‘We Can’t Afford to Lose Midwifery’ Option

Your informative article about the plight of nurse-midwives denied malpractice coverage states they have two choices: to go Establishment or to go underground. However, they may have a third choice provided by federal legislation enacted in 1986.

The 1986 Liability Risk Retention Act enables businesses and professionals experiencing problems with lack of availability or affordability of liability insurance to establish their own programs by forming risk retention groups or purchasing groups.

Risk retention groups are companies owned by their members, while purchasing groups buy liability coverage from insurance companies.

The act preempts state regulation in certain areas, thereby making it easier for these groups to form and operate nationally.

Before the nurse-midwives despair, they may wish to consider this federal legislation enacted to help groups such as theirs.

KAREN CUTTS

Managing Editor

Risk Retention Reporter

Pasadena