All physicians who are insured with Louisiana Medical Mutual Insurance Company (LAMMICO) and practicing medicine in East Baton Rouge Parish will enjoy a 5 percent base rate decrease to their basic limits premium beginning with Jan. 1, 2008 renewals, the company announced.
The medical liability insurer said success in controlling risk is a factor influencing the rate reduction. LAMMICO reported a decline in frequency and severity of claims in the Baton Rouge area.
LAMMICO continually monitors claims in all 64 parishes across the state. Based upon an actuarial review of claims data statewide, a reduction in claims costs in East Baton Rouge Parish led to the announcement. The decrease will affect the more than 600 physician policyholders who practice in this parish.
The company said with the current rate reduction, it has been able to decrease rates three times since Jan. 1, 2007.
In July of this year – for the first time in company history – all physician policyholders were given an overall base rate decrease ranging from 1-to-5 percent, depending upon specialty, at renewal.
Previous to this, in late 2006, LAMMICO also gave a 10 percent base rate decrease to physicians practicing in Bossier and Caddo parishes at their Jan. 1, 2007 renewal.
All LAMMICO policyholders have enjoyed three consecutive years of 0 percent overall base rate increases, resulting in the company not filing for a rate increase since 2004.
Source: LAMMICO, www.lammico.com
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