Malpractice Insurance - howmanytypesofinsurance

 

Malpractice insurance is a type of professional liability insurance purchased by healthcare professionals. This insurance coverage protects healthcare providers against patients who file suits against them under the complaint that they were harmed by the professional's negligence or intentionally harmful treatment decisions. Malpractice insurance also covers the death of a patient.

KEY TAKEAWAYS

• Malpractice insurance is a type of professional liability insurance intended to cover healthcare professionals.
• Patients can file lawsuits against healthcare professionals seeking damages for medical negligence that resulted in further health problems or death.
• Studies show that medical negligence is the third leading cause of death in the United States, so more likely than not, a healthcare professional will need malpractice insurance.
• Malpractice insurance can be obtained through a private insurer, through an employer, or through organizations, such as medical risk retention groups (RRGs).
• The two basic types of professional liability insurance are claims-made policies or occurrence policies.
• Legal costs, punitive damages, and medical damages are all covered under malpractice insurance.

Understanding Malpractice Insurance

Most medical doctors will need malpractice insurance sometime during their professional career, and for good reason. A study by Johns Hopkins University found medical errors to be the third leading cause of death in the United States, behind heart disease and cancer.

Medical negligence can happen during diagnosis, during treatment, or as part of the advice given for treatment after an illness. Approximately 250,000 deaths in the U.S. arise from medical errors every year.

Some studies show that more than 17,000 malpractice lawsuits are brought to healthcare professionals every year in the United States. An average U.S. doctor can expect to have a malpractice lawsuit brought against them once every seven years. This underlines the importance of having malpractice insurance for a healthcare professional.

States require that medical professionals have current malpractice coverage to work in hospitals and other medical facilities. Medical malpractice insurance premiums are usually based on the physician's specialty and geographic location, not on claims experience. This means that even if a physician has never been sued, they can end up paying extremely high premiums. The premiums can be high because of such factors as the amount of coverage needed, claims severity, claims frequency, location of practice, and laws in the area.

Types of Malpractice Insurance

There are many options for procuring malpractice insurance. In the most basic form, an insurance policy can be purchased for an individual or group by a private insurer. Individual or group policies can also be purchased by a medical risk retention group (RRG). An RRG is a group of medical professionals organized to provide malpractice insurance. Another option for obtaining malpractice insurance is under the coverage plan of an employer, such as a hospital.

Individuals that work as medical professionals under the government do not need to obtain malpractice insurance as the federal government insures against liability claims. Insurance can often also be obtained through state and local agencies if the situation deems it necessary.

The two types of policies that a healthcare professional can purchase are a claims-made policy or an occurrence policy. A claims-made policy only covers claims if the policy was in effect when the treatment occurred and when the lawsuit was made. An occurrence policy covers any claim that was made on a treatment that occurred while the policy was in effect, even if the policy has since expired.

The types of costs covered under a malpractice policy are wide. They include all legal fees, such as lawyer fees, settlement and arbitration costs, medical damages, and punitive damages.

Proving a Malpractice Lawsuit

In a medical malpractice lawsuit, the plaintiff needs to prove a medical professional violated the general standard of care of a patient, as defined by the medical community. In order to be successful in a medical malpractice lawsuit, three things generally need to happen:

1. The plaintiff's attorney must prove there was a breach of medical protocol that resulted in a practitioner choosing a different course of action than a colleague would have taken.
2. The medical professional causes physical or emotional injury.
3. There must be sufficient evidence proving the medical professional caused the damage.

What is Health Insurance? - howmanytypesofinsurance

Health insurance is a type of insurance that covers medical expenses incurred on an illnessor injury. These medical expenses include hospitalisation expenses, medicine cost and doctor/physician fees as well.

Health insurance aims to take care of your expenses in a time of medical crisis. To put it simply, the insured pays regular premiums to the insurance provider, and in return, they offer financial support to them.

Why Do You Need Health Insurance?

Never before has it been so important to take care of your health. The Coronavirus outbreak has made that abundantly clear for all of us. However, even before the global pandemic, there were several threats to our health present in the environment, because of which we need to understand what is health insurance. You might lead a healthy lifestyle, but unfortunately, a medical emergency can occur without warning.

In times of a health crisis, the financial burden can become immensely stressful. With the skyrocketing healthcare costs, it can be challenging to pay for them out of your savings. Therefore, it is essential to plan for medical emergencies.

A health insurance plan protects you from these overwhelming medical expenses. When you understand health insurance meaning and invest in a suitable health insurance plan, it ensures that your family is financially untroubled. Make sure you are aware of various tips to consider before buying health insurance.

Benefits of Health Insurance
There are several benefits to investing in a health insurance plan next to understanding health insurance meaning. Following are the benefits of health insurance plans:

1. Optimum Coverage
2. Cashless Claim Benefit
3. Additional Protection
4. Tax Benefits

Let’s discuss the above health insurance benefits in detail.

1. Optimum Coverage
The principal reason to know what is health insurance and buy it is to create a financial shield for your future. There are several kinds of health insurance plans available to cater to specific requirements. It is crucial to understand your financial needs and choose a suitable policy.

A carefully selected plan will provide optimum coverage, including regular check-up expenses, ambulance expenses, hospitalization charges, alternative treatment, and more. Some policies also offer coverage for treatment at home under medical supervision as a part of domiciliary treatment.

Make sure you understand health insurance meaning in various facets before you choose a plan.

2. Cashless Claim Benefit
To make things easier, most insurance companies offer cashless treatment athospitals. The insurance providers have tie-ups with certain hospitals for such cases. It means that you do not have to pay medical bills directly when you avail of treatment in a network hospital.

The expenses are settled between the hospital and the insurance provider. In the case of an unforeseen medical emergency, cashless treatment can be incredibly helpful.

3. Additional Protection
Most employers provide health insurance for their employees. However, many people find it to be unsuitable to their specific requirements. It may also be affected by a change in employment. A health insurance policy of your choice will put your mind at ease. A plan that is customized to your requirements will offer better security and stability.

Furthermore, several riders can be attached to your existing plan and expand the scope of security. For example, the critical illnesses rider offers protection against life-threatening diseases such as cancer, heart attacks, kidney failure, and more.

4.Tax Benefits
One of the most significant benefits of investing in a health insurance plan is the tax benefits. Many people find it to be a substantial incentive behind opting for health policy. It is so because tax relief is a massive advantage for an individual’s ongoing expenses.

 
Tax Benefits of Health Insurance
If your annual income falls under the taxable category, health insurance can prove beneficial in more than one way. The government allows tax deductions for specific expenses that will help reduce your taxable income. A health insurance plan comes under the list of expenses eligible for tax deductions.

Under Section 80D of the Income Tax Act, you can claim a tax deduction of up to Rs. 25,000 for the self, spouse, or dependent children. If you have a health plan for your parents of less than 60 years of age, an additional deduction of up to Rs. 25,000 is applicable. In case the parents are above the age of 60, the deduction amount can be increased up to Rs. 50,000.

In case both the taxpayer and the parent are above the age of 60, this section allows a maximum deduction up to Rs. 1 Lakh. There are also taxation reliefs for preventive health check-ups between Rs. 5,000 – Rs. 7,000 for the age brackets mentioned earlier.

You can avail of the tax benefits under Section 80D and Section 80C by adding a critical illness rider with a Max Life term plan, thereby serving as a health insurance plan. You can use an online calculator to pay the premium.