Insurance Commissioner gets it wrong

[Observer]

Ralph Tyler gets it wrong.

Md. lays claim to doctor dividend
Malpractice subsidy at issue in ruling

Insurance Commissioner Ralph S. Tyler directed yesterday that the state's largest medical malpractice insurer pay its entire $68.6 million dividend to the state, with none going to doctors.

He delayed his order for 30 days, however, to allow the insurer to work out a different way to use some of its surplus money to keep premiums stable for physicians.

If the insurer and the regulator can't agree, doctors could face a 22 percent rate increase Jan. 1 after three years of stability. The insurer, Medical Mutual Liability Insurance Society of Maryland, wanted to keep payments level by distributing a third of the dividend to physicians as a credit against 2008 premiums.

Med Mutual had proposed returning the remaining $44.2 million of the dividend to the state, as partial payback for three years of premium subsidies.

The state created the subsidy program three years ago after several hefty premium increases pushed the issue to the forefront of the political agenda. Physicians proclaimed a malpractice crisis and warned it threatened to force some doctors to retire or relocate. The insurer blamed the rate boosts on rapidly rising claim payouts.

The biggest part of where Tyler gets it wrong is that it's not Maryland's money, but rather that of the HMO members who have been paying a 1% premium tax to fund the subsidy. More, the 1% tax was supposed to go away when Med Mutual became stable - don't hold your breath.

What are we, sheep to be constantly shorn? (Or should that be sheared?) Oh wait, this is Maryland, where "taxes are forever".

They never repealed the income tax surcharge to bail out MDIC during the S&L meltdown, either.

[Rocketwolf]

What you want the Dems to repeal a tax thats no longer needed?

[chumbucket99]

The bill sunsets in 2009 and the HMO's would pocket the difference anyway.

[jethro666]

Originally Posted by chumbucket99

The bill sunsets in 2009 and the HMO's would pocket the difference anyway.

it's our money. give it back!

[chumbucket99]

Originally Posted by jethro666

it's our money. give it back!

Your money, Mr. Big Insurance Company????????

[jethro666]

Originally Posted by chumbucket99

Your money, Mr. Big Insurance Company????????

damn right! i paid into that fund! or did you think it was begotten by faerie dust?

[Observer]

Originally Posted by chumbucket99

The bill sunsets in 2009 and the HMO's would pocket the difference anyway.

Do you have a link for that?

[Observer]

Originally Posted by Mosbie

It's the taxpayers money. Finally we have someone as Insurane Commissioner who is doing his job... protecting the consumers/ taxpayers.

Specifically, a defined set of people (HMO participants) paid that tax. They can be identified from records. THEY should get the refund.

[sloopy]

Originally Posted by Mosbie

Is that Al Redmer and Joe Steffen's line?

No, it's someone who paid into that fund and wants his money back's line. Why wouldn't you want the taxpayer to have their money back? Are you a socialist like your leader MOM?

[Boris59]

5:00 pm - time to go home!

[Observer]

Well, well... the Sun gets one right... sort of. Read this morning's edtorial. Here's how it begins:

Malpractice standoff
November 28, 2007

Maryland Insurance Commissioner Ralph S. Tyler would like to see the amount that doctors pay out of pocket for medical malpractice insurance kept as low as possible. So would Medical Mutual, the physician-owned company that is by far the state's largest malpractice insurer. But somehow the two are deeply at odds over how to accomplish this.

[jethro666]

Originally Posted by Mosbie

Ralph Tyler is doing a great job.

As a taxpayer, I want my share of what I chipped in to help out when it was needed.

"hmo subscribers" paid the freight - not "taxpayers".

[Observer]

Originally Posted by Mosbie to Jethro666

You are spinning this and are not correct.

No, he's correct. Ehrlich called a special session during Christmas week in 2004 to act on a plan he submitted to relieve a looming physician premium hike by Med Mutual. The General Assembly voted that down along party lines and then passed a tax on HMO premiums to relieve the rate pressure. Ehrlich vetoed it, and the GA overrode his veto in January 2005. The tax was passed through to HMO members except in the CareFirst HMO, which ate it for a year.

[chumbucket99]

Originally Posted by Observer

No, he's correct. Ehrlich called a special session during Christmas week in 2004 to act on a plan he submitted to relieve a looming physician premium hike by Med Mutual. The General Assembly voted that down along party lines and then passed a tax on HMO premiums to relieve the rate pressure. Ehrlich vetoed it, and the GA overrode his veto in January 2005. The tax was passed through to HMO members except in the CareFirst HMO, which ate it for a year.

and you leave out premiums were capped at 5% increases so HMO users and others benefited from savings.

[Observer]

Originally Posted by chumbucket99

and you leave out premiums were capped at 5% increases so HMO users and others benefited from savings.

You'll have to show me the part of the law that said that, because I was very interested in that law and didn't see any rate cap in it. Or are you talking about premiums to physicians?

[jethro666]

Originally Posted by Observer

No, he's correct. Ehrlich called a special session during Christmas week in 2004 to act on a plan he submitted to relieve a looming physician premium hike by Med Mutual. The General Assembly voted that down along party lines and then passed a tax on HMO premiums to relieve the rate pressure. Ehrlich vetoed it, and the GA overrode his veto in January 2005. The tax was passed through to HMO members except in the CareFirst HMO, which ate it for a year.

Originally Posted by chumbucket99

and you leave out premiums were capped at 5% increases so HMO users and others benefited from savings.

Originally Posted by Observer

You'll have to show me the part of the law that said that, because I was very interested in that law and didn't see any rate cap in it. Or are you talking about premiums to physicians?

excellent summarization observer. and if i remember correctly you're correct about the rate cap as well.

[Observer]

Originally Posted by Mosbie

THE TAXPAYERS OFF SET THE DOCS.

THE HMO WERE MADE TO PAY WHAT ALL THE OTHER INSURERS PAID.

WHY DO YOU MAKE THINGS UP THAT AREN'T TRUE?

Not making it up. The HMO premium tax was dedicated to Med Mutual. Previous to that the State gave nothing to Med Mutual, and ONLY the HMO premium tax went to them.

[Observer]

Originally Posted by Mosbie

Let the rich HMO pay their fair share of taxes... NO MORE LOOP HOLES FOR THE RICH.

The subject of this thread is the Maryland tax on HMO subscribers' premiums that was levied to bail out Med Mutual.

For-profit HMOs doing business in Maryland have always been taxed, just like any other medical insurance plans. Perhaps you could name some of the loopholes you rail against?

[jethro666]

Originally Posted by Mosbie

Let the rich HMO pay their fair share of taxes... NO MORE LOOP HOLES FOR THE RICH.

just plain nuts.