August 24, 2010
TMLT announces 24% dividend and 1% rate reduction effective January 2011
Laura Brockway, communications and advertising manager
(512) 425-5936 or email@example.com
AUSTIN, TEXAS . . . The Governing Board of Texas Medical Liability Trust (TMLT) has announced a 24% policyholder dividend for renewing TMLT policyholders and a 1% rate reduction for TMLT policyholders effective January 1, 2010.
This is the fifth time TMLT has declared a policyholder dividend. The 24% dividend is the largest to date and will amount to approximately $36 million dollars in 2010 premium savings for TMLT physicians.
TMLT has reduced rates for Texas physicians for seven consecutive years since the passage of House Bill 4 by the Texas legislature and Governor Rick Perry in 2003. For the first five years, rates were reduced across the board for all policyholders: 12% in 2004; 5% in 2005; 5% in 2006; 7.5% in 2007; and 6.5% in 2008. For 2009, all physicians received a rate decrease but the reduction varied by specialty and territory with an average statewide decrease of 4.7%. In 2010, all TMLT-insured physicians will receive a 1% rate reduction.
According to Bob R. Fields, TMLT's president and CEO, medical liability reform has fostered an environment in Texas where physicians can spend their time taking care of their patients rather than fighting lawsuits. Since the passage of medical liability reform, TMLT insured physicians will have saved $519.6 million, once this latest round of rate cuts and dividends is implemented.
Physicians interested in applying for TMLT coverage or who would like more information about how this rate decrease and dividend will benefit them can call the sales department at 800-580-8658. Current policyholders will receive detailed information before their policy renews or they may direct questions to their underwriter.
TMLT is the state's largest medical liability insurance provider, serving nearly 15,000 Texas Medical Association (TMA) member physicians. TMLT is a health care liability claim trust created and endorsed by TMA and owned by its physician policyholders. The Trust is headquartered in Austin, Texas.