PRINTER'S NO. 1161
No. 1015 Session of 2005
INTRODUCED BY TANGRETTI, BELFANTI, DALEY, EACHUS, FREEMAN,
GEORGE, GOODMAN, HALUSKA, JAMES, JOSEPHS, KOTIK, LEVDANSKY,
McILHATTAN, SHANER, THOMAS, WASHINGTON, REICHLEY, SOLOBAY AND
TIGUE, MARCH 16, 2005
REFERRED TO COMMITTEE ON INSURANCE, MARCH 16, 2005
AN ACT
1 Amending the act of March 20, 2002 (P.L.154, No.13), entitled
2 "An act reforming the law on medical professional liability;
3 providing for patient safety and reporting; establishing the
4 Patient Safety Authority and the Patient Safety Trust Fund;
5 abrogating regulations; providing for medical professional
6 liability informed consent, damages, expert qualifications,
7 limitations of actions and medical records; establishing the
8 Interbranch Commission on Venue; providing for medical
9 professional liability insurance; establishing the Medical
10 Care Availability and Reduction of Error Fund; providing for
11 medical professional liability claims; establishing the Joint
12 Underwriting Association; regulating medical professional
13 liability insurance; providing for medical licensure
14 regulation; providing for administration; imposing penalties;
15 and making repeals," requiring prior approval for policy and
16 rate changes under certain circumstances.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. The act of March 20, 2002 (P.L.154, No.13), known
20 as the Medical Care Availability and Reduction of Error (Mcare)
21 Act, is amended by adding a section to read:
22 Section 747.1. Prior approval for policy and rate changes.
23 (a) General rule.--All individual and commercial rate
24 changes and policy forms for medical professional liability
1 insurance for a health care provider shall require prior
2 approval by the department. Notwithstanding any other provision
3 of law, the commissioner may, at the commissioner's discretion,
4 direct the department to hold an informational hearing on a rate
5 change, if the rate increase exceeds 10% and such a hearing is
6 requested by an insured or the representative of an insured.
7 (b) Advance publication.--Proposed rate changes for medical
8 professional liability insurance policies filed by medical
9 professional liability insurers who are among the top ten
10 insurers, as measured by direct written premium of professional
11 liability in this Commonwealth with a market share of 10% or
12 more for health care providers, shall be published in advance of
13 approval in the Pennsylvania Bulletin.
14 (c) Review criteria.--
15 (1) Prior to approving any rate change request, the
16 commissioner may review changes in a medical professional
17 liability insurer's underwriting principles, claims data,
18 including direct premiums written, direct losses paid and
19 incurred losses.
20 (2) The commissioner may not approve manuals of rates
21 that include schedule rating plans where the credits and
22 debits deviate from the base rate by more than 25%.
23 (d) Mandatory rate adjustment.--The rate for a health care
24 provider shall be reduced by a medical professional liability
25 insurer when a medical professional liability action is
26 terminated without payment of a medical professional liability
27 claim on behalf of the health care provider, if the medical
28 professional liability insurer imposed a rate increase because
29 the medical professional liability claim was made.
30 Section 2. This act shall take effect in 60 days.
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