May 1997
Volume 61 |
Number 5
|
| |
RESIDENTS' REVIEW
|
| Beyond Residency:
Preparing for Practice |
Antonio T. Hernandez-Conte, M.D.
As the end of the academic year rapidly approaches, many residents
are in the midst of one of the more stressful periods in their
professional careers. In addition to preparing for the American
Board of Anesthesiology's written examination, most third-year
residents are in the process of evaluating potential employment
opportunities.
In order to safeguard your educational investment, every resident
must be prepared to evaluate not only the economic remuneration
package offered by potential employers but also the benefits.
Typical benefit packages include vacation time, health insurance,
professional liability insurance and continuing medical education
time with or without compensation. However, anesthesiology residents
finishing their training tend to overlook two very important safeguards
that will serve to protect their own and possibly their families'
financial future.
Disability insurance and life insurance are two measures that
will serve to protect your financial future. Most of the university
training programs already provide life and disability insurance
to their residents and, since most residents already have a policy
in place, it may be relatively easy to continue coverage after
finishing residency training. Because residency programs contract
for a large number of policies, the actual terms of the policies
may be more comprehensive than ones obtained after training has
ended. Cost is also an issue, and residents may qualify for group
discount rates if a relatively large group negotiates coverage
prior to graduation.
Life insurance policies are fairly uniform across the country
and are not usually dependent on where you practice. Life insurance
policies are either classified as "term" or "whole."
Prices tend to vary depending upon the type that is chosen, the
latter being more costly. The policy pays a one-time sum to your
chosen beneficiary should you die.
Disability insurance is not as straightforward and is a completely
different entity from life insurance. First and foremost, disability
insurance should be carried by anyone dependent upon their salary
for economic survival. Disability insurance is necessary because
it provides you with an income (usually 60-70 percent of your
gross income) should you become unable to practice. Your premiums
must be paid with after-tax dollars so that your distribution
(should you collect them) will remain tax exempt.
Many residents often ask, "Why is it important to secure
disability insurance prior to finishing residency?" Anesthesiology
and orthopedic surgery are two of the specialties that have received
widespread attention over the past two years for an excessively
high number of claims submitted to insurance carriers. Therefore,
disability insurance policies may vary from state to state depending
upon the utilization rate by policy holders in that region. States
with higher-than-average filed claims (e.g., California, Florida)
may have narrowed the terms of the policy to make it more difficult
to implement and/or abuse. The cost or premium paid for the policy
also may be increased. Residents securing disability policies
may be able to lock in lower rates. In addition, as anesthesiologists
tend to become more mobile in their professional careers, it is
important to secure a basic individual policy that will be portable
should you change employers.
All disability policies are not created equal. Phrases such as
"guaranteed physical insurability" and "specialty-specific
policy" are just two of the catchwords that may differentiate
an above-average policy from a less-than-desirable one.
As the medical marketplace becomes progressively more competitive
and uncertain, anesthesiologists may change employers more frequently
than previously necessary. Certain employers or anesthesiology
practice arrangements may not provide adequate financial protection.
With life and disability insurance policies secured prior to graduation,
each resident will be able to approach his or her professional
career beyond residency with a little less uncertainty and anxiety.
Antonio T. Hernandez-Conte, M.D., is an
attending anesthesiologist at Gulfstream Anesthesia Services,
Ft. Lauderdale, Florida.
return to top
|