Three years after the medical malpractice reform insurance debate shook Tallahassee during an unprecedented three special sessions, the aftershocks are still rumbling across the state. Though the Florida Medical Association waved the white towel in surrender in 2003 when the legislature failed to pass a hard $250,000 cap on pain and suffering damages, the state's doctors are now getting just what they hoped for. MedMal insurance rates are falling for the first time since the late 1990s, a steadily growing number of companies are entering the market and, perhaps the best news of all for insurers and doctors alike, is that the number of claims is plummeting.

A just-released study by the Office of Insurance Regulation that examined the MedMal market in 2005 showed the makings of the turnaround were taking hold last year. For example, it found insurer's expenses in Florida comparable to other large states. It also found rate increases on the average were lower in 2005 than the previous year and found more competition in the market, as shown by 15 companies controlled 80 percent of the market, up from a dozen in 2004. The four new companies to the list are American Casualty Co., Physicians Professional Liability RRG, Hudson Specialty Insurance Co., and Physicians Insurance Co.

The OIR report noted 2005 was a profitable year for the industry, with the top 15 companies showing an overall return on surplus of 13 percent, up from 9.6 percent in 2004. "That's a rate that reflects a continued return to profitability, but which does not indicate excessive profits or industry trouble," the report said.