Is an RRG Right For Your Medical Practice?

An RRG is a Risk Retention Group formed by more than one practicing physician. Under this group, the physicians or medical group can take out an RRG insurance policy to cover their medical practice. There are fundamental differences between an RRG and traditional insurance coverage. By understanding RRGs and what they involve, you can determine whether or not they are the most apt solution for your medical group.

RRGs and Their Associated Benefits

RRGs offer many benefits for physicians, the primary one being lower premiums. NYS licensed carriers generally charge more than RRGs and therefore you will end up paying less every month than with a traditional policy. This can be very advantageous especially for physicians with low frequency of malpractice activity. RRGs offer an ideal option in this situation where a physician would normally pay a much higher premium.

No Free Excess Coverage with RRGs

One of the advantages inherent with standard insurance policies from a licensed NYS carrier is that they are required to offer free excess coverage with each policy. This free excess coverage amounts to $1.3/3.9 million and can be used by the physician when needed. RRGs however do not offer this amount of free excess coverage and if you wanted and/or where required to carry 2.3/6.9 (excess limits) you would need to pay for such. Though this does sound surprising the premium for the excess limits with an RRG can still be less than the standard limits in the admitted market.

No State Regulation

Unlike standard coverage with an insurance carrier who is licensed by New York State, RRGs are not regulated by the State. This means that the Risk Retention Group is free to set their own individual premiums, claims handling processes, forms, and policies. They can do all of this without needing to have anything approved by the NYS Department of Insurance. This flexibility is one of the many benefits that you may find appropriate for your practice or medical group.

Ultimately RRGs are simply another type of insurance with its own benefits, advantages, and disadvantages. By meeting with a professional insurance company such as PriMed Consulting you can receive the guidance and direction you need to make the best selection. PriMed Consulting has the experience and know how to help their clients choose the right options. If you have been considering RRGs but you are not sure where to begin, PriMed Consulting can offer you the perfect solution. They will share their tips and strategies for finding the most affordable coverage with the highest possible protection.

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