MagMutual Rolls Out Discount Plan for Policyholders Impacted by COVID-19
April 14, 2020by
MagMutual announced new premium discounts on medical professional liability policies as they renew next year for policyholders who experienced lower patient volumes in 2020 as a result of the coronavirus outbreak. Discounts will extend through to 2023 policy renewal period.
“This COVID-19 crisis has altered the way our country is delivering healthcare,” said Joe Wilson, MD, executive chairman of MagMutual. “And because of these changes, many of our policy owners are seeing fewer patients and doing fewer elective procedures. As a mutual company, we believe our policy owners should not pay the same amount of premium when they are caring for substantially fewer patients.”
The company intends to file these discounts with the respective states’ Departments of Insurance during April 2020. Upon approval, MagMutual will inform its policyholders of their new rates at renewal. The premium discount is in addition to the company’s recently announced nine-month payment deferral option.
“This means that over a three-year period, in effect, we ensure our policy owners do not pay for the exposures they did not experience due to lower patient volumes,” said Neil Morrell, CEO of MagMutual. “Coupled with our payment deferral options, our discounted premium rates also mean than the cash flow of the policyholders more reasonably follows their expected billing cycles, as they resume to normalcy.”