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News and Information

Long term care insurance:
An important part of your financial plan

Posted September 1, 2010

Kathryn A. Mueller, CLU, ChFC, FIC, LUTCF, Insurance Advisor

Creating a financial or estate plan may seem simple: make sure you have adequate life insurance, put money aside for retirement, set up wills and trusts. Another very important piece of this overall plan – long term care planning – often is overlooked.

During the past few years, many people have been surprised by the impact of the economic downturn on their retirement assets and portfolios. Some people who thought that they would be able to pay for long term care needs by self-funding are now realizing that they may not have the money to do this.

Long term care insurance reimburses you for care received in your home, an assisted living facility, a nursing home and more. When deciding whether to consider long term care insurance, there are several questions you will need to answer.

Will I need long term care? Statistics show that 1 in 2 people over the age of 65 will need some sort of long term care. Do you have someone who could take care of you? Do your children live nearby and would they be willing to help? Would they be available to help (do they have families that they are responsible for)? Do they have the capacity to help? Can I afford to pay for long term care myself?

According to the Genworth 2010 Cost of Care Survey, home health care costs in Milwaukee and Waukesha counties are $22 per hour (median rate). The assisted living facility median rate is $42,420 annually, while a private nursing home median daily rate is $282 ($102,810 per year). Even if there is adequate money available to pay for long-term care expenses, you may want to consider transferring some or all of that risk to an insurance company, thereby leaving the rest of your money to you and your family.

How do I choose the policy and the company that is right for me? An insurance advisor can help you decide what benefits are appropriate. Age and health status may also limit you to a few companies. You will want to look for a strong company with good financials, and you will want to know how long the company has been selling long term care insurance and if it has had any premium increases on its existing book of business. An advisor also can explain the differences between contracts.

To learn more about long term care insurance and how it fits into your financial and estate plan, call Wisconsin Medical Society Insurance & Financial Services Inc. at 414.238.6100 or 800.474.7500.

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Save premium dollars - act now

Posted August 30, 2010

Society members who are insured by ProAssurance Wisconsin through Wisconsin Medical Society Insurance & Financial Services may qualify for a 2.5 percent premium credit for each physician in their clinic who successfully completes a free online seminar as part of the Wisconsin Medical Society Member Benefit Program.

The two-hour seminar, Between Medicine & Malpractice: The Gray Matters, explores the risks inherent in common situations faced by physicians in all specialties and includes a post-test. To take advantage of this credit, physicians must complete the seminar at least 60 days prior to the renewal of their medical professional liability policy – so act now!

Through case studies, news reports and claims data, physicians will learn how time-honored risk management “truths” may require a second look and how “continuing with the status quo” may not be optimal for reducing risk in today’s increasingly complex practice of medicine. Recognizing that physicians regularly face barriers in patient safety and loss prevention techniques, this seminar offers guidance to physicians who find themselves “in the gray area” of risk management.

ProAssurance Indemnity is accredited by the Accreditation Council for Continuing Medical Education (ACCME) to provide continuing medical education for physicians and designates this educational activity for a maximum of 2.0 AMA PRA Category 1 Credit(s)™. Physicians should only claim credit commensurate with the extent of their participation in the activity.

Details are available on ProAssurance's website (click on “Seminars” and then “Physician Online Seminars.”). To access the seminar, click on “Login” (or “Sign-up” for first-time users) at the upper right corner of the home page. First-time users should allow up to two business days for their accounts to be processed before trying to access the seminar. This section also includes a list of other, shorter online programs available for CME credit.

For more information, call Mark Alighire, ProAssurance Risk Management, at 800.292.1036, extension 6329.

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Travel benefit added to WPS health insurance policies

Posted August 18, 2010

Ellen Rohrdanz, CEBS, RHU, President and Chief Operating Officer, Wisconsin Medical Society Insurance & Financial Services

Planning a trip outside of the United States can be an exciting yet stressful time. Passports, accommodations, itineraries, currency and many other details need to be in place before leaving home.

Now, all WPS Wisconsin Medical Society member health insurance policy-holders traveling abroad have added peace of mind because of a new travel benefit. This enhancement applies only to WMS physician members and their family members insured under the policy. The benefit was added at no charge to WPS member health insurance policies effective July 1, 2010.

“After a Medical Society member experienced a health emergency while on vacation, we realized the importance of a travel benefit for our policy-holders and their insured family members,” said Ellie Rohrdanz, CEBS, RHU, President and Chief Operating Office of Wisconsin Medical Society Insurance & Financial Services. “Even if high quality health care is available, there are many other concerns when a person becomes ill in a foreign country – communication issues, up-front payment requirements, medical transportation to return to the United States and much more.”

WPS has partnered with Seven Corners, an Indiana-based company that offers a worldwide medical network and assistance services outside of the United States, to provide this benefit for the Wisconsin Medical Society Member Plan. This exclusive benefit assures the highest quality of care is delivered in the best setting for you. Seven Corners’ staff members are highly skilled with medical payment in foreign currency, wire transfers of money to providers, communication in the primary language of the treating providers, and delivery of patient and family assistance in times of need.

“We are very excited to offer this benefit to our member policy-holders,” Rohrdanz said. “Whether traveling for business or pleasure, we all want to rest-assured that we will be taken care of should a medical emergency occur.”

Click here to learn more about this new benefit. If you have any questions or would like additional information about the WPS Wisconsin Medical Society Member Plan, please call your Wisconsin Medical Society Insurance & Financial Services agent at 866.442-3810.

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Insurance coverage can minimize identity theft losses

Posted June 10, 2010

Melissa Schall

Identity-theft awareness and prevention efforts are clearly growing. More and more people are increasingly cautious about providing personal information unless absolutely necessary and taking precautionary measure such as shredding documents with bank and credit card numbers.

More than 200 customers contacted a Madison-based bank one morning about phone calls indicating their accounts had been compromised (Wisconsin State Journal, April 30, 2010). Still, the Federal Trade Commission (FTC) estimates that as many as 9 million Americans have their identities stolen each year; and losses to individuals, businesses and financial institutions topped $15 billion in 2006.

Some victims spend hundreds of hours and thousands of dollars to resolve the problems that result from identity theft. In fact, the FTC says that “one of the major ‘costs’ to identity theft is the time you will spend to clear your name.” (www.ftc.gov/bcp/edu/microsites/idtheft/consumers/deter.html)

Identity theft insurance, however, can minimize losses if a theft occurs. At generally less than $100 per year, identity theft insurance provides expert guidance in identifying fraudulent accounts as well as legal, emotional and other support. Most homeowner insurance policies offer little, if any, coverage for identity theft; however, some companies offer this type of coverage as an endorsement to a homeowner policy. Identity theft insurance provides victims with a specially trained coordinator who prepares paperwork, places telephone calls and completes other activities necessary to resolve identity-theft related issues (such as reviewing credit reports, canceling accounts and removing disputed items from bills). Some policies also include reimbursement for expenses incurred, including

• Costs of executing affidavits
• Costs of certified mail
• Lost income
• Loan re-application fees
• Attorney fees

Free credit monitoring, which alerts the person to any significant changes in his or her credit report, is included in some identity theft insurance plans as well. By responding promptly and thoroughly, the impact of this devastating crime can be minimized.

Wisconsin Medical Society Insurance & Financial Services offers a wide variety of products to protect your practice, your family and your employees – including life, long-term care, home/auto/umbrella, health and dental coverage. For more information, contact Wisconsin Medical Society Insurance & Financial Services at 866.442.3810.

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More Member Benefits for 2010: Insurance Coverage for Network Security and Privacy Exposures

Posted May 25, 2010

Dave Serena

The call came in the day before Thanksgiving: “Dave, I called the Medical Society and one of the first things they told me to do was to call you, my Insurance Agent!”

We live in a new age of new exposures and increased risks, and someone was fraudulently attempting to get into the medical records at this physician’s clinics.

Data breaches are everywhere. For example, last fall a laptop containing a file with information for every physician contracted with a Blue Cross/Blue Shield-affiliated insurance plan was stolen. The social security numbers of over 150,000 physicians were in this file.

A front desk clerk for the Cleveland Clinic stole the names, addresses, Social Security and Medicare numbers for over 1,100 patients, and the information was used to file false Medicare claims in excess of $2.8 million.

“Identity theft” was the top Federal Trade Commission complaint in 2008: 9 million identities were stolen. And in 2009, over 8 million records were exposed or breached. These numbers reflect the “big picture,” but medical identity theft is a growing subset of these statistics. There is information in your clinic’s medical records that the wrong people want. Unfortunately, sometimes they succeed.

Medical records and billing information are a clinic’s biggest exposure risk, while the biggest treasures for criminals are matching names and addresses, along with drivers’ license, Social Security, credit card and Medicare numbers. This information can come from multiple sources: lost or (stolen laptops) or data storage devices like flash drives, employees who steal data, “un-encrypted” e-mail messages, accessing the Internet in a way that is not “secure,” hackers, etc.

The results can be staggering to a practice. The loss of goodwill can be immeasurable, and the financial impact has the potential to be significant.

Under the HITECH Act, the Secretary of the Department of Health and Human Services potentially can levy fines of up to $50,000 per HIPAA violation and up to $1.5 million per violation of identical HIPAA requirement or prohibition per year. In addition, the HITECH Act establishes specific guidelines for determining if patients must be notified if there is a breach. (For more detailed information about the HITECH Act, click here).

To help protect our physician members who are insured for medical liability through Wisconsin Medical Society Insurance and Financial Services, the Society has collaborated with ProAssurance Wisconsin to build the following coverage components into the malpractice insurance contract, all at no additional costs:

• Network Security (suits from patients or customers): $50,000
• Regulatory Claims: HIPAA (includes fines and penalties): $50,000
• Customer Notification and Credit Monitoring costs: $50,000
• Data recovery costs: $5,000

Please note, the items in the first three bullets represent a combined single limit, including defense costs, per incident. An additional option, which requires underwriting approval, is a $1 million limit option for members who would like a higher “Network Security” limit. The estimated annual premium for the $1 million limit option for a group of three to five physicians is approximately $2,063; a group of six to 10 physicians is approximately $2,813. Prices may vary depending on individual account specifics.

For more information, contact your Wisconsin Medical Society Insurance Agent or The Wisconsin Medical Society Insurance and Financial Services Inc. 330 E. Lakeside Street Madison, WI 53715 866.442.3810

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The Real Cost of Malpractice Coverage

Posted April 28, 2010

Russ Heil, Heil Financial Group

You may not be aware of “consent to settle” clauses in professional liability coverage, but it’s important to know about them since Wisconsin law does not allow them. Because of this law, insurance companies can settle any malpractice claim without a physician’s consent.

It’s even more important for you to know how a company handles claims. I have been working in this market for 27 years. During this time, I have had many clients share with me their experiences on how different companies operate.

One of my clients, a physician who works at a company with a good reputation, found himself in a sticky situation. Without his consent, the company settled a $500,000 claim. This settled claim is now a part of the physician’s practice history. Because settlements are reportable to the National Practitioner Data Bank, this type of action can have a negative impact on a physician.

I have another physician client who went through this process with a different company, a company that believes in defending physicians rather than settling malpractice claims in an effort to save time or money. This company went to trial and fought a claim against the physician. Today, that doctor does not have a plaintiff verdict as a part of her practice history.

There are insurance companies in Wisconsin that are more likely to defend physicians, and there are insurance companies that settle a very high percentage of claims against physicians. While every outcome depends on the facts and circumstances of the particular case, wouldn’t you want the kind of company that fights for you rather than settling and potentially affecting your record?

For more information on malpractice insurance, call Wisconsin Medical Society Insurance & Financial Services at (866) 442-3810 or their authorized representative, Russ Heil of Heil Financial Group, at (800) 236-4345.

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When do you need to purchase life insurance?

Posted July 9, 2009

As a member of the Wisconsin Medical Society, you can request affordable coverage today!

Many Americans are unwittingly putting their families at risk of a financial disaster. Nearly a third of Americans don’t have any life insurance coverage. And among those people that have coverage, 40 percent believe their current amount isn’t enough, according to Facts About Life 2006: America’s “Love-Hate” Relationship with Life Insurance (September 2006).

Why do so many people lack insurance protection? Many people put off purchasing life insurance because they cringe at the thought of planning for their own demise. However unpleasant it may be, your decision to purchase life insurance can impact your family’s plans for the future. That’s because a life insurance benefit can be used by your loved ones to pay for everything from final expenses like a funeral to living expenses such as mortgage payments, student loans and groceries.

But the persistent feeling among consumers is that, despite the odds, they are somehow immune to the hard reality of an untimely death. The truth is, a 35-year-old man has a one-in-six chance of dying before reaching retirement age. The odds are only slightly better for a woman of the same age, who has a one-in-nine chance of dying before age 65, according to The Changing Face of Mortality Risk in the United States by Daniel Theodore.

As a Wisconsin Medical Society member, you have the opportunity to request life insurance at affordable group rates. Take advantage of your Society membership and the benefits that go along with it and apply for the Member Life Plan today. Click here to apply, and click here to find out more about when you should buy life insurance.

Wisconsin Medical Society Life Insurance coverage is issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102. A Booklet-Certificate with complete Plan information, including limitations and exclusions, will be provided. Contract series 83500.

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Loss prevention, higher deductibles may help your practice save money

Posted July 9, 2009

There are more than 25 million small businesses operating in the United States today, yet many of their owners are not taking advantage of ways to save money on their insurance. In lean times like this, it is even more important to evaluate your business’s habits and consider ways to reduce spending while boosting profits.

Wisconsin Medical Society Insurance & Financial Services can provide invaluable advice to help protect your business. It is important to keep us informed about any changes in your business operations, such as a major purchase, expansions or changes in hiring or the nature of your operations. Remember to not skimp on important coverage or cancel coverage to save money.

Please contact your Wisconsin Medical Society Insurance & Financial Services agent directly or use our on-line contact form so we may tailor your plan to work with your specific needs.

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ProAssurance Wisconsin offers eligible members premium discount for EHR implementation

Society members with group medical professional liability insurance through ProAssurance Wisconsin Insurance Company (formerly PIC WISCONSIN) may be eligible for an additional 2.5 percent credit if their Electronic Health Records (EHR) system is accredited by the Certification Commission for Healthcare Information Technology (CCHIT). This credit is available only to Society members who purchase this insurance through Wisconsin Medical Society Insurance Services, Inc. To apply for an EHR credit, a member’s group practice must complete an EHR authorization form, available here, and return it to Wisconsin Medical Society Insurance & Financial Services, Inc.

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Archive of recent Wisconsin Medical Society Insurance & Financial Services, Inc. News & Information