LAMMICO constantly strives to achieve the delicate balance between rate stability and maintaining sufficient surplus for unforeseen claims. As explained in our 2015 Year-In-Review, LAMMICO continues to see increases in the costs associated with defending our insureds. However, we have still managed to keep rates stable and continue to pay dividends in the face of increased claim frequency and expense.
Beginning with January 1, 2017 renewals, rate changes as approved by our independent actuary and the Louisiana Department of Insurance represent an overall premium increase of less than 1 percent. While certain specialty/class rates have increased, others have decreased. A 10 percent rate increase for certain advanced practice healthcare providers will bring rates in line with current claim trends.
LAMMICO Rates Are Not PCF Surcharges
Remember that while we help streamline processes by combining LAMMICO and PCF invoices, LAMMICO premium rates are separate and distinct from Louisiana Patient's Compensation Fund (PCF) surcharges. On September 9, 2016, the PCF Oversight Board determined that their overall rate would decrease by 1.2 percent. Be aware, however, that decreased rates may not apply to all classes or provider types.
Looking Ahead to 2017
LAMMICO remains committed to maintaining affordable rates for healthcare professionals and facilities. Delivering unparalleled customer service, superior risk management education and aggressive legal defense will continue to be our objective in the coming year. I wish each of you a happy holiday season, and look forward to serving you throughout 2017.