Rates to remain level
Speaking on behalf of the Medical Mutual Board, President and CEO Frank Lavoie, MD, MBA recently announced that the Company will seek no rate action in any state or for any line of business for the coming policy year. Lavoie said the Company's consulting actuary, Milliman, recently completed an annual review to assist in rate level monitoring and insurance cycle management, which the Board used to make its final determination for rates to remain unchanged.
While claims severity has increased along with national trends over the past several years, Lavoie cited a significant decrease in claims counts for 2021— down 24 percent compared to 2020 and 33 percent compared to 2019— as the principle underlying factor for the Board's rate decision.
With the exception of 10 percent increases in New Hampshire and Vermont hospital rates in 2020 and 2021, Lavoie said the decision continues a trend of remarkably stable rates since 2014.