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Policyholders in Green Mountain State Receive Favorable Rate News
Vermont policyholders of Medical Mutual were the latest recipients
of good news on rates for the forthcoming renewal year
when they received an October 28, 2008 letter from President &
CEO, Terrance J. Sheehan, MD. Following on the heels of similar
letters to policyholders in Maine and New Hampshire,
Sheehan announced that the Company’s medical professional liability
insurance rates for physicians in Vermont would be reduced
by an overall average of 0.9 percent and rates for hospitals would
remain unchanged.
The rate action was based on the analysis and recommendation
of the Company’s independent actuarial firm, Milliman
USA, and reflects changes in both base rates and relativity factors,
which are used to quantify the relative risk inherent in various
specialties as compared to Family Practice.
Sheehan explained the net effects of the changes and noted that
mitigating factors promised to soften the blow for any specialtyspecific
increases saying, "Because of the approved changes in relativity
factors, actual premium modifications will vary by specialty,
though the vast majority will remain neutral. For those few of you
in a specialty that will see an increase, please note that this year’s
dividend declaration will help mitigate your increase as those dividend
credits will be applied toward your renewal premium."
For Vermont hospitals, Sheehan said this marked the third
consecutive year that rates have remained unchanged. The new
rates for physicians will be effective for renewal policies beginning
January 1, 2009.