Company History

MMIC began in 1980 as a result of the medical professional liability insurance (MPLI) crisis of the mid-1970s. At that time, MPLI was only available through commercial insurers. With rising premiums and shrinking availability, a concerned group of Minnesota physicians and the Minnesota Medical Association (MMA) joined together to work with American Health Systems of California to establish and fund a Minnesota-based medical MPLI company – Minnesota Medical Insurance Exchange, now known as MMIC.

MMIC Timeline

  • 1980 - The MMA and a group of physicians who are concerned about rising MPLI premiums and the availability of insurance for physicians begin to work with American Health Systems of California to form Minnesota Medical Insurance Exchange (MMIE). MMIE is set up as a reciprocal under Chapter 71A of the Minnesota Statutes.

    MMIE begins with 1,300 insured physicians and has written premium of $1.2 million by December 31, 1980. Seven American Health System contract employees handle the insurance business. Robert S. Flom, M.D., becomes the first board chair. Frank Johnson, M.D., is named chair of the board of governors of the exchange and Douglas Beach is appointed general manager.

  • 1981 - By year-end, MMIE has 1,800 individual policyholders and 244 corporate policies for total written premium of $6.8 million. MMIE is admitted in North Dakota and gains the endorsement of the North Dakota Medical Association.

  • 1983 - MMIE ends its arrangement with American Health Systems and begins a contract agreement with North Star Casualty Services for the administration of the company. North Star keeps the American Health Systems employees and adds 60 employees to manage both MMIE and North Star Casualty and its hospitals program.

  • 1986 - MMIE ends its agreement with North Star. The 32 North Star employees handling the physician business join MMIE in March, becoming MMIE's first employees. MMIE is admitted in Minnesota, North Dakota and South Dakota, and has more than 2,852 policyholders and written premium of $24 million and total assets of $81.7 million. MMIE has its first major legislative involvement through the MMA. The two groups work successfully to help pass major tort reform legislation designed to avoid an impending liability crisis in Minnesota.

  • 1988 - MMIE is restructured into a stock company to gain more flexibility to enter new markets such as hospital professional and general liability. MMIE becomes Midwest Medical Insurance Company(MMIC) and Midwest Medical Insurance Holding Company (MMIHC).

    MMIC approves a retroactive premium refund (12 percent) to be returned in 1989 to policyholders meeting specific criteria in 1988.

    MMIC received its first A.M. Best rating, B+. The company is becoming a well-known and respected member of the MPLI community.

  • 1989 - Robert S. Flom, M.D., retires as chair of the board and George V. Tangen, M.D., is elected to succeed him in June. MMIC returns a 12.5 percent retroactive premium refund to policyholders meeting specific criteria in December 1989.
  • 1990 - David P. Bounk succeeds Douglas Beach as MMIHC President and CEO in August. MMIC celebrates its 10th anniversary. The company stops collecting new surplus contributions and returns 1/6th of the originally collected surplus. MMIC has $116,195,000 in assets, $33,837,690 in shareholder's equity and $28,958,620 in premiums. The number of policyholders is 3,588. The company's first decade is one of growth far beyond the original founders' expectations.

  • 1992 - MMIC receives its first "A" rating from A.M. Best. The company completes the return of the remaining $7.83 million of the initial surplus contributions.

  • 1993 - MMIC merges with the Iowa Physicians Mutual Insurance Trust Company (IPMIT), a physician-owned MPLI company in Iowa. The merger allows MMIC full access to the Iowa physician market. IPMIT adds 1,200 physicians to the MMIC book of business, bringing the number of policyholders to 5,308. The company has 52 employees in two locations—Minneapolis and Des Moines.

  • 1995 - MMIC assets are $220,409,692; shareholder's equity is $93,320,632 and premiums are $41,443.614. MMIC begins writing hospital professional liability insurance. The company insures 5,094 doctor and clinic policyholders and two hospitals. MMIC is endorsed by three medical societies—Minnesota Medical Association, North Dakota Medical Association and the Iowa Medical Society.

  • 1996 - MMIC merges with the Medical Liability Mutual Insurance Company of Nebraska (MLM). Located in Omaha, MLM adds 418 physicians bringing the number of policyholders to 5,665 by year-end. MMIC also secures licenses in Wisconsin and Illinois, primarily to write cross-border opportunities. George V. Tangen, M.D., chair of the board, retires in June, and Andrew J.K. Smith, M.D., becomes the new board chair.

  • 1997 - To promote and support policyholders, MMIC creates Midwest Medical Solutions Inc. (now MMIC Health IT). The company offers technology products and services to physicians and groups needing help with information technology and technology-related products and services. The company purchases MedPower Information Resources Inc., an electronic healthcare claims clearinghouse servicing a network of more than 100 providers.

  • 1998 - MMIC creates three critical new positions. Jack Kleven is named chief operating officer. Elizabeth Lincoln is named vice president of Law and Health Policy to monitor the rapid changes in the healthcare legal environment, and Rosalind Miller is hired as director of communications to ensure consistent, thorough and continuous internal and external communication.

  • 1999 - MMIC acquires an employee benefits agency—MMIC Benefits— adding another dimension to the multiple service and product lines available to policyholders. MMIC Benefits, formerly Johnson McCann, is well known and has strong relationships with the healthcare community.

    Jack Kleven becomes president of insurance operations (MMIC). CEO Dave Bounk turns his attention to new products and services to assist policyholders in technology and business development. In addition, Gerald O'Connell, vice president of Sales & Marketing is placed in charge of all marketing activities for insurance, noninsurance and the benefits agency.
  • 2000 - MMIHC stock restructure results in $11 million being returned to shareholders as one Class C share is exchanged for Class A shares valued at $66 per share.

    Midwest Medical Solutions changes its name to MMIC Technology Solutions and renames its business units to take advantage of the MMIC brand.

    MMIC acquires 20 percent of Partners Healthcare Consulting, LLC, a healthcare group providing project specific services to healthcare providers, and 20 percent of Langan and Flynn, a human resources consulting group. These partnerships give MMIC policyholders access to a wide range of services.

  • 2001 - MMIC sells MedPower Information Resources to ClaimLynx, a Twin Cities-based healthcare claims clearinghouse. The agreement calls for MMIC to have a long-term relationship with ClaimLynx.

  • 2002 - G. Richard Geier, M.D., becomes chair of the MMIC board of directors replacing Andrew J.K. Smith, M.D., who retires from the MMIC board.

    Written premium reaches $90.5 million dollars. MMIC is the leader in market share in its five-core states: Minnesota, North Dakota, South Dakota, Iowa and Nebraska. The company employs more than 120 people in four locations and insures 10,965 physician, 1,075 clinic and 204 hospital policyholders.

  • 2003 - MMIC takes the lead on a variety of healthcare issues working with state medical societies, the AMA, the Physician Insurers Association of America and local and federal health care organizations. MMIC ends its relationship with MMIC Benefits Inc. at the end of its five-year contract. MMIC will receive $1.6 million in capital gains from the transaction.

  • 2004 - MMIC President and COO Jack Kleven retires after more than 22 years of service. Kleven was one of MMIC's first employees. MMIC's assets grow to $342 million.

  • 2005 - MMIC terminates its relationship with Partners Healthcare Consulting when Partners merges with another organization. MMIC celebrates its 25th anniversary. The company insures 11,893 physicians, 788 clinics and 201 hospitals in six states - Iowa, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin.

  • 2006 - Three-year strategic plan focuses on improving quality and customer service. Employee and customer satisfaction surveys validate the company's superior customer service.

  • 2007 - MMIC receives Minnesota Quality Council's "Advancement Level" Award exemplifying the company's commitment to quality. Mark D. Odland, M.D., becomes chair of the MMIC board of directors, replacing G. Richard Geier, M.D, who retires from the board in May.

  • 2008 - MMIC offers a premium credit to physicians and clinics with fully-implemented Electronic Medical Records.

    $6.5M in dividends is paid to physicians insured by MMIC during 2008. A total of $77M in dividends has been returned to physicians since 1994.

    William "Bill" McDonough succeeds David P. Bounk as MMIC president and chief executive officer in June.

  • 2009 - MMIC receives a rating of A (Excellent) from A.M. Best with a stable financial outlook.

    Senior Vice President of Law and Health Policy, Libby Lincoln and Senior Vice President and CFO Niles Coles have their roles enhanced to help meet the changes of a rapidly evolving healthcare delivery system.

    Tim Schultz promoted to Assistant Vice President of Claims and Jeff Pearson promoted to Assistant Vice President of Underwriting.

    Brenda Devlin joins MMIC as Vice President of Human Resources with more than 13 years of generalist experience.

  • 2010 - MMIC hires full-time actuary, Steve Lacke, to play a key role in our underwriting and decision-making processes.

    MMIC Technology Solutions changes their name to MMIC Health IT in conjunction with the launch of MMIC's new branding initiative.

    Jeff Pearson is promoted to Vice President of Underwriting, Jerry O'Connell promoted to Vice President of our ARTS strategic initiative and Deb Penrod is promoted to Vice President of Information Services.

    The Minneapolis Star Tribune newspaper names MMIC as one of the Top Workplaces in the Twin Cities, based on an employee-based survey project.

    MMIC announces the expansion of our services to the ever-growing population of Long Term Care Service Providers.

    Kansas and Missouri are now included in MMIC's area of service.

  • 2011 - MMIC expanded its reach beyond its six core states, and begins to write business in Kansas and Missouri.

    MMIC converts from a stock holding company structure to a mutual holding company structure. The change to a mutual insurance holding company in November 2011 allows MMIC to establish itself as a physician-governed, policyholder-owned, mission-driven organization. The change in company structure affords new opportunities to serve clients, because it will help MMIC expand its reach, increase its scale, and offer more support on a local level. It enhances the company's ability to remain a strong, independent competitor in today's market, continuing its original mission, started by the physicians who founded the company 32 years ago.

  • 2012 - MMIC names Laurie Drill-Mellum, M.D., M.P.H. as its first Chief Medical Officer. In this newly created role, Drill-Mellum will work with MMIC's Risk Management, Health IT, and Claim departments to develop integrated risk reduction and risk mitigation strategies. She will also build a network of physician consultants that will work with MMIC clients to deliver risk strategies for physicians and hospitals throughout MMIC's eight-state region.

    October - Steve Lacke is promoted to senior vice president, Insurance Operations. He assumes responsibility for the company’s underwriting and IT functions in addition to his role as actuary. Lacke joined MMIC as its vice president and chief actuary in 2009.
  • 2013 - Julie Stafford promoted to SVP of Business Development, Lacke assumes CFO duties. John Woodward takes over as VP of MMIC sales.