Bill Text: PA HB2544 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing for medical professional liability insurance, for Medical Care Availability and Reduction of Error Fund and for actuarial data.

Spectrum: Slight Partisan Bill (Democrat 7-3)

Status: (Introduced - Dead) 2010-05-27 - Referred to INSURANCE [HB2544 Detail]

Download: Pennsylvania-2009-HB2544-Introduced.html

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PRINTER'S NO. 3823
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2544 Session of2010
INTRODUCED BY STURLA, BELFANTI, CALTAGIRONE, GIBBONS, HESS, SANTONI, SIPTROTH, SWANGER AND CREIGHTON, MAY 27, 2010
REFERRED TO COMMITTEE ON INSURANCE, MAY 27, 2010
AN ACT
Amending the act of March 20, 2002 (P.L.154, No.13), entitled
"An act reforming the law on medical professional liability;
providing for patient safety and reporting; establishing the
Patient Safety Authority and the Patient Safety Trust Fund;
abrogating regulations; providing for medical professional
liability informed consent, damages, expert qualifications,
limitations of actions and medical records; establishing the
Interbranch Commission on Venue; providing for medical
professional liability insurance; establishing the Medical
Care Availability and Reduction of Error Fund; providing for
medical professional liability claims; establishing the Joint
Underwriting Association; regulating medical professional
liability insurance; providing for medical licensure
regulation; providing for administration; imposing penalties;
and making repeals," further providing for medical
professional liability insurance, for Medical Care
Availability and Reduction of Error Fund and for actuarial
data.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 711(d), 712(c)(2) and (e)(3) and 745 of
the act of March 20, 2002 (P.L.154, No.13), known as the Medical
Care Availability and Reduction of Error (Mcare) Act, are
amended to read:
Section 711. Medical professional liability insurance.
* * *
(d) Basic coverage limits.--A health care provider shall
insure or self-insure medical professional liability in
accordance with the following:
(1) For policies issued or renewed in the calendar year
2002, the basic insurance coverage shall be:
(i) $500,000 per occurrence or claim and $1,500,000
per annual aggregate for a health care provider who
conducts more than 50% of its health care business or
practice within this Commonwealth and that is not a
hospital.
(ii) $500,000 per occurrence or claim and $1,500,000
per annual aggregate for a health care provider who
conducts 50% or less of its health care business or
practice within this Commonwealth.
(iii) $500,000 per occurrence or claim and
$2,500,000 per annual aggregate for a hospital.
(2) For policies issued or renewed in the calendar years
2003, 2004 and 2005, and each year thereafter, the basic
insurance coverage shall be:
(i) $500,000 per occurrence or claim and $1,500,000
per annual aggregate for a participating health care
provider that is not a hospital.
(ii) $1,000,000 per occurrence or claim and
$3,000,000 per annual aggregate for a nonparticipating
health care provider.
(iii) $500,000 per occurrence or claim and
$2,500,000 per annual aggregate for a hospital.
[(3) Unless the commissioner finds pursuant to section
745(a) that additional basic insurance coverage capacity is
not available, for policies issued or renewed in calendar
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year 2006 and each year thereafter subject to paragraph (4),
the basic insurance coverage shall be:
(i) $750,000 per occurrence or claim and $2,250,000
per annual aggregate for a participating health care
provider that is not a hospital.
(ii) $1,000,000 per occurrence or claim and
$3,000,000 per annual aggregate for a nonparticipating
health care provider.
(iii) $750,000 per occurrence or claim and
$3,750,000 per annual aggregate for a hospital.
If the commissioner finds pursuant to section 745(a) that
additional basic insurance coverage capacity is not
available, the basic insurance coverage requirements shall
remain at the level required by paragraph (2); and the
commissioner shall conduct a study every two years until the
commissioner finds that additional basic insurance coverage
capacity is available, at which time the commissioner shall
increase the required basic insurance coverage in accordance
with this paragraph.
(4) Unless the commissioner finds pursuant to section
745(b) that additional basic insurance coverage capacity is
not available, for policies issued or renewed three years
after the increase in coverage limits required by paragraph
(3) and for each year thereafter, the basic insurance
coverage shall be:
(i) $1,000,000 per occurrence or claim and
$3,000,000 per annual aggregate for a participating
health care provider that is not a hospital.
(ii) $1,000,000 per occurrence or claim and
$3,000,000 per annual aggregate for a nonparticipating
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health care provider.
(iii) $1,000,000 per occurrence or claim and
$4,500,000 per annual aggregate for a hospital.
If the commissioner finds pursuant to section 745(b) that
additional basic insurance coverage capacity is not
available, the basic insurance coverage requirements shall
remain at the level required by paragraph (3); and the
commissioner shall conduct a study every two years until the
commissioner finds that additional basic insurance coverage
capacity is available, at which time the commissioner shall
increase the required basic insurance coverage in accordance
with this paragraph.]
* * *
Section 712. Medical Care Availability and Reduction of Error
Fund.
* * *
(c) Fund liability limits.--
* * *
(2) The limit of liability of the fund for each
participating health care provider shall be [as follows:
(i) For calendar year 2003 and each year thereafter,
the limit of liability of the fund shall be] $500,000 for
each occurrence and $1,500,000 per annual aggregate.
[(ii) If the basic insurance coverage requirement is
increased in accordance with section 711(d)(3) and,
notwithstanding subparagraph (i), for each calendar year
following the increase in the basic insurance coverage
requirement, the limit of liability of the fund shall be
$250,000 for each occurrence and $750,000 per annual
aggregate.
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(iii) If the basic insurance coverage requirement is
increased in accordance with section 711(d)(4) and,
notwithstanding subparagraphs (i) and (ii), for each
calendar year following the increase in the basic
insurance coverage requirement, the limit of liability of
the fund shall be zero.]
* * *
(e) Discount on surcharges and assessments.--
* * *
[(3) For calendar years 2005 and thereafter, if the
basic insurance coverage requirement is increased in
accordance with section 711(d)(3) or (4), the department may
discount the aggregate assessment imposed under subsection
(d) by an amount not to exceed the aggregate sum to be
deposited in the fund in accordance with subsection (m).]
* * *
[Section 745. Actuarial data.
(a) Initial study.--The following shall apply:
(1) No later than April 1, 2005, each insurer providing
medical professional liability insurance in this Commonwealth
shall file loss data as required by the commissioner. For
failure to comply, the commissioner shall impose an
administrative penalty of $1,000 for every day that this data
is not provided in accordance with this paragraph.
(2) By July 1, 2005, the commissioner shall conduct a
study regarding the availability of additional basic
insurance coverage capacity. The study shall include an
estimate of the total change in medical professional
liability insurance loss-cost resulting from implementation
of this act prepared by an independent actuary. The fee for
20100HB2544PN3823 - 5 -
the independent actuary shall be borne by the fund. In
developing the estimate, the independent actuary shall
consider all of the following:
(i) The most recent accident year and ratemaking
data available.
(ii) Any other relevant factors within or outside
this Commonwealth in accordance with sound actuarial
principles.
(b) Additional study.--The following shall apply:
(1) Three years following the increase of the basic
insurance coverage requirement in accordance with section
711(d)(3), each insurer providing medical professional
liability insurance in this Commonwealth shall file loss data
with the commissioner upon request. For failure to comply,
the commissioner shall impose an administrative penalty of
$1,000 for every day that this data is not provided in
accordance with this paragraph.
(2) Three months following the request made under
paragraph (1), the commissioner shall conduct a study
regarding the availability of additional basic insurance
coverage capacity. The study shall include an estimate of the
total change in medical professional liability insurance
loss-cost resulting from implementation of this act prepared
by an independent actuary. The fee for the independent
actuary shall be borne by the fund. In developing the
estimate, the independent actuary shall consider all of the
following:
(i) The most recent accident year and ratemaking
data available.
(ii) Any other relevant factors within or outside
20100HB2544PN3823 - 6 -
this Commonwealth in accordance with sound actuarial
principles.]
Section 2. This act shall take effect in 60 days.
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