right price for its product. Clearly, if an insurance company underprices its coverage, that company could end up with insufficient resources to pay claims.

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   Underpricing leaves a company with little to no room financially when more claims are filed than the insurer anticipated, or when payouts are higher than predicted. Thus, low premiums do not always accurately reflect the potential insurance risk. As such, when a malpractice insurance company underprices coverage, they put themselves, and you, in financial danger.

   Every year, MedPro handles more than 800 dental malpractice claims. With billions in assets, MedPro has the highest financial ratings in the healthcare malpractice insurance industry (A++ with A.M. Best), and the ability to pay claims now and well into the future.

   Bottom Line: MedPro's accurate prices and financial strength ensure you never have to worry about our ability pay claims.

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2. The Low Price May Indicate You Don't Have Pure Consent Authority When Resolving Claims.

   MedPro believes you should decide whether to settle your healthcare malpractice claim. That's why our policy gives you that right — no exceptions. Other companies' policies appear to provide the same protection; however, when you read the entire consent provision you might find exceptions which actually give consent authority back to the insurance company.

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   For example, some competitors' policies remove your consent authority if they deem you "unreasonable" in withholding consent. Others include a "hammer clause" provision in their policies, which typically penalizes insureds who refuse to settle a claim. If a verdict is returned for more than the possible settlement, the insured must pay all amounts incurred above the rejected settlement amount.

   MedPro has one simple philosophy: we will not settle a claim without the policyholder's consent. Period. You are in control of your reputation. No hidden clauses. Our only interest is your best interest.

   Bottom Line: MedPro's focus is defending your reputation and career.

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3. The Low Price Does Not Support Industry-Leading Claims Defense.

   Good legal protection is expensive. MedPro utilizes the nation's best healthcare malpractice defense attorneys, and hiring those attorneys—along with the nation's best expert witnesses—is expensive. But we believe you deserve the best defense available. MedPro has never and will never compromise defense quality to save a few dollars, and our track record indicates that approach is in your best interest.

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   • Over the past ten years, 80% of MedPro's dental claims were resolved without payment.
   • MedPro won 95% of dental claims that were taken to trial.
   • MedPro leverages the knowledge of its Dental Specialty Advisory Board – comprised of leading dentists and oral surgeons from across the country – which provides resources for hard-hitting defense strategies.
   • MedPro has access to thousands of dental and oral surgery expert witnesses nationwide.
   • MedPro's claims and risk managers average 25 years of experience.
   • MedPro doesn't give up when the claim gets difficult. In fact, we recently won a case after 20 years and seven different trials, including two trips to the state's supreme court.
   • MedPro's locally retained defense attorneys know your local judges and legal environment to assure you get the most solid and aggressive defense possible.

   Bottom Line: MedPro decided over a century ago not to save pennies at the expense of providing the best defense to our insureds. MedPro offers a reasonable price, so we never have to compromise impeccable claims service.

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4. The Price is Low Because Coverage is Limited.

   Dentists and oral surgeons should have access to the industry's most comprehensive coverage options. Make sure your company offers:

   • Three coverage types: occurrence, claims-made and convertible claims-made.
   • A pure consent to settle provision.
   • A free extended reporting period ("tail") at retirement after just one year of coverage and a mature retroactive date.
   • A free tail for death and disability.
   • Additional coverages, including: cyber liability, board and externship coverage and defense during administrative hearings or state licensing board actions.

   Bottom Line: No other company beats MedPro's comprehensive coverage options.

5. The Low Price Reflects Only Current Market Conditions—Not a Long-Term Commitment.

   The healthcare malpractice insurance market is cyclical, and the past few years have given rise to fewer claims than in decades past. This insurer-friendly environment makes the market attractive for start-up companies.

   But, it's difficult to establish a price that combines strong defense and affordability. When conditions are less favorable for making money, many of those same startup companies might leave the healthcare malpractice insurance market as quickly as they arrived, thus abandoning you and forcing you to shop for a new insurer.

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   And, if you purchased claims-made coverage, their departure may also force you to shop for costly "tail" coverage to protect you from the time you were with the now departed insurer. (See the Occurrence module for more information).

   Over the years, MedPro has managed more than 400,000 claims, giving us a wide historical breadth of claims management expertise. That data, combined with a rigorous actuarial process, is continuously analyzed – which assures MedPro will be around for another century, providing the best defense and broadest coverage to dentists and oral surgeons like you. You don't have to wonder whether MedPro will be there at the end of your career to cover claims that may be occurring today.

   Bottom Line: For over 110 years, our focus has been protecting and defending the healthcare community. Our long history has taught us what works and what doesn't, and we leverage that knowledge for your benefit, even when that means our price is occasionally a little higher.

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