TRENTON, N.J., April 24 – Medical malpractice insurance premiums in New Jersey have started to stabilize, according to an Insurance Department report to the Legislature.

The report was given to the Senate Budget Committee, which had requested the information.

The department reported that the weighted average increase in malpractice insurance premiums in the state increased by 13.12 percent in 2005, by 5.89 percent in 2006, and now is up by 0.28 percent.

It appears that prices in 2007 may likely remain relatively stabile, but the cost of coverage for neurosurgeons and obstetricians, however, continued to increase in 2006 faster than the average, the report read.

Latest statistics showed that premiums for neurosurgeons last year were about $130,000 and $116,000 for obstetricians.

Subsidy payments last year went to 74 neurosurgeons who each received $17,000 and to 735 obstetricians who each got $16,000.

The legislators also wanted to know whether the subsidy law has helped keep key medical specialists in the state.

The department reported that the number of practicing neurosurgeons has declined slightly from 64 to 60 over the two-year period of 2004 and 2005, and 740 to 683 for obstetricians.

These two specialties are in line to receive another subsidy payment later this year. The current subsidy law ends in July this year.

The department reported that 1,202 obstetricians, neurosurgeons and diagnostic radiologists received reimbursement subsidies in 2004 and to 1,282 physicians in 2005.

The report, however, dodged the question of whether the subsidy program is keeping those high-risk specialists practicing in the state. The department report noted, Establishing a cause and effect relationship to the subsidies is problematic because of the number of factors involved in individuals decisions to cease practicing their specialty.

The department also offered no opinion on whether the subsidy program should continue. Such determination exceeds the jurisdiction of the department, the report stated.

The existing subsidy program expires this July. In all, the subsidies will reach $51 million. The fund gets its money from a special $75 per-head tax on lawyers, physicians, podiatrists, dentists, chiropractors, and attorneys, and a $3 per-head tax on employees who are in the unemployment insurance program of the state.