Insurance Archives - Medical Spa Liability Coverage Leader

3 Steps to Choose the Best Med Spa Insurance

Whether you are thinking about opening a new wellness center, integrative medicine practice or medical spa, or you’ve been practicing for years, it’s imperative to have the best insurance for your practice! And it doesn’t hurt to double check your policy from time to time either.

Often, at the Wellness Medical Protection Group (WMPG), we find medical spa owners or physicians contacting us after realizing their purchased coverage is not sufficient to properly cover the full scope of their operations. Many times, this realization occurs after an uncovered claim.In many circumstances, it can be challenging to assist providers, after a claim has been made against them.

Be Proactive! Your practice longevity and livelihood will thank you for it. Consider the following tips:

STEP ONE:

Select the right insurance Agent.

Selecting your liability coverage is equally as important as selecting your agent. It’s like when you are utilizing a real estate agent to sell, rent, or purchase a property. The representative who exercises the best knowledge and skill set in buying and selling homes, will likely be your preferred candidate for the job. This is no different with your insurance.

Integrative Wellness and Medical Spas are highly skilled niche practices and it is important that your agent keep up with the different types of services and products offered in the market. By understanding your business in depth, they can assist you in obtaining what you’re looking for and help to educate you on what’s happening in your market.

At WMPG, all of our agents are trained, licensed and insured to assist you specifically on your practice. This is our specialty and we are involved with clients nationwide, this provides us great insight on claim trends. Get to know our agents & interview us.

We are constantly sharpening our knowledge by regularly are communicating with regulatory agencies, attorneys, insurance carriers, and clients of all sizes in the wellness market. We have put together solutions to continue in supporting the market. Initially, when the market was in its infancy, our founders started with a handful of clients starting out in the industry. The industry has grown and evolved, and it will continue to do so.

STEP TWO:

Dealing with the right carrier for the right reasons.

Every client we come across is unique in their practice approach, therefore each policy needs to be customized to their coverage needs. Over the last twenty years, WMPG has contracted with all of the major A rated insurance carriers that provide coverage for the alternative medical market. We believe it is best to have a more broad selection of coverage options because not every carrier may be right for you.

Let’s go back to our example in Step One, selecting the right agent. Just like selecting the right real estate agent, it is counterproductive to have two agents working for you at the same time. Not only that, it is difficult to do the job properly because when the first agent you select begins to obtain quotes from the carriers for you (regardless of how many carriers they may or may not have access to), the second agents will get blocked from the market entirely, and they can no longer work to provide you a true assessment of what’s the best quote or even access the most competitive carrier for you.

At WMPG, we have been working with many of these carriers for more than 2 decades with a well-established rapport. After we receive your application, we are able to assess the best carriers to target for the most competitive quotes providing you the coverage that you need.

Things to consider when selecting a Med Spa policy:

1) Am I covered?

Am I covered for cyber security and HIPAA breach?

2) What’s included and what’s excluded?

Are Non-FDA Approved products, compounds or services included or excluded in the coverage or addressed?

3) Coverage for Personnel

Is there coverage for the personnel that are directly or indirectly working with my practice?

4) Legal Defense Coverage

Do I have legal defense coverage for any investigations, board complains, claim filings, or proceedings?

5) Fines and Penalties

Am I covered for regulatory fines and penalties?

6) Supplements and Skin Care Coverage

Are my supplements or skin care products that I provide my patients covered?

7) Renter and Fire Liability Coverage

Is there renter or fire liability coverage in case anything happens to my practice?

STEP THREE:

Cover the Basics

Don’t miss the basics! Often you are excited to hurry through the insurance process and might miss one or two required elements for your practice to be FULLY protected.

Make sure you double check property coverage, general liability and any business interruption insurance. You can plan, project, and work hard towards your goals and your patient goals, but you can’t predict all outcomes. It’s not worth it. Consider a strong policy as an investment for your practice and livelihood’s longevity.

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Insurance, Wellness Centers

Premiums Are On The Rise: Why & How Will It Impact Your Practice

WELLNESS CENTER & MED SPA INSURANCE PREMIUMS ARE ON THE RISE: WHY IS THIS HAPPENING & HOW WILL IT IMPACT MY PRACTICE?

You might be a start-up just entering the exciting world of Integrative Medicine or may have several years of experience in the industry with historically no insurance claims made. Unfortunately, the insurance market works by calculating the average, based on the sum of all practices. In other words, the integrative medicine market receives risk scores based on the average by key categories of their policyholders collectively, rather than the individual practice or policy holder themselves.

Six Key Categories Impacting Your Insurance Policy Premium:

1) Years of practice:

The magic number is five years. This is enough time to provide history in the eyes of the insurance carriers for a good standing account.

2) Claims:

How many and how much? One of the most impactful claims rating factor is your claims history. Underwriters heavily consider how many claims you have had during your experience and how impactful they are. Was the claim closed? Was there a large settlement or jury verdict?

3) Service Type Risk:

Services such as Stem Cell Therapy & PRP are impacting the ENTIRE industry and most importantly the providers practicing properly. There have been many claims and lawsuits filed for these categories, not long after gaining exposure and increased interest in the market. Some insurance carriers are opting to offer significantly increased premiums, offering reduced limits of liability or even excluding coverage for these services all together.

4) Procedure Volume to Personnel Ratio:

High volume of procedures and limited staffing is perceived as a greater risk for potential error that can result in a valid claim.

5) Training & Expertise:

Providers are requiring formal training, certifications, accreditations and education as coverage policy is not only reviewed based on the business practice but the expertise level for the service that is being provided. Investing in the proper education can result in better business practices, mitigating risk and avoiding premium increases. If you would like to receive information on our credible partners offering training & certification courses, connect with us and receive a partner discount.

6) Business & Professional Liability Licensing:

Is your license in good standing or are there any pending or outstanding issues? This category is heavily weighted for the underwriters risk assessment of your practice.

PREMIUM INCREASES: WMPG CURRENT SNAPSHOT & 2020 OUTLOOK

At the Wellness Medical Protection Group, we continue to service thousands of providers across the United States for a vast variety of liability coverage for professional services. Here are our observations:

SIX WMPG CRITICAL MARKET OBSERVATIONS TO KNOW

1) Increase in Demand

There is an increase in claims for the medical malpractice class overall

2) Increase in Minimum Premiums

Increase in minimum premiums and base rates as companies make business changes and adjustments, especially for certain procedures. There is an overall increase in minimum premiums and base rates for medical malpractice as a whole.

3) A Rise in Renewal Pricing

Average renewal pricing is increasing. These increases are ranging from 20% to 50% depending on the service type

4) The Underwriting Process

Rigid underwriting process with insurance carriers and a decrease in limits of liability for procedures, especially Stem Cell Therapy

5) Exclusions in Coverage for Procedures

Claims coverage exclusions for no evidence of certified procedure training

6) Exclusions in Coverage for Patients

Claims coverage exclusions for no evidence of signed patient consent forms

MARKETS LEAVING MEDICAL MALPRACTICE

Many insurance carriers are opting to limit their exposure to medical malpractice by omitting coverage for high risk services. Others are opting to leave the market altogether. As a result, underwriters for many carriers are taking their time during reviewing each application. When an application is incomplete, they are putting it in a large incomplete pile that may delay the renewal of the policy.

FOUR STEPS TO CONSIDER WITH YOUR INSURANCE APPLICATION

1: Fill out the application in its entirety.

The carriers are heavily focusing on training & expertise for services, personnel to service ratio, the volume of procedures and the total revenue produced from all services. Make sure this information is listed on the application!

2: Be Proactive.

Assess your practice 90 days before your policy is renewed. It’s good to start early so you don’t end up trying to find coverage last minute! Speak to one of our highly-specialized Agents to successfully assist you in your new application or renewal. We can help guide you through the process and ensure you are getting placed at the top of the compliant stack of applications.

3: Assess your current policy!

Compare it to your practice as it stands today. Your application becomes a part of the policy, this is a great place to look to compare past and present. Let us help you review your current policy and spend five minutes of your time with one of our highly-specialized Agents to run through a few questions. Identify any exposure and find a solution.

4: Be honest!

Developing a rapport with your insurance carrier as a trustworthy client will make the underwriting process more seamless. Underwriters who identify any findings that are not disclosed, may determine to decline a new insurance policy or renewal.

MY INSURANCE POLICY PREMIUM IS HIGHER THAN LAST YEAR, NOW WHAT?

Your immediate instinct is to have your WMPG agent shop the policy right away. Our agency is contracted with all of the major A rated surplus line carriers in the market. We have the ability to look at alternative carriers, compare & contrast policy coverage vs. pricing and any exclusions.

In some instances, this may not be the way to go! For example, a practice may have been in business for years with a healthy track record and minimal to no claims and they decide to have their WMPG agent switch carriers for them. Starting over with a new carrier means no premium history.

Let’s look at the math:

Assume the medical practice ABC Wellness has been with a carrier for six years and the insurance policy premiums respectively are:

Year One: $11,000

Year Two: $11,250

Year Three: $11,250

Year Four: $11,500

Year Five: $11,750

Year Six: $12,000

Total: $68,750.00

With minimal to no claims, the WMPG agent can position a statement of premium credit history to the carrier and remind the underwriter of ABC Wellness track record.

With a new carrier, the historical track record doesn’t exist because the new carrier did not benefit from the premium payments. You may be saving money, but starting over may have its risks.

CASE BY CASE, WMPG AGENTS ARE READY:

Our agents are equipped with combined experience of over 30 years, exclusively in integrative medicine, wellness practice, and medical spa surplus line insurance. We are ready to stand by you and work with you, each step of the way.

In some instances, establishing a new policy or renewing will be very seamless, and immediate changes will be minimal. Regardless, every client is unique in their practice operations. Our agents treat each opportunity, on a case by case basis by considering the following:

1) Assess Your Practice

Assessing your practice and coverage requirements

2) Recommendations

Recommending practice documentation or additional training course recommendations.

3) Investigation and Assessment

Investigating any current policies for coverage types and any exclusions or potential pitfalls.

4) Customize Your Policy

Customizing your practice policy, targeting the top carriers related to your practice services, and acquiring the most competitive quotes for your coverage requirements.

Schedule a consult with a WMPG agent and let us worry about all of your insurance needs. Regardless of what is happening in the market, we understand you and your practice. We know how busy your days already are and look forward to taking on any of your insurance needs or challenges so you do not have to.

CBD, Insurance

CBD Craze: What Providers Need To Know

Majority of Americans are Familiar with CBD Products

Cannabidiol (CBD) is popping up everywhere and patients may already be asking you about it. A recent GALLUP poll conducted on the American’s Use of CBD Products represented 50% of Americans are familiar with CBD products and an additional 14% are using CBD products today.

CBD 101: Help your Patients Avoid Confusion

We surveyed many of our providers and asked them what are your patients asking you? Here are the top Frequently Asked Questions:

1) WHAT IS CBD?

CBD (cannabidiol) is one of over 60 active chemical compounds (or ‘endocannabinoids’) found in the hemp plant. Different endocannabinoids target specific receptors located throughout the body.

2) Does CBD come from Marijuana or Hemp? What is the Difference Between the Two?

The major differentiator is the THC Content in the Cannabis Sativa Plant. (The Cannabis Sativa is the plant species and can be either Hemp or Marijuana depending on the levels of THC)

The simplest answer:

If the Cannabis Sativa plant is < 0.3% of THC = Hemp Plant

If the Cannabis Sativa plant is > 0.3% of THC = Marijuana Plant

3) What’s the Difference Between THC and CBD?

THC affects the brain by binding to naturally-occurring CB-1 receptors in the central nervous system. CBD is a differently-shaped molecule that binds to CB-2 receptors in cell and body tissues outside the central nervous system.

4) Will CBD get me High?

No, CBD will not get you high. THC will. THC in marijuana is found in large concentrations and is the molecule responsible for the psychoactive effects (binds to the brain cell receptors)

5) HOW DO I TAKE CBD?

Most CBD products are taken orally via oil drops that are placed under the tongue and held for 60 seconds before swallowing. It is also found as a topical cream, ointment, roll-on, or is vaporized and inhaled.

6) What is CBD Oil?

CBD oil is a liquid cannabis extract that contains CBD and other terpenes. It’s commonly removed from the hemp plant parts (flower, leaf, stem and seed respectively).

7) How does CBD Work?

CBD functions by binding to cannabinoid receptors in the body’s endocannabinoid system. These receptors have been found in virtually every cell and tissue type in the human body (hence the seemingly endless array of CBD uses).

8) Is CBD Legal?

CBD derived from hemp falls under The Hemp Farming Act of 2018. It removed hemp from Schedule I controlled substance opening the rapid expansion of the industry. The FDA has not approved CBD products with unproven medical claims. CBD products CANNOT make any claims to ANY health benefits and are the target of many warning letters.

9) Is CBD Natural?

Yes, CBD is a 100% naturally-occurring chemical compound that comes directly from the cannabis plant. It is not synthetically made. However, the market is heavily unregulated and patients are required to “trust” CBD product manufacturers and their voluntary vigorous testing practices.

10) Are there Side Effects of using CBD?

Because the industry is new, side effects reported are minimal and scarce. Project CBD is a non-profit organization strictly dedicated to documenting the research progress on CBD.

11) Will CBD Show up on a Drug Test?

CBD products may have THC and it is important to check with the manufacturer of the CBD and request third party tests that showcase THC ND. This is the only way to insure THC will not appear on a drug test, with every LOT made.

DOWNLOAD THIS CBD 101 FAQ AS A PDF FOR YOUR OFFICE AS A RESOURCE FOR YOUR PATIENTS.

CBD Market Pitfalls

The hemp quality dilemma is very real: many of the sourced CBD ingredients are low in potency, contain pesticide or harmful residual solvents as a byproduct from extraction. Several thousand companies offering CBD products are less than a year old and novices in the industry. CBD prices are constantly fluctuating because there are more middlemen then there are products sold, driving prices up and impacting continuous supply of quality CBD.

Preparing your Practice to Carry Good CBD Products

3 steps to take if you decide CBD is right for your practice:

1) Selecting the right vendor:

Check the vendor’s state license
Identify the vendor’s CBD source and review testing
Ask where the products are manufactured
Ask for samples that include lot numbers and third party lab testing for the following:
- Identity Test
- Potency according to the label
- Microbiology
- Heavy Metals
- Residual Solvents
Years in Business
CBD Product Liability Insurance Policy

2: Are you protected?

Check your policy and see if it covers provider services for CBD and CBD products. If you’re not sure. Schedule a consult and we will review your policy for you at no cost.

3: Consent Forms & Disclosure

Make sure your office provides patients with the proper disclosure and consent forms.

The Wellness Medical Protection Group has a vigorous program that only ensures CBD companies that are qualified. If you are interested in a list of CBD companies that have passed our standards, feel free to request more info.

I’M INTERESTED IN PRIVATE LABELING CBD, HOW CAN I BE PROTECTED?

Many companies will offer you the opportunity to private label CBD. What they may not tell you is that all the risk falls on the seller with the name and address on the label. This puts the burden on you!

Overall, CBD is on the rise as if it were 2007 and BHRT all over again. Stay ahead of the industry and be smart about providing good CBD business practices at your wellness center. Let us help you continue to tailor your freedom to practice.

Hormone Therapy, Insurance

Bioidentical Hormone Replacement Pellet Therapy

BHRT Pellet Therapy demand is on the rise but so are the pitfalls.

BHRT Pellet Popularity on the Rise:

There have been incredible advances in the world of bioidentical hormone replacement therapy (BHRT) that have allowed providers to accurately customize BHRT to a patient’s specific needs. It is compounded in a variety delivery methods including creams, ointments, capsules, troches, lozenges, transdermal patches, liquids and pellets.

BHRT pellet popularity continues to grow rapidly because one treatment can last up to three months without the need for daily use like many other delivery methods. This is the preferred option for many providers and patients, however, not everyone is a good candidate since pellet treatment is irreversible for up to three months. Many providers prefer to start with alternative methods until they can establish a baseline for patients to begin BHRT pellet therapy.

How are pellets inserted?

Patients are scheduled for a 10 to 20-minute procedure at the provider’s practice. The provider will administer a local anesthetic and make a small incision near the hip or on the buttocks to insert the pellets under the skin (subcutaneously). They will use a tool known as a trocar to insert up to ten pellets (testosterone, estradiol, and or progesterone) at a time. These pellets typically last up to three months, however, depending on the patient, it can range from two to six months.

Market Pitfalls: What’s being Reported

The popularity of convenience, the aspect that it is all natural, and having pellet therapy performed under supervision of a provider is a huge added plus. However, not all pellets are made equally! Neither the provider nor the patient have much control over each lot produced by a compounding pharmacy. An establishment of “trust” with every pellet order doesn’t provide the means of acquiring BHRT pellets made right every time. This is because BHRT pellets are compounded and dispensed under less regulated standards of other HRT treatments. Not to mention, the minimal options for trocar kits that are available on the market to conduct these procedures properly.

Without a strong regulatory measure of the compounded pellet or the trocar kit, the provider must conduct the proper due diligence to ensure that patients are receiving the proper procedure and pellets. The FDA put out a statement on the matter to improve adverse event reporting to protect providers and patients by educating them of the unknowns (See: Statement of Improving Adverse Event Reporting of Compounded Drugs to Protect Patients)

Mitigate Your Practice from Malpractice Lawsuits & Seek Proper Protection:

Many providers tout the benefit of BHRT pellet therapy but fail to mitigate risk. BHRT Pellet therapy is remarkable for thousands of patients, but like other treatments, it is not good for everyone.

Consider These Best Practice Principles:

1) Document Protection

Ensure your documents have the proper disclosure and consent forms.

2) Review your Policy

Review your policy for defense attorney coverage. Great surplus lines policies have defense coverage that can assist you as early as an investigation inquiry by an inspector or at the beginning of a claim or lawsuit filed. It is pivotal to have good policies implemented in your practice so you are not completely distracted by anything that may come your way. Not sure about your coverage, send us your policy and we will analyze it to assess your protection.

3) Vet Your Suppliers

You are the first person responsible for the BHRT pellet procedures and the patient outcomes. VET YOUR SUPPLIERS. If you are interested in vetting your current supplier or have questions or are looking for vendors that have good business practice, connect with us today!

4) Disclaimers and Disclosures!

Sales & Marketing cements the expectation of your current and potentially new patients. Stop listing the hundreds of things BHRT Pellets can do and advertise responsibly. Ensure your materials, website and any other promotions have the proper disclaimers and disclosures!

BHRT Pellet therapy demand will continue to grow and it’s important your practice is there in the long run to continue to service the demands of patients wanting a healthy and better life. The advances in this market are impeccable, but rapid. Applying the simplest changes in your practice will go a very long way and your patients will continue to love you for it!

Insurance, Stem Cells

Stem Cell Therapy: 5 Questions That Matter To Your Practice

STEM CELL THERAPY: 5 QUESTIONS THAT MATTER TO YOUR PRACTICE

Stem cell therapy is on the rise and is expanding at a rapid pace. If your currently doing stem cell therapy or are considering getting started, it surely is exciting and many research articles are showcasing promising results.

Unfortunately, Stem cell therapy lawsuits are also on the rise and are getting out of control. Many insurance carriers are opting out of covering this service entirely, while the rules continue to get propagated and the standards become more well defined.

Is your practice truly protected for conducting stem cell procedures? Let one of our highly-qualified agents assess your current policy. If you’re just starting and need to add this service to your coverage, schedule a consult or reach out to us!

Our WMPG research team has communicated with insurance carriers, providers and patients and compiled 5 Stem Cell Therapy Questions that matter to your practice and the most frequent responses received. See what we have learned below:

1: WHO WILL BE PERFORMING THE STEM CELL INJECTION?

It is recommended that a doctor performs the injections
Recommended board certification in physical medicine, pain management, orthopedics, interventional radiology, family practice with sports medicine fellowship, or an accepted & accredited training program specializing in stem cell therapy or interventional orthobiologics

2: WHAT TYPE OF STEM CELLS DOES YOUR CLINIC UTILIZE?

Clinics utilizing bone marrow stem cells are more accepted
Clinics offering platelet-rich plasma (PRP) are accepted in conjunction
Clinics ethically interchanging PRP and stem cells are accepted
Unreliable suppliers became a big problem early on. Using FDA Approved Stem Cell methods are important.

3: WHERE ARE YOU INJECTING THE STEM CELLS?

Local site injection vs. Intravenous and what’s more appropriate, by case
X-ray guidance expertise for treatment navigation
Stem Cells being delivered via IV is NOT being accepted

4: WHEN IS SOMEONE A CANDIDATE FOR STEM CELL THERAPY?

Utilize published research and good documentation for indications based on vendor and stem cell product selection
Provide a list of conditions your practice and will not treat

5: HOW ARE STEM CELL PROCEDURES PERFORMED?

Utilize ultrasound and or fluoroscopy to inject stem cells
Drain effusion with ultrasound imaging

The world of stem cell therapy is revolutionary. With great risk comes great reward, but please mitigate the risk!

STEM CELL THERAPY PRACTICE CHECKLIST:

Provider Qualification: Certified Training and or board certification
Product Qualification: You are responsible for the stem cell products provided to the patients.
Research Publications: The research published for stem cells is not created equally. We highly recommend for you to consider the research compiled for the products and methods you are strictly practicing.
Consents and Disclosure: This is a must! Disclosure with new therapies is everything!

Make sure you have done your due diligence and are fully compliant! If you have any questions, don’t hesitate to call, schedule a consult or email us!

(855) 851-2968

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