September 11, 2006
TMLT declares 20% dividend and 7.5% rate reduction for 2007
Laura Brockway, communications and advertising manager
(512) 425-5936 or email@example.com
The Board of Governors of Texas Medical Liability Trust (TMLT) has declared a 20% dividend amounting to approximately $35 million for 2006 effective January 1, 2007 for renewing TMLT policyholders. Dividends will be credited to each policyholder's premium as a lump sum when his or her policy renews in 2007.
In addition, the Trust will be reducing rates 7.5% for all specialties across the state beginning January 1, 2007. Current TMLT policyholders will receive this rate decrease when their policy renews.
TMLT has now reduced annual rates four times since the passage of House Bill 4 and Proposition 12 — 12% in 2004; 5% in 2005; 5% in 2006; and now 7.5% in 2007, a total of 29.5% in four years. By the end of 2007, TMLT's rate reductions since 2004 will amount to nearly $139 million, and returned dividends of 25% will amount to nearly $45 million. Since the passage of Prop 12 and medical liability reform of 2003, TMLT policyholders will have realized cumulative savings of more than $180 million.
Non-meritorious claims intake is down as a result of the medical liability reform achievements in 2003. TMLT believes the legal environment will continue to improve as long as 2003 tort reform measures remain in effect.
Because of TMLT's recent earnings and strong surplus position, physician policyholders can share in the organization's success in the form of rate reductions and dividends.
TMLT is the state's largest medical liability insurance provider, serving approximately 50 percent of active practice Texas Medical Association (TMA) member physicians — or nearly 13,800 Texas doctors. A physician must be a member of the TMA to apply for coverage with TMLT.
The Trust is not-for-profit and is physician-owned. TMLT is endorsed by the Texas Medical Association as well as a number of county and specialty medical societies. TMLT is headquartered in Austin, Texas.