Medical Protective to Reduce Rates, Expand Offerings

The Medical Protective Company, a member of the GE Insurance Solutions group of companies, announced plans to reduce rates and expand insurance offerings in Texas. This action reflects the company’s recent internal company data updates, which suggest that 2003 tort reform measures are beginning to take hold.

Medical Protective sees positive indications in its recent loss data. As a result, it will reduce rates in many specialties, with an overall impact expected to be a 2 percent reduction for Texas physicians. The company currently has 11,000 policyholders in the state.

Medical Protective also plans to accept new business applications in over 30 additional specialties.

Medical Protective President and Chief Executive Officer Tim Kenesey commented: “Of the several tort reform measures passed in various states over the last 24 months, we firmly believe that the Texas reforms will be the most effective—in large part due to the greater constitutional certainty provided by Prop 12. We have consistently maintained our position that such reforms would, over time, stabilize the Texas market by moderating previously out-of-control loss costs and by increasing the level of insurance capital committed to the Texas market. While still very early in what is a multi-year evaluation of the effects of tort reform, Medical Protective is optimistic that early data indicates loss trends have begun to stabilize. In view of that, we have decided to implement a responsible rate decrease and to increase offerings available to Texas healthcare providers.”

The president of the Texas Medical Association also commented on Medical Protective’s announcement. “Medical Protective’s actions are further proof that tort reform is working in Texas,” said TMA President Bohn Allen, MD. “We expect the marketplace will continue to improve for Texas physicians.”

Topics Texas Pricing Trends