Michigan medical malpractice insurance is uniquely defined by abundant competition among insurance carriers. Six different insurance carriers insure 75% of providers throughout the state, with no single carrier dominating market share. Through the utilization of a broker, providers in the state will benefit by evaluating the market each year and taking advantage of the competitive landscape to leverage the most competitive premium value possible. Competition wasnâ€™t always as prominent in the state, however, as Michigan, like many other states in the country, faced rapidly rising claim frequency and litigation in the early 1980â€™s. From the late 1970â€™s up to 1985, claim rates rose an astronomical 150%. Higher-risk surgical specialties, as well as obstetrics, experienced rapidly decreasing numbers of practitioners as providers hoped to avoid malpractice claims. The need for stabilization of both rising malpractice claims, as well as premium rates, resulted in urgent legislative action.
Michigan Tort Reform
First tort reform measures took place in 1986 and addressed the following:
- Venue Reform â€“ all claims had to be filed in the county of where the alleged incident occurred. Previously, plaintiffs would â€œshopâ€ for the most jury-friendly county to file their claim in.
- Joint â€“ and- Several Liability â€“ payouts by defendants were limited to only the proportionate amount of fault they held in a claim
- Non-economic damages were capped at $225,000 (there were a variety of exceptions to this)
Follow up tort reform in 1993 built on this precedent by enforcing more stringent medical record/file sharing cooperation among lawsuit parties as well as widening the scope of the non-economic damage cap to all malpractice cases (although the cap was actually raised to $280,000).
Most recently, in 2013, legislation has been passed referred to as â€œPatientâ€™s First Reform Package,â€ which was aimed at restoring and enhancing the 1986 and 1993 tort reform. Namely, itâ€™s aimed at reducing the time period for suing on behalf of a deceased person and banning prejudgment interest on costs and attorney fees incurred during the time before a judgment is issued.
Major Medical Malpractice Insurance Carriers
- The Doctors Company
- Medical Protective Company
- Berkshire Hathaway
- CNA Insurance Group
- Michigan Professional Insurance Exchange
- Coverys Group
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||$22,350||$8,544||$42,852||5656
|Family Practice No Surgery||$19,402||$7,145||$42,852||5038
|Pediatrics No Surgery||$18,042||$7,145||$42,852||1995
|Obstetrics and Gynecology Major Surgery||$87,790||$44,026||$214,258||1781
|Radiology - Diagnostic||$26,423||$9,010||$53,564||1614
|Orthopedic Surgery No Spine||$50,725||$18,640||$107,129||977
|Cardiovascular Disease Minor Surgery||$32,401||$11,805||$59,992||764
|Ophthalmology No Surgery||$12,501||$4,350||$34,281||758
|Neurology No Surgery||$28,812||$10,563||$53,564||603
|Pathology No Surgery||$13,619||$6,213||$34,281||532
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 Michigan.
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 Michigan compares to other states.