Rate Cuts By Texas Medical Professional Liability Carriers

Since the enactment of House Bill 4 in the 2003 Texas Legislature and the voters' approval of Proposition 12, every professional liability insurance underwriter in Texas has reduced its premiums for physicians. Roughly half of the state's doctors are now paying lower liability premiums than they were in 2001. This is a timeline of rate cuts by Texas medical professional liability carriers.

June 17, 2011

Medicus Insurance announces a 9.5-percent rate cut; their second rate reduction since entering the Texas market five years ago.

Jan. 1. 2011 Texas Medical Liability Trust announces a 1-percent rate cut and 24-percent dividend; their eighth consecutive annual rate reduction and sixth successive dividend since the passage of Prop. 12. Collectively, this represents a $37.5 million savings for their insureds.
Jan. 1, 2010 Medical Protective announces a 3-percent rate cut, their sixth rate reduction since the passage of Prop. 12.
Aug. 25, 2009 Texas Medical Liability Trust announces a 1-percent rate cut and 24-percent dividend; their seventh consecutive annual rate reduction and fifth successive dividend since the passage of Prop. 12. Collectively, this represents a $37.5 million savings for their insureds.
May 15, 2009 Medicus Insurance announces an 11-percent rate cut; their first rate reduction since entering the Texas market three years ago.
Jan. 1, 2009 American Physicians Insurance announces a 4-percent rate cut, their sixth rate reduction since the passage of Prop. 12.
Oct. 14, 2008 Medical Protective announces a 6.2-percent rate cut; their sixth rate reduction in the past four years.
Sept. 3, 2008

Texas Medical Liability Trust announced a 4.7-percent rate reduction  and a 22.5-percent dividend for renewing policyholders. This is the fourth consecutive dividend and sixth consecutive rate reduction since the passage of Prop. 12.

May 1, 2008 The Doctors Company announces 7.2-percent rate cut for new insureds effective May 1 and a 7.2-percent rate cut for renewing policyholders effective August 1.
January 2008

American Physicians Insurance announces a 7-percent rate cut; their fifth rate reduction since the passage of Prop. 12.

Oct. 1, 2007

The Joint Underwriting Association (JUA) announces a 2.6-percent rate cut; their third rate cut in three years.

Sept. 18, 2007 Medical Protective announces a 7.3-percent rate cut representing a $5 million savings for their insureds. This marks the company's fifth rate reduction in Texas in the past three years.
Sept. 5, 2007

Texas Medical Liability Trust announces a 6.5-percent rate cut and 22-percent dividend; their fifth rate reduction and third dividend since the passage of Prop. 12. Collectively, this represents a $45 million savings for their insureds.

March 1, 2007

The Doctors Company announces a 7.5-percent renewal dividend effective July 1.

January 2007

American Physician Insurance announces a 14-percent  rate reduction.

Oct. 1, 2006 The Joint Underwriting Association (JUA) announces a 5-percent rate cut; their second rate cut in 13 months.
Sept. 13, 2006 Medical Protective announces a 10-percent rate cut, its fourth rate reduction since April 2005.
Sept. 12, 2006 Texas Medical Liability Trust (TMLT) declares its fourth rate cut and second dividend on the eve of the three-year anniversary of the passage of Proposition 12. The latest is a $48 million reduction; including a $35 million dividend and a 7.5-percent rate cut.
May 2, 2006 Advocate MD files for a 19.9-percent rate decrease, its second rate cut since beginning operation in June 2004.
March 23, 2006 The Doctors Company announces an 18-percent rate reduction, its second cut since the passage of Proposition 12.
Feb. 17, 2006 Medical Protective announces a 13-percent rate cut--its third announced rate cut within the span of 11 months.
January 2006

American Physicians Insurance announces an 18-percent rate reduction.

Sept. 23, 2005 Medical Protective announces 5-percent rate cut--its second announced cut within a six-month span.
Sept. 17, 2005 Texas Medical Liability Trust (TMLT) declares 3rd rate cut since the passage of Proposition 12: this, a $27.9 premium reduction -a combination of rate cuts, dividends and discounts for good claims experience. The $10 million dividend is the equivalent of a 5-percent rate cut.
Aug. 16, 2005 American Physicians Insurance Exchange (APIE) announces its second rate cut within the span of seven months -this, a 13-percent cut.
Aug. 1, 2005 Advocate MD implements a 12-percent rate cut.
Early May 2005

The American Medical Association (AMA) takes Texas off its list of states in crisis. Texas is the only state ever to be removed from this list.

April 7, 2005 Medical Protective announces a 2-percent rate cut -its first cut since the passage of Proposition 12.
March 15, 2005 The Joint Underwriting Association (JUA) announces a 10-percent rate cut.
Just 16 months earlier the JUA sought a 36-percent rate hike; a rate increase rejected by then-Insurance Commissioner Jose Montemayor. The JUA subsequently froze its rates until the announced rate cut in March.
Feb. 17, 2005 American Physicians Insurance Company (APIE) announces 5-percent rate cut for two-thirds of its insured Texas physicians.
Feb. 17, 2005 The Doctors Company announces rate cuts ranging from 9 to 14 percent.
Sept. 20, 2004 Texas Medical Liability Trust announces a 5-percent rate cut, its second rate reduction since the passage of Proposition 12.
Jan. 1, 2004 Texas Medical Liability Trust implements a 12-percent rate cut; the first major carrier to implement a rate cut following the passage of Proposition 12.

Source: Texas Alliance for Patient Access (TAPA)


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