Rep. Oelslager (R-Canton) has asked the Commission on Medical Malpractice to review possible legislation that would require every malpractice insurance policy be issued for at least five years, and would prohibit insurers from increasing premiums by more than 5% over the prior year. Under the amendment, insurers could raise premiums in excess of 5% if they could demonstrate to the department with actuarial information that the boost was justified. Rep. Oelslager also asked the commission to:
Ms. Womer-Benjamin, the Director of the Ohio Department of Insurance has rejected as "problematic" and "extreme" the recommendation to require medical malpractice insurance companies to offer five-year policies with guaranteed renewals and a 5% cap on annual premium increases. The director said existing state law requires that all rates be actuarially justified before the department may accept them. She said the medical malpractice market, volatile under normal circumstances, was more uncertain than ever. However, she saw positive signs emerging that include the entry of a new company into the market, and two consecutive years in which premiums have increased at the same level.
"Were Ohio to take extreme action as you suggest, companies would leave the Ohio market entirely or their financial situation would plummet, an area the department also oversees and regulates as part of its consumer protection mission," Ms. Womer-Benjamin said. "Forcing medical malpractice companies into insolvency is not in the best interests of Ohio consumers."