Jun. 28, 2002

Gov. Rick Perry Announces New Insurance Options for Texas Physicians

Stopgap Measure Provides Relief For Doctors Struggling To Find Insurance, Governor Says

HARLINGEN – Gov. Rick Perry today announced that the Texas Department of Insurance (TDI) is taking action to help physicians who have been unable to find affordable medical malpractice insurance.

Perry said TDI has worked with the Texas Medical Liability Insurance Underwriting Association to expand coverage choices for physicians and reduce rates for some specialists. The non-profit association, also known as the Joint Underwriting Association, serves health-care providers who cannot find affordable malpractice insurance through the commercial market.

“This new stopgap malpractice coverage option will keep medical professionals from abandoning the practice of medicine due to loss of insurance or soaring premiums,” Perry said. “Doctors practice medicine to make a difference – not to spend their time in court. And until we convene the next legislative session and reform our malpractice laws, this new stopgap measure will provide relief for doctors trying to stay in business.”

The governor praised the Joint Underwriting Authority for taking action to help alleviate the medical malpractice crisis. The situation has been especially troublesome for doctors who practice in the Rio Grande Valley and other under-served areas of the state, with some insurance companies refusing to provide medical liability insurance in those regions.

“All over the state of Texas, and especially in the Rio Grande Valley, medical professionals are either losing their coverage entirely or experiencing rate shock,” Perry said. “Abusive trial lawyer practices are sending doctors out of the profession, jeopardizing patient care in a region that already has a shortage of qualified medical professionals.”

Earlier this year, Perry laid out a series of corrective measures to address malpractice insurance crisis, including a call for meaningful lawsuit reform that caps non-economic losses to plaintiffs at $250,000 and limits personal injury trial lawyers’ fees. At that time, the governor also called for expanding insurance coverage options available through the Joint Underwriting Association.

After working with TDI, the Joint Underwriting Association developed new types of malpractice insurance policies to provide doctors with lower-cost options for coverage. In addition, the association has adjusted the cost of its policies based on a rate analysis. This resulted in a significant rate reduction for some specialists who typically face the highest premiums. Neurosurgeons, cardiovascular and orthopedic surgeons and obstetrician/gynecologists covered by the Joint Underwriting Association will see rate reductions ranging from 12.8 to 50 percent.

The governor made the announcement during a ceremony to dedicate the Lower Rio Grande Valley Regional Academic Health Center’s new Medical Education Division in Harlingen.

“The idea of a healthier, more vibrant Rio Grande Valley is no longer just a dream, but a great possibility,” Perry said. “The opening of the Regional Academic Health Center means the citizens of the Rio Grande Valley will have access to more qualified medical professionals and the quality health care they need and deserve.”

The health center, authorized by the Texas legislature in 1999, is organized into three divisions. The University of Texas Health Science Center at San Antonio, which also oversees the education division in Harlingen, soon will break ground on a Medical Research Division in Edinburg. The public health division officially opened in May when the University of Texas-Houston School of Public Health dedicated its Brownsville campus.