TMLT to Reduce Rates 5%

Texas Medical Liability Trust announced that effective Jan. 1, 2006, it will reduce medical liability rates for new policyholders by 5 percent across the board. Current TMLT policyholders will receive this rate decrease when their policy renews.

TMLT has reduced rates 3 times since the passage of House Bill 4 and Proposition 12 – 12 percent in 2004, 5 percent in 2005, and another 5 percent in 2006.

Speaking to the physicians at the Texas Medical Association Fall Summit, TMLT Governing Board Chairman Dr. Dennis Factor said “Access to healthcare and the malpractice environment in Texas has made a healthy recovery since the Texas Legislature passed medical liability reform. Claims are down and TMLT will enter 2006 in strong financial position. Since TMLT is physician-owned and not-for-profit, our success is your success. We are passing this on in the form of rate reductions and dividends.”

TMLT’s Board of Governors also voted to pay TMLT policyholders dividends based on projected 2005 Trust earnings and a strong capital position, beginning Jan. 1, 2006.

The dividend declared for 2005 is $10 million. For each policyholder, the dividend amount will equal approximately 5 percent of their expiring 2005 premium. Dividends will be credited to each policyholder’s premium as a lump sum when their policy renews in 2006.

The Board of Governors will determine if future dividends will be declared, as financial results permit. Dividends will apply beginning with January renewals.

TMLT is the state’s largest medical liability insurance provider, serving over 50 percent of TMA-member physicians – or nearly 13,000 Texas doctors.

Topics Texas Pricing Trends