Medical Malpractice Insurance Optional in Florida

The number of medical doctors in south Florida who do not carry malpractice insurance is rising. According to an article in the South Florida Sun-Sentinel about 5200 doctors in Florida opt out of carrying insurance. Florida law has allowed doctors that option for decades; however, chiropractors, some nurses, podiatrists, midwives and optometrists are required to carry the malpractice insurance. The reason given for giving doctors that choice was to help doctors to deal with the high insurance premiums that sometimes run as high as $200,000 per year.

Doctors can go without the insurance as long as they post signs in their offices and promise to pay up to $250,000 per malpractice award up to $750,000 per year.

Financial advisors now specialize in sheltering doctors’ assets from malpractice verdicts. Marc Singer, a partner at Singer Xenos Wealth Management in Coral Gables, said he advises doctors to drop coverage and, if sued, offer the patient a choice: a small settlement or get nothing when the doctor goes bankrupt.

Filing for bankruptcy gives the doctor two advantages. Federal and state laws shelter retirement funds, main home, annuities and life insurance from a malpractice award which often translates into the patients receiving nothing from a settlement. Consider the example of Jacques Farkas, a neurosurgeon, who filed bankruptcy when he was sued by two patients in 2004. Bankruptcy allowed him to shelter 2.6 million dollars in assets; he paid some creditors but the patients got nothing.

In addition, if a malpractice award does not get paid because of bankruptcy, Florida does not consider the doctor in violation so his or her medical license is preserved. Some have argued that this license preservation will attract to Florida doctors who have been sued elsewhere and cannot get malpractice coverage.