The Doctors Company, a physician-owned medical malpractice carrier, will file with the Texas Department of Insurance to decrease its average rate level.
Ninety percent of the company’s current Texas insureds will receive rate reductions. Although some reductions will range up to 30 percent, the average decrease for insureds at $200,000/$600,000 limits of liability is 14 percent.
The Doctors Company plans to make this rate reduction effective for new applicants on April 1, 2005 and for renewing policyholders on June 1, 2005.
In 2004, The Doctors Company commended the efforts of the legislature and the citizens of Texas for taking dramatic steps to place a cap on non-economic damages along with other reforms in an effort to end the medical malpractice crisis in the state.
Richard Anderson, chairman and CEO of The Doctors Company, attributed the rate decrease to Texas House Bill 4 and Proposition
12, which reformed medical malpractice liability in Texas and placed caps on non-economic damages.
“When the 2003 reforms passed, we were confident that the legislation would dramatically improve the Texas medical malpractice marketplace, benefiting physicians as well as providing additional protection for those injured by medical negligence. As a result, we withdrew a proposed rate increase and held rates flat,” Dr. Anderson said. “And as promised, we have assessed the reformed Texas market and are extremely pleased to announce a significant reduction in our Texas rates. We congratulate Texans on their resolve to keep their doctors practicing, and we are optimistic that these reforms will exert a beneficial effect on Texas rates for years to come.”