LAMMICO Returns Dividend of $20.5 Million of Medical Malpractice Premiums to Health Care Providers
So much for the medical malpractice crisis in Louisiana. Louisiana doctors will receive a 10% dividend this year from Louisiana's largest medical malpractice insurer bringing the total amount of insurance premiums returned by the malpractice insurer to health care providers since 2008 to $20,500,000.
Thomas H. Grimstad, M.D., President / Chief Executive Officer of the Louisiana Medical Mutual Insurance Company (LAMMICO) announced on December 16, 2009 that the LAMMICO Board of Directors and the Louisiana Department of Insurance authorized a third consecutive dividend. The press release issued by LAMMICO states that: "A 10 percent dividend will be paid to individuals, groups and health care facilities holding a LAMMICO policy in force on December 9, 2009 (with the exception of medical student and tail policies). ...This dividend equals approximately $5.1 million. Dividend checks will be distributed during the first quarter of 2010. This development follows two previous dividends declared since 2008, totaling $20.5-million." The Advocate reports that Dr. Grimstad said in a prepared statement: "We declare this third dividend with confidence while maintaining a surplus level that ensures the reliable payment of claims over any cycle." Victims of medical malpractice in Louisiana should be pleased to know that Louisiana's largest medical malpractice insurer has sufficient money in its accounts to pay any and all medical malpractice claims that arise during any time period.
