Health Coalition on Liability and Access

Mississippi Business Journal

RIDGELAND — Medical Assurance Company of Mississippi (MACM) is reducing its medical liability insurance rates across the board by 10% for 2007. The board of directors approved this action September 6, 2006.

"We are very pleased to announce a rate reduction for our insureds for the second straight year," said Michael D. Houpt, president and CEO of MACM. "The favorable trends relative to losses and loss adjustment expenses that were evident in 2005 have continued through 2006; therefore our board felt comfortable in making this decision."

MACM said numerous claims that were filed in late 2002 to avoid provisions in the tort reform packages passed by the Mississippi Legislature have been favorably resolved during this year.

"We are finally disposing of large numbers of non-meritorious claims with little or no expense," Houpt said. “Combined with the other positive effects of tort and judicial reform, our financial results to date indicate that another rate reduction is justified, and I trust that our insureds will be pleased."

In September 2005, the MACM board reduced renewal rates for 2006 by 5%, and in December 2005 granted a retroactive refund of up to 15% on 2005 premiums.

Gov. Haley Barbour said, “(This) is another concrete example of how tort reform is working to protect the quality and availability of healthcare by ending lawsuit abuse and leading to reduced medical liability rates in Mississippi. This is great news."

Commissioner of Insurance George Dale said, "Mississippi continues to show insurance companies that recent reforms are working and do aid in providing and maintaining a fair and equitable marketplace. I commend MACM for establishing a financial position that allows for this second consecutive rate reduction. Reforms were needed and now benefits such as this reduction are the result."