TMLT to cut rates for doctors
Austin Business Journal
The Texas Medical Liability Trust’s governing board voted to reduce rates for Texas policyholders and pay out a dividend once policies are renewed in 2008.
TMLT is the largest writer of medical malpractice insurance in Texas.
The board approved a 6.5 percent rate reduction on all medical specialities and classes, effective Jan. 1, 2008. In addition, all current TMLT policyholders renewing their policies in 2008 will receive a dividend equal to 22 percent of their expiring premium. This dividend is worth $35 million.
TMLT has reduced rates five consecutive years since state lawmakers passed medical liability tort reform in 2003. The insurance group cut rates 12 percent in 2004; 5 percent in 2005; 5 percent in 2006; 7.5 percent in 2007 and now 6.5 percent in 2008. Other insurers have dropped premiums, too.
The net effect of TMLT’s cumulative rate reductions is a 31 percent drop from 2003 rates and some $200 million in savings on premiums.
The TMLT is based in Austin.