My Account

username

password

Forgot your password?

Dividend Information

Chronology of Events

  • 2000-2004. Cost of malpractice insurance rises dramatically across the country due to significant increases in shock verdict claims payouts.

  • 2002-2004. Malpractice insurance costs rise in Maryland as shock verdicts hit and claims payouts climb.

  • 2004-2005. Maryland doctors, under extreme financial pressure from declining reimbursements and increases in malpractice insurance premiums, request help from the State.

  • 2005. In response, the Maryland General Assembly passes legislation providing financial relief in the form of a premium subsidy to Maryland physicians, spread over four years, to mitigate the increase in the cost of malpractice insurance.

  • June, 2005. The industry rating agency A.M. Best downgrades its outlook statement for MEDICAL MUTUAL from “stable” to “negative.”

  • 2005-present. The subsidy program succeeds in stabilizing premiums and relieving some of the financial pressures caused by higher premiums.

  • 2006-present. Average claims payouts remain high but MEDICAL MUTUAL experiences a reduction in the frequency of claims filed against our doctors.

  • 2007. The improved claims situation helps MEDICAL MUTUAL restore and stabilize its financial condition.

  • June, 2007. A.M. Best maintains the company’s “A-minus” (Excellent) rating and revises its outlook statement for the company from “negative” back to “stable.”

  • September 12, 2007. With the claims situation improving, MEDICAL MUTUAL announces a $68.6 million dividend in order to keep the price a doctor pays for malpractice insurance from increasing.

  • September 12, 2007. MEDICAL MUTUAL presents its dividend proposal to the Maryland Insurance Administration that same day.

  • September 13, 2007. Maryland Insurance Commissioner Ralph S. Tyler announces he will hold a hearing in October to determine issues relating to MEDICAL MUTUAL’s dividend proposal.

  • October 5, 2007. The Insurance Commissioner holds a hearing to discuss the MEDICAL MUTUAL dividend proposal.

  • November 20, 2007. Insurance Commissioner Ralph S. Tyler issues a ruling in conflict with the action taken by the MEDICAL MUTUAL Board. His ruling requires payment of the entire $68.6 million to the state. However, he also called for additional dialogue to explore other options to mitigate prices next year.

  • November 21-December 13, 2007. The Insurance Commissioner and MEDICAL MUTUAL continue intensive negotiations to review alternate solutions.

  • December 13, 2007. Governor O’Malley and Insurance Commissioner Tyler hold a news conference in Annapolis to announce an agreement with MEDICAL MUTUAL that will keep the price doctors pay for their 2008 malpractice insurance renewal policy essentially the same as what they paid in 2007.

  • The agreement calls for MEDICAL MUTUAL to give the state $84,075,699 as a full reimbursement of the doctor subsidy received since 2005.

  • In lieu of the state subsidy, MEDICAL MUTUAL will provide policyholders with an 8% reduction in their renewal premium charge and a 12% dividend credit on their 2008 renewal policy. The combination will keep their 2008 price essentially the same as in 2007.

  • MEDICAL MUTUAL will no longer be participating in the state subsidy program.

  • Week of December 17, 2007. MEDICAL MUTUAL to mail invoices to policyholders for their 2008 renewal policies.