In the past, the requirements to obtain a free “tail” were consistent among carriers and had been unchanged for many years. Those conditions were:
- Coverage with the same carrier for 5 consecutive years
- Be 55 years of age or older
- Completely retire from the practice of medicine
In 2024, many carriers have made it easier for physicians to qualify for a free “tail” policy at retirement.
Some carriers are only requiring three years of consecutive coverage and at least one carrier is only requiring one year of coverage if the physician meets the other requirements. Also, some carriers are providing free “tail” even if the physician moonlights or works as a medical director for another practice.
These changes are critical and should be discussed in detail with any physician that is close to retirement. We recommend coming up with a 5-year plan for our clients as they approach retirement. Although 5 years may not be required anymore, the need to purchase “tail” coverage at retirement is usually avoidable with the proper planning.
