A community of 30,000 US Transcriptionist serving Medical Transcription Industry


Alltype and Liability insurance - MEM


Posted: Apr 17, 2010

Does anyone know where to go to for the liability insurance due to HIPPA?  Alltype is requiring this now.

Are you an IC or an employee? - nm

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x

Liability Insurance - Happy MT Robin

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Has Alltype shown you the actual legislation that is requiring you to have the insurance?

If they have not shown you a copy of this alleged legislation requiring you to have this insurance, don't do anything unless and until they do.

I know I'm going to sound repetitive on this subject, but it's one I am very familiar with as I used to sell insurance.

The type of insurance that they are saying you need to get will cost you $1500 a year. It is NOT available as a rider through your homeowners insurance as some people have been led to believe. Homeowners insurance covers your actual home and the tangible belongings in your home and it covers general liability if someone is at your home and trips and falls or receives physical harm in some fashion.

The liability insurance that the MTSOs are trying to require MTs to get is called Professional Liability or Errors & Omissions or E&O. This is very specialized insurance that is only available through an insurance broker and only an insurance agent can go to that broker to purchase the policy. The public does not go to the brokers directly. Errors & Omissions insurance is put in place to provide defense for professionals if an error or omission they make in their product causes harm to someone else. The best example of this is medical malpractice insurance. Insurance agents themselves will get E&O, for example. If an agent does something that leaves a client uninsured he can be sued and the E&O insurance would then provide defense and/or settlement.

My whole argument against an MT being required to get E&O Insurance (outside of the $1500 a year cost which is prohibitive) is the very simple but major fact that the dictator is REQUIRED to sign their reports. When they sign those reports they are verifying that the information contained therein is correct. That right there lets the MT off the hook for any liability. The dictators are required to sign their reports by their medical malpractice carriers and if they do not sign their reports, they can be denied coverage. If there was a lawsuit and somehow the name of the MT was brought into it, then either the doctor's medmal insurance would cover defense for the MT, or the MTSO's insurance could cover the MT. Unless you are an MT contracting directly with the doctor, this type of insurance is absolutely unnecessary. I personally believe that even if you are an MT contracting directly with a doctor you still don̢۪t need E&O insurance because the doctor's medmal covers any suits that may occur, but the argument could be made that the MT contracting directly with the doctor would need it.

This same argument can and should be made for any HIPAA violations, which is why I think a lot of these MTSOs are now trying to pass this cost on to the MT. The typical at-home MT uses the MTSOs platform and/or software. The MTSO is the one responsible for how much demographic information an MT is allowed to see. Some of the companies out there give their people access to old reports, etc., which is helpful when you have a cr@p dictator, but it gives an unknown person way too much information about the patient. If there is a breach and a lawsuit ensues, it is up to the MTSO who is providing the platform and/or security to also then provide defense if the MT is actually named personally in the suit. I also personally believe that the instance of a single MT being sued like this in the case of a purely accidental breach is about the same odds as winning Powerball Lottery (although I keep trying on that one.) This, of course, doesn't cover the MT who is actually breaking the law and knowingly sharing patient info. They're on their own for criminal charges for that one.

My other big pet peeve about this whole situation is the fact that no one has actually produced a copy of any legislation or ruling that is saying that the MT is the one who should be carrying this type of insurance. I'm an IC and I've done some research on it and I haven't found anything and the company I contract with hasn't said anything about it. If someone's got it, please post it because I'd love to see it.

So, if you really want to do this you can go to the agent who sold you your homeowners policy, or if you're not a homeowner, you can go to any independent insurance agent or any State Farm, Farmers, Alltate, agent, etc. Make sure you use the phrase Professional Liability Insurance. There is a miscellaneous category that MTs will fall under. If the agent gives you a quote right there in the office and it's not in the $750 to $1500 range a year, find another agent because this one doesn't know what you're talking about. If they tell you that this can be done as a rider on your homeowners policy, find another agent because this one doesn't know what you're talking about.

Before all that, I'd go to Alltype and ask them some very specific questions along the lines of what type of defense they think this insurance is going to be used for and why you are being required to carry it and why their insurance wouldn't cover defense for you in the case of a breach, if that's the road they're going down.

Excellent post - hope everyone reads

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The doctor is responsible for the content of his dictated report.

Liability Insurance - MEM

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Do you work for Alltype?

If insurance is for HIPAA, it's to protect against - deb

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personal medical information becoming public, not the accuracy of the reports.

Right, but the same principle applies - Happy MT Robin

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The MTSOs insurance should be the one that is used for defense if any breach occurs, since for most MTs it's the MTSO's platform and/or software that is being utilized.

I personally just strongly believe that this cost should NEVER be passed on to the MT as an individual.
What About HITECH - TranscenderMT
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If the doctor who signs the report is verifying that the information contained therein is correct and accurate, then why should MTs be threatened with termination if an error occurs in patient name or MR number, etc due to the HITECH rules now in place. Demographics get more and more involved and time consuming with the MT being burdened with researching doctors' names, addresses, etc. because any violation will now be reported in writing to the patient, who can, in turn, file a lawsuit. If the doctor signs the report he/she should be aware of the patient's name, the MR#, the doctor to which they wants a copy to be sent, etc. While, as MTs, we are expected to make sure this information is accurate, we are human and there are times when a patient's name is even spelled incorrectly by the doctor. This should all be covered under the doctor's malmed or the MTSO's liability insurance. When the day comes that I have to buy liability insurance, that will be the day I hang it up for good.
Exactly my point. - Happy MT Robin
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You said exactly how I feel. My other big pet peeve in this is the fact that all I have heard is anectodal information about how supposedly MTs are going to be sued, etc., blah, blah blah, but not one person or MTSO who is now trying foist this cost off onto the MT has actually showed a copy of the legislation or the ruling or the whatever it is that they are seeing that is making them do this.

Seriously. If anyone out there has a copy of anything remotely resembling these requirements, please post them because I've looked and I can't find them and I'd dearly love to see them.

Unless and until that type of information is produced, I stand by my opinion that this falls on the doctor or the MTSO and not on the MT and I would never purchase E&O insurance for myself for this business.
Professional Liability Insurance - Guppy
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I was recently hired as an IC and, one of the requirements was to have liability insurance. After getting many quotes, ranging from $1800 - $2500, I was freaked out. I finally discovered that if I joined AHDI ($135), I could get it through them for $325. That's the IC price - for an employee, it was less than $100. I still don't fully understand why my employer requires it, but as a newbie, I was thrilled to get ANY offer and wasn't about to argue. So, anyway, if you MUST get it, I suggest going through AHDI.
Make sure you read your declarations page, then. - Happy MT Robin
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Make sure you read your declarations page and then your exclusions page to find out EXACTLY what this policy is going to do for you then. The dec page is always the first or second page of the policy. It consists of what the policy WILL do for you or cover you for in the event of a claim. After that you will have a page or several of Exclusions. As insurance people say it "they give it and then they take it away." The exclusions portion of this is very important because that is what they will not cover you for.

Again, I'd also go back to your employer and ask them specifically why they want you to carry this and what kind of situation they think will occur for which you will need this defense. Make sure that the policy limits that your employer wants are the same as what the policy is for. Most policies of this type have $1 million/$2 million limits, meaning you have up to $1 million in coverage for any single event or a total of $2 million coverage for the whole policy year (or aggregate).

Make sure that the policy will actually cover you and cover any kind of defense and/or settlement for the kind of situation that your employer thinks is going to come up. Also, make sure that the policy limits cover you totally. Some companies offer "group" policies for things like this and you think you are covered by the whole policy limit, but it is a group of people who are buying into the same policy and the same policy limits totals. What that means is if the policy limit is $5 million, if there are 200 people named as insured on the policy and say all 200 people got named in the suit, that $5 million has to cover every one in terms of attorney fees for defense and any possible settlement. If it doesn't, then you still can be on the hook individually for the money. For the price that you're talking about for this type of insurance, I'd be willing to bet it's this type of policy. It's a moot point, since I don't think you're ever going to get sued, but still, I don't think it's a good type of policy to have.

I really hope that this trend of employers trying to foist this cost off onto the MTs dies a quick death. It's people who don't understand the actual liability that may or may not be present that are making these kinds of decisons and it's only serving to scr#w the MT in the process.
It is just another way AHDI is trying to get money from MTs who are employees. - I could understand IC
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As IC, you ARE the MTSO. As an employee, you are the representative of the company. Happy Robin stated it very concisely when she said that if there is a breach in HIPAA, other than purposeful breach by the MT, then it falls on the MTSO for faulty security. Have we ever heard of employees of companies being sued in lawsuits? If someone sues Toyota, are they suing the employee? Did the woman who sued McDonald's for hot coffee sue the employee that sold it to her?

I think AHDI is just trying to cash in on a new idea that the MTSOs are trying to sell. Why else would they offer it for $100 for employee compared to $325 for IC. They already know that the MTSO's liability insurance is going to cover any damages. They're raking in $100 and paying out nothing. That's why.
Guppy - Nick
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If AHDI had a gun in their hands, we would call it extortion.

What a great, common-sense post! - alice b

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This is such an intelligent post! Have been researching also and this federal law (like all law) is based on common sense. Intent is considered and financial gain and/or malicious intent are important factors. It is not reasonable that an MT who makes a mistake in the course of doing her job(often as a direct result of inaccurate and incomplete information and/or substandard dictation with which to work) would be held liable in a court of law. Her company has the option to fire her but lawsuit? Come on. I would like to see actual documentation of that also. This boogeyman is being used as a scare tactic by MTSOs whose rules and instructions regarding demos, c.c.'s, etc., are often ambiguous, incomplete, contradictory, and usually about as clear as mud, to the point that their own personnel have conflicting opinions and can't make heads or tails of them. So let's threaten and try to scare the MTs. I would like to see the lawsuit that actually held up in court. It's also not inconceivable that insurance vendors, AHDI, MTSOs might financially be ''in this together'' as far as getting MTs to buy into this baloney. Great post, Happy Robin.

Great post Robin - darlene

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Gonna save this post to my PC. I was offered a position with ALLTYPE awhile back and turned it down because the requirement for insurance, but mostly I felt, when the report leaves me, I have no PROOF, it was the way I DID IT. The QA can change, hospital can change, dictators can go in and make changes etc. Since we cannot keept the audio or the final copies, no proof it was the "original". I feel like a sitting duck. I felt it was just plain scary situation. I will take responsibily for my reports, but gad who knows if it was my "original report". Good point, the dictators required to sign/okay reports.
thanks for info.

As an IC, you are a company. Every hospital I have ever contracted with sm - MTSO

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requires $1,000,000/$3,000,000 liability insurance. Since anyone who is an IC is not an employee of the transcription service, they are not covered under the transcription service's insurance.

If you insist on being an IC, it is a cost of doing business, just like having your own equipment. It is also a write-off, like any other expense.

We stopped using ICs last year because of the need to start having schedules due to turnaround times not being met and because it has become cost prohibitive for someone to be an IC.

This is not a complaint or a whine, but a fact: Everyone complains that rates have not changed in 15 years or have gone, but the expenses of being an MTSO have increased dramatically from taxes to insurance to technology. I have 26 employees right now, and I would love to have ICs again due to costs.

Best Advice Ever - Neither a MT nor MTSO

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As a contractor, you are a business. Please discuss these matters with your accountant and/or lawyer. Any advise you receive here needs to be accepted with a grain of salt.

As an employee, please discuss these matters with your companies HR rep.


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