Three years ago, Texas lawmakers passed a bill that drastically limited the amount of money patients could receive as a result of a malpractice suit. Malpractice insurers rushed to announce that they would cut insurance premiums by as much as 20 percent, and the reform has gone a long way to keeping doctors, particularly OB/GYNs, neurosurgeons and orthopedic surgeons in the state. But what the insurers haven't mentioned is that the reform quite an impact on their bottom line as well. Texas Medical Liability Trust, the state's largest malpractice insurer, has experienced an 800 percent surplus increase in just five years. They're not alone. Other large insurers have also seen similar results. The insurers point out that they have passed along the savings to physicians, but perhaps their high surpluses proved that there's room for even more rate cuts. I'd also be interested in hearing how malpractice lawyers in Texas doing under the new legislation. Email me [1] with your thoughts.
- for more, check out this Austin Business Journal report [2]
Links:
[1] mailto:Maureen@fiercemarkets.com
[2] http://www.bizjournals.com/austin/stories/2006/08/14/story6.html?b=1155528000%5e1329632