Rate Cuts By Texas Medical Professional Liability Carriers

After 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 reduced its premiums for physicians. This is a timeline of the initial, post-reform rate cuts by Texas medical professional liability carriers.

Jan. 1, 2004 
Texas Medical Liability Trust (TMLT) implements a 12-percent rate cut; the first major carrier to implement a rate cut following the passage of Proposition 12.

Sept. 20, 2004
TMLT  announces a 5-percent rate cut, its second rate reduction since the passage of Proposition 12.

Feb. 17, 2005 
 The Doctors Company announces rate cuts ranging from 9 to 14 percent.

Feb. 17, 2005 
American Physicians Insurance Company (APIE) announces 5-percent rate cut for two-thirds of its insured Texas physicians.

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.

April 7, 2005
Medical Protective announces a 2-percent rate cut -its first cut since the passage of Proposition 12. 

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.

Sept. 17, 2005
TMLT declares third 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.

Sept. 23, 2005
Medical Protective announces 5-percent rate cut, its second announced cut within a six-month span.  

January 2006
American Physicians Insurance announces an 18-percent rate reduction.

Feb. 17, 2006 
Medical Protective announces a 13-percent rate cut, its third announced rate cut within the span of 11 months.

March 23, 2006  
The Doctors Company announces an 18-percent rate reduction, its second cut since the passage of Proposition 12.

May 2, 2006
Advocate MD files for a 19.9-percent rate decrease, its second rate cut since beginning operation in June 2004.

Sept. 12, 2006 
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.

Sept. 13, 2006 
Medical Protective announces a 10-percent rate cut, its fourth rate reduction since April 2005.  

Oct. 1, 2006 
The JUA announces a 5-percent rate cut; itssecond rate cut in 13 months.

January 2007 
American Physician Insurance announces a 14-percent  rate reduction.

March 1, 2007  
The Doctors Company announces a 7.5-percent renewal dividend effective July 1.

Sept. 5, 2007
TMLT announces a 6.5-percent rate cut and 22-percent dividend; its fifth rate reduction and third dividend since the passage of Prop. 12. Collectively, this represents a $45 million savings for TMLT insureds.

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.

Oct. 1, 2007  
The JUA announces a 2.6-percent rate cut; its third rate cut in three years.

January 2008  
American Physicians Insurance announces a 7-percent rate cut; its fifth 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.

Sept. 3, 2008
TMLT announces 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.

Oct. 14, 2008 
Medical Protective announces a 6.2-percent rate cut; its sixth rate reduction in the past four years.

Jan. 1, 2009 
American Physicians Insurance announces a 4-percent rate cut, its sixth rate reduction since the passage of Prop. 12. 

May 15, 2009
Medicus Insurance announces an 11-percent rate cut; its first rate reduction since entering the Texas market three years earlier.

Aug. 25, 2009
TMLT announces a 1-percent rate cut and 24-percent dividend; its seventh consecutive annual rate reduction and fifth successive dividend since the passage of Prop. 12. Collectively, this represents a $37.5 million savings for TMLT insureds.

Jan. 1, 2010 
Medical Protective announces a 3-percent rate cut, its sixth rate reduction since the passage of Prop. 12.

Jan. 1. 2011 
TMLT announces a 1-percent rate cut and 24-percent dividend; itseighth consecutive annual rate reduction and sixth successive dividend since the passage of Prop. 12. Collectively, this represents a $37.5 million savings for TMLT insureds. 

June 17, 2011  
Medicus Insurance announces a 9.5-percent rate cut; its second rate reduction since entering the Texas market five years earlier.

Source: Texas Alliance for Patient Access (TAPA)