Maryland poised for premium relief.(News)

For the past few months, Maryland physicians have been waiting for premium relief that was promised by the state's politicians.

That relief may now be on the way after the state legislature passed an emergency bill to put into effect a rate stabilization fund for medical liability insurance premiums. The proceeds of an HMO tax will be used for the fund.

Maryland physicians have been waiting to see an impact on their premiums since January when the legislature passed a bill authorizing the fund and overrode a veto by Gov. Robert L. Ehrlich Jr. (R) to put it into law. However, the state's insurance commissioner and some of the state's insurers said the law could not be implemented as written and the legislature went back to the drawing board to pass technical corrections.

Gov. Ehrlich opted to let the corrective legislation become law without his signature and now physicians are waiting to see how the fund will affect their bottom line.

Medical Mutual Liability Insurance Society of Maryland--the state's largest liability insurance carrier--announced last month that it would participate in the voluntary rate stabilization fund.

Medical Mutual sent out letters to physicians in early April asking them if they want to participate in the program and giving them 15 days to opt out.

The Doctors Company, another insurer of Maryland physicians, said it also plans to participate in the rate stabilization fund but was waiting for regulations from the insurance commissioner to determine how it will provide the subsidy to its doctors.