Border States = New Business?

Dr. Jensen clarifies nuances of moratorium

ISMIE Mutual's physician Board of Directors imposed a moratorium on new business in Illinois as of January 1, 2003. Now, it's been reported in some industry-related publications, ISMIE is on an expansion kick, oozing over adjacent-state borders to absorb new business. What's going on? Is ISMIE in an acquisition mode? What's the status of the moratorium? Is expansion in the best interest of our policyholders?

We asked ISMIE Chairman Harold L. Jensen, M.D., to clarify what's going on.

"The moratorium, as originally defined, still stands," Dr. Jensen stated. "We have, however, taken some carefully thought out steps to assure that we're best serving all of our current policyholders, some of which have practice affiliations in our bordering states. Toward that end, we've acquired new licenses in Missouri and Wisconsin, and we've applied for licensure in Indiana."

Business as Usual

Jensen went on to explain that we've always served Illinois practices that have satellite offices or affiliates in adjacent states. In those instances, coverage had been provided for ISMIE policyholders through external insurance entities. In recent years, he noted, many health care groups have grown through consolidation, giving them a presence beyond the Illinois borders. "Servicing our existing policyholders directly, in spite of crossing the state line, is simply more efficient for all concerned," said Dr. Jensen.

Eligibility exceptions have been in place since the moratorium's inception. Physicians who join an ISMIE-insured physician's practice or an ISMIE-insured economically integrated group have always been able to apply for coverage, as have newly practicing physicians. These exceptions apply to all states in which ISMIE writes business.

ISMIE continues to be highly respected in the market for the careful management of its financial reserves, prudent underwriting and for aggressive defense of every case without merit. As far as providing service to current Illinois policyholders with across-the-border affiliations, it's another way that ISMIE continues to be the physician-first service insurer.