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PRINTER'S NO. 1213
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
908
Session of
2017
INTRODUCED BY FOLMER, MENSCH, MARTIN AND STEFANO,
SEPTEMBER 26, 2017
REFERRED TO BANKING AND INSURANCE, SEPTEMBER 26, 2017
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," in insurance, further providing for
medical professional liability insurance and for the Medical
Care Availability and Reduction of Error Fund; and, in
miscellaneous provisions, establishing the Health Care
Provider Rate Stabilization Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 711(d)(3) and (4) 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.
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(d) Basic coverage limits.--A health care provider shall
insure or self-insure medical professional liability in
accordance with the following:
* * *
(3) [Unless the commissioner finds pursuant to section
745(a) that additional basic insurance coverage capacity is
not available, for] For policies issued or renewed in
calendar [year 2006 and each year thereafter] years 2017,
2018, 2019 and 2020 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] For policies issued or renewed [three
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years after the increase in coverage limits required by
paragraph (3)] in year 2021 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
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 2. Section 712(d) of the act is amended by adding a
paragraph to read:
Section 712. Medical Care Availability and Reduction of Error
Fund.
* * *
(d) Assessments.--
* * *
(4) For calendar year 2021 and for each calendar year
thereafter, all assessments shall cease and the fund shall be
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funded in accordance with section 5102.1.
* * *
Section 3. The act is amended by adding a section to read:
Section 5102.1. Health Care Provider Rate Stabilization Fund.
(a) Declaration of policy.--The General Assembly finds and
declares as follows:
(1) Adequate numbers of health care providers for access
to quality health care must be available.
(2) Health care providers must be encouraged to practice
in this Commonwealth.
(3) The maintenance of a health care medical malpractice
marketplace is essential to these goals.
(4) The financial impact to health care providers as a
result of the transition to a private medical malpractice
marketplace must be mitigated.
(b) Establishment.--Beginning January 1, 2018, the Health
Care Provider Rate Stabilization Fund is established in the
State Treasury. Money in the fund shall be used for the
following purposes:
(1) Payment of any obligations as described under this
chapter.
(2) Beginning January 1, 2018, payment of claims against
any participating providers for losses or damages awarded in
medical liability actions against them in accordance with
section 712(c).
(3) Payment of premiums and assessments for insurance
coverage as required under sections 711(d) and 712(c) in
effect for calendar year 2017 and each year thereafter until
all liabilities of the fund have been eliminated, to the
degree that the premiums and assessments are greater than
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110% of the premiums and assessments in effect during the
previous calendar year. The commissioner shall determine the
amount available for this purpose.
(c) Responsibilities of commissioner.--In order to carry out
this section, the commissioner shall:
(1) Certify classes of health care providers by
specialty, subspecialty or type of health care provider
within a geographic classification, whose average medical
malpractice premium, as a class, on or after January 1, 2017,
is in excess of an amount per year as determined by the
commissioner in accordance with subsection (b)(3).
(2) Establish a methodology and procedures for
determining eligibility for and providing payments from the
fund in accordance with subsection (b)(3).
(3) Upon certification of eligibility, the commission
shall notify and send to the applicable health care
provider's insurance carrier or self-insured program the
appropriate amount from the fund, and the insurance carrier
or self-insured provider shall provide a rebate or credit
equal to the payment.
(4) Take all necessary action to recover the cost of the
subsidy provided to a health care provider that the
commissioner determines to have been incorrectly provided.
(d) Requirements of health care providers.--
(1) A health care provider that fails to comply with the
provisions of this section shall be required to repay to the
commissioner the amount of the subsidy, in whole or in part,
as determined by the commissioner.
(2) A health care provider who has been subject to a
disciplinary action or civil penalty by the practitioner's
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respective licensing board is not eligible for a subsidy from
the fund.
(e) Transfer of assets--The money in the Tobacco Settlement
Fund is transferred to the fund beginning January 1, 2018.
Section 4. This act shall take effect immediately.
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