Pennsylvania
Medical Malpractice Insurance For Healthcare Providers

Pennsylvania Medical Malpractice Insurance Market Summary

Through the late 1990s and until recently, medical malpractice insurance premiums in Pennsylvania were rising sharply. However, in the last few years, many malpractice insurance carriers have decreased their rates amid an improving malpractice environment.

The total coverage limits provided to physicians is $500,000 for the primary coverage and $500,000 for the MCARE coverage, totaling $1 million limit per claim.

The MCARE Fund insures doctors and hospitals for so-called “excess” claims, which means claims where there is provable medical or hospital negligence, and a relationship between the negligence and harm where the damages exceed $500,000. The Fund is an arm of the Pennsylvania Insurance Department and was created by Act 13 of 2002 signed into law March 20, 2002, although it is a successor to the Medical Professional Liability Catastrophe Loss Fund, known by the acronym CAT Fund.

Each health care provider in Pennsylvania which provides 50% or more of professional health care business or practice within Pennsylvania must obtain primary coverage in the amount of $500,000 or an approved self-insurance plan. Participation in MCARE is mandatory for physicians, hospitals, nursing homes, birth centers, and a variety of other health care providers.

Pennsylvania Medical Malpractice Insurance Carriers

Medical malpractice insurance in Pennsylvania is available from admitted insurers, surplus lines insurers, risk retention groups, and the Pennsylvania Professional Liability Joint Underwriting Association (JUA). Since April of 2002, the Pennsylvania Department of Insurance has licensed or approved 57 new entities to offer medical malpractice insurance coverage to hospitals and physicians. Some companies have voluntarily ceased writing medical malpractice insurance in Pennsylvania, such as Princeton Insurance Company and First Professionals Insurance Company.

Statute of Limitations

Medical malpractice actions for injury or wrongful death must be brought within two years. 42 Pa. Cons. Stat. § 5524(2) (2007). The statute does not begin to run until the injured party discovers or reasonably should have discovered that he has been injured. This discovery rule does not apply to death cases, however.

Comparative Negligence

Pennsylvania has adopted a modified rule of comparative negligence. A plaintiff’s recovery is barred only if his contributory negligence is greater than the causal negligence of the defendants against whom recovery is sought. Otherwise, the plaintiff’s damages are diminished in proportion to the amount of negligence attributable to him. 42 Pa. Cons. Stat. § 7102(a) (2007).