ISMIE Mutual Insurance Company 2006-2007 Premium Rates
An Overview
ISMIE announces a 5.2 percent average premium reduction for the 2006-2007 policy year:
- ISMIE will collect 5.2 percent less in total premium dollars from policyholders than it did last year.
- Want to pay even less in premiums? ISMIE will make additional monies available for policyholders to earn discounts in its Managing Risk program. ISMIE’s loss-free discounts continue, which range from 3 percent to 19.5 percent for policyholders, based on the number of years without a paid loss.
- Newly practicing physicians joining ISMIE are eligible for special discounts as a way to help them get started in medicine. New physicians are exempt from the ISMIE moratorium.
- ISMIE physicians will still pay varying, individualized premium levels, based on their practice locations, medical specialties, discounts earned, and other risk factors. The ratemaking process is complex – we strive constantly to be fair, so no physician subsidizes another physician’s risk.
ISMIE utilizes 20 precise groupings of physician specialties, clustered by similar risk characteristics. Based on changing specialty risk profiles, ISMIE has made the following adjustments for the 2006-2007 policy year:
- 28 individual medical specialties will enjoy reductions ranging from 3.1 percent to 11.1 percent. These reductions are based on improved risk profiles for each affected specialty.
- Seven medical specialties will experience premium increases ranging from 5.9 percent to 22.2 percent, based on a deteriorating risk profile.
- ISMIE has established a new specialty code for neurosurgeons who do not perform certain intracranial surgery.
ISMIE rates policyholders based on the relative frequency and severity of losses in eight geographic territories throughout the state. All Illinois counties are reviewed annually for loss activities, but territorial classifications are altered only after several years of consistent trends. Five counties will experience a territory change in the new policy year with the following impact on premium rates:
- Peoria County – 10 percent premium reduction Sangamon County – 14.3 percent premium reduction Grundy County – 20 percent premium increase Jackson County – 11.1 percent premium increase
- Winnebago County – 13.3 percent premium increase
Tort reform efforts in Illinois have not yet affected the size of verdicts and settlements. ISMIE-insured medical corporations continue to experience mounting losses. As a result, the maximum premiums for corporate/entity polices will rise in the 2006-2007 policy year to 25 percent of the sum of the five highest premiums for physicians within the entity. (Previously the maximum premium was calculated as the average of the five highest physician premiums.)
Sample ISMIE premiums (before credits or debits) for policyholders
with $1 million/$3 million coverage limits in Illinois for 2006-2007 policy year
| Internal Medicine | |
| Cook, Jackson, Madison, St. Clair, Will Counties | $37,688 |
| DuPage, Kankakee, Macon | $28,688 |
| Rural Illinois | $19,688 |
| Neurosurgery | |
| Cook, Jackson, Madison, St. Clair, Will Counties | $288,484 |
| DuPage, Kankakee, Macon | $171,784 |
| Rural Illinois | $115,084 |
| OB/GYN | |
| Cook, Jackson, Madison, St. Clair, Will Counties | $138,484 |
| DuPage, Kankakee, Macon | $104,284 |
| Rural Illinois | $70,088 |
| Pediatrics | |
| Cook, Jackson, Madison, St. Clair, Will Counties | $25,088 |
| DuPage, Kankakee, Macon | $19,240 |
| Rural Illinois | $13,388 |
Go to www.ismie.com for more information on:
- ISMIE’s ratemaking process
- Affirmation of ISMIE’s rates by the Illinois Division of Insurance
- News release regarding rate change
- Calendar of upcoming Managing Risk/Risk Rewards activities
- MyRewards, your online, secure progress report of earned discount activities
- New premium discount opportunities, including the Managing Risk Fellowship Program and Risk Rewards Bulletin