The freeze shouldn't affect patient care and time is needed to work out the problem of high rates according to the New York Public Interest Research Group.
"We think there are a lot of problems," said group's Russ Haven. "This basically freezes the status quo going forward and is buying the governor and the various stakeholders some time to address the issue."
Physicians claim high insurance rates are driving them out of the state and reducing the availability of care.
The public interest group disagrees, saying there are plenty of physicians and high rates aren't forcing any away from New York. Haven said the complex problem involves bad doctors making mistakes and how insurance companies rate the insurance risk of physicians.
On Friday, Paterson signed the bill passed this week by the Legislature.
"A huge increase in medical practice rates would be harmful to doctors, hospitals and to the millions of New Yorkers who depend on them for health care," said Senate Majority Leader Dean Skelos, a Long Island Republican.
Assembly Speaker Sheldon Silver, a Manhattan Democrat, said the delay will lead to greater patient safety.
"New York's medical malpractice insurance rates are among the highest rates in the nation," Silver said. "This legislation allows us to continue and indeed broaden our discussions toward enhancing patient safety while stabilizing the medical malpractice insurance market."