According the Insurance Department, the rate hike which was approved on Monday, is lower than what insurers had requested and "is necessary to avoid further financial deterioration of the companies and perhaps an irreversible crisis in an already severely distressed market."
Governor Spitzer has called for a task force headed by State Insurance Superintendent Eric Dinallo to address the fundamental causes of high medical malpractice costs. The task force, which will report back to Spitzer by the end of the year, will include state Health Commissioner Doctor Richard Daines, as well as representatives of physician and hospital groups, the insurance industry, consumer groups, health plans, trial lawyers, and state lawmakers.