Medical Protective Won’t Seek Overall Rate Increase in Texas This Year

The Medical Protective Company (Medical Protective), a large admitted primary medical professional liability insurer in Texas, announced it has no plans to take an overall rate increase in the state in 2005.

President and Chief Executive Officer Timothy Kenesey said overall rates for Texas physicians would remain at levels set last July.

“We made a commitment to our Texas policyholders, as well as legislators and regulators, that we would continue monitoring the impact of the recently enacted tort reform measures on our rate indicators,” Kenesey said. “While there are many factors that affect the number of reported claims, the recent data begins to suggest a moderating trend. We are optimistic this trend is due in part to the tort reform measures and the constitutional amendment permitting caps on non-economic damages passed in Texas over a year ago.”

Kenesey continued: “Our view, considering our nearly century-long history of service to Texas healthcare providers, has always been that it will take time after the reforms are in place to measure their full impact on our losses. While it will take approximately five years to bear out the full impact, we are encouraged by the trends we see in this ‘initial round’ of data and expect our statewide overall rates to be without an increase in 2005.”

Remarking that Medical Protective was a founding member of The Texas Alliance for Patient Access (TAPA), Kenesey noted that Medical Protective views tort reform as part of a four-prong approach to enhance patient access to reasonably priced healthcare. Meaningful liability reform combined with robust risk management and patient safety initiatives, adequate reimbursement, and a free market with all insurance carriers playing by the same rules will help ensure patients have access to the care they need, and healthcare providers will be able to meet the challenges presented in today’s dynamic environment.

“Medical Protective has and will continue to stand shoulder to shoulder with the medical community in support of effective reforms. By creating certainty with a constitutional amendment securing the cap on non-economic damages, Texas did it right and our numbers are now beginning to show it,” Kenesey said.

The Medical Protective Company, a subsidiary of GE Insurance Solutions Corporation, is a national leader in primary medical professional liability coverage and risk solutions to physicians, dentists and professional corporations.

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