Retirement Planning for Active Licensees: Understanding Your License Options

As retirement approaches, physicians should evaluate the licensure status that best aligns with their future, whether that involves remaining actively licensed, serving under a volunteer license, switching to active-retired status, or electing inactive status.

Even after retiring from the practice of medicine, a physician may elect to keep their medical license active. However, the question most frequently asked is whether medical malpractice insurance must be maintained to retain an active medical license after a physician ceases practicing medicine. In Pennsylvania, the Medical Care Availability and Reduction of Error (MCARE) Act requires physicians with an active license to have medical professional liability insurance unless they qualify for an exemption from participation which must be declared on the Declaration of Compliance Form. Once the form has been submitted, MCARE will review the request and notify the physician of its decision regarding the exemption. Physicians should speak with their medical professional liability insurer before deciding whether to discontinue any coverage they have in place.

For those who want to continue practicing medicine without receiving compensation, a volunteer license may be an option. A volunteer license allows physicians to practice in approved clinics or upon referral from approved organizations without renumeration. The MCARE Act does not require volunteer licensees to maintain medical professional liability insurance. However, some clinics may provide coverage or require it. One of the most important things to know before considering a volunteer license is that an active medical license is required to apply for a volunteer license.

Physicians who no longer intend to practice medicine may switch their license status to active-retired. Active-retired status limits scope of practice to providing care to the physician and the physician’s immediate family members. A parent, spouse, child or adult sibling residing in the same household would qualify as an immediate family member. An active-retired licensee is not required to maintain medical professional liability insurance under the MCARE Act.

Alternatively, a license holder may choose to place their license on inactive status or allow it to lapse. If a physician wishes to return to practice, they must complete and submit a reactivation application. As part of the reactivation process, the Board may impose additional requirements, including a physical and mental fitness assessment, if a physician has not actively practiced in Pennsylvania for more than four years.

Finally, physicians should be aware that any license issued in Pennsylvania is subject to ongoing maintenance requirements, which include biennial renewal and compliance with applicable continuing education requirements. To understand what is required to maintain each license type, please review this chart and the resources found on the PAMED website.