Insurer to drop Texas medical liability rates again

Texas Medical Liability Trust (TMLT) recently declared a 20 percent dividend amounting to approximately $35 million for 2006 effective Jan. 1, 2007, for renewing TMLT policyholders. In addition, it plans to reduce rates 7.5 percent for all specialties across the state beginning Jan. 1, 2007. The 7.5 percent rate cut combined with the $35 million dividend amounts to an estimated $48 million reduction in liability costs.

“We believe this is the largest single year savings ever offered by a U.S. physician carrier; certainly the largest dollar reduction granted in the past twenty years,” commented Howard Marcus, M.D., chairman of the Texas Alliance For Patient Access (TAPA). “This is welcome news for Texas doctors. Falling insurance rates and growing numbers of high-risk specialists are proof positive that Texas’ landmark reforms are working.”

TMLT has now reduced annual rates four times since the passage of House Bill 4 and Proposition 12–12 percent in 2004; 5 percent in 2005; 5 percent in 2006; and now 7.5 percent in 2007, a total of 29.5 percent in four years. By the end of 2007, TMLT’s rate reductions, since 2004 will amount to nearly $139 million and returned dividends of 25 percent will amount to nearly $45 million. Since the passage of Prop 12 and medical liability reform of 2003, TMLT policyholders will have realized cumulative savings of over $180 million.

The company said non-meritorious claims intake is down as a result of the medical liability reform achievements in 2003. TMLT believes the legal environment will continue to improve as long as 2003 tort reform measures remain in effect.

TMLT serves approximately 50 percent of active practice Texas Medical Association (TMA) member physicians– or nearly 13,800 Texas doctors.

Source: TMLT, TAPA

Topics Carriers Texas