H0489B2983A05165 MSP:JSL 12/11/07 #90 A05165
AMENDMENTS TO HOUSE BILL NO. 489
Sponsor: SENATOR HUGHES
Printer's No. 2983
1 Amend Sec. 1, page 2, line 19, by striking out "712(C)" and
2 inserting
3 712(c) and (d)
4 Amend Sec. 1 (Sec. 712), page 6, by inserting between lines
5 22 and 23
6 (d) Assessments.--
7 (1) For calendar year 2003 and for each year thereafter,
8 the fund shall be funded by an assessment on each
9 participating health care provider. Assessments shall be
10 levied by the department on or after January 1 of each year.
11 The assessment shall be based on the prevailing primary
12 premium for each participating health care provider and
13 shall, in the aggregate, produce an amount sufficient to do
14 all of the following:
15 (i) Reimburse the fund for the payment of reported
16 claims which became final during the preceding claims
17 period.
18 (ii) Pay expenses of the fund incurred during the
19 preceding claims period.
20 (iii) Pay principal and interest on moneys
21 transferred into the fund in accordance with section
22 713(c).
23 (iv) Provide a reserve that shall be 10% of the sum
24 of subparagraphs (i), (ii) and (iii).
25 (2) The department shall notify all basic insurance
26 coverage insurers and self-insured participating health care
27 providers of the assessment by November 1 for the succeeding
28 calendar year. All basic insurance coverage insurers, self-
29 insured participating health care providers and Risk
30 Retention Groups hereinafter in this subparagraph designated
31 as "RRGs" shall bill, collect and remit the fund assessment
32 to the fund within 60 days of the inception or renewal date
33 of the primary professional liability policy. All basic
34 insurance coverage insurers, self-insured participating
35 health care providers and RRGs will be subject to the
36 following:
37 (i) For assessments remitted to the fund in excess
38 of 60 days after the inception or renewal date of the
39 primary policy, the basic insurance coverage insurer,
1 self-insured participating health care provider or RRG
2 shall pay the fund a penalty equal to 10% per annum of
3 each untimely assessment accruing from the 61st day after
4 the inception or renewal date of the primary policy until
5 the remittance is received by the fund.
6 (ii) In addition to the provisions of subparagraph
7 (i), if the department finds that there has been a
8 pattern or practice of not complying with this section
9 the basic insurance coverage insurer, self-insured
10 participating health care provider or RRG shall be
11 subject to the penalties and process set forth in the act
12 of July 22, 1974 (P.L.589, No.205), known as the Unfair
13 Insurance Practices Act.
14 (iii) If the basic insurance coverage insurer, self-
15 insurer or RRG receives the assessment from a health care
16 provider, professional corporation or professional
17 association with less than 30 days to make a timely
18 remittance, the basic insurance coverage insurer, self-
19 insurer or RRG remittance period will be extended by 30
20 days from the date of receipt upon providing reasonable
21 evidence to the fund regarding the date of receipt and
22 will not be subject to the penalties provided under
23 subparagraph (i).
24 (iv) If the basic insurance coverage insurer, self-
25 insurer or RRG receives an assessment after 60 days of
26 the inception or renewal date of the primary professional
27 liability policy and remits the assessment within 30 days
28 from the date of receipt, the basic insurance coverage
29 insurer, self-insurer or RRG will not be subject to the
30 penalties provided for under subparagraph (i).
31 Remittances to the fund beyond the 30-day extension shall
32 be subject to the penalties provided under subparagraph
33 (i).
34 (v) A health care provider or professional
35 corporation, professional association or partnership
36 shall be provided fund coverage from the inception or
37 renewal date of the primary professional liability policy
38 if the billed fund assessment is paid to the basic
39 insurance coverage insurer, self-insurer or RRG within 60
40 days of the inception or renewal date of the primary
41 professional liability policy. A health care provider or
42 professional corporation, professional association or
43 partnership failing to pay the billed fund assessment to
44 its basic insurance coverage insurer, self-insurer or RRG
45 within 60 days of the policy inception or renewal and
46 before receiving notice of a claim will not have fund
47 coverage for that claim. If, however, a health care
48 provider or professional corporation, professional
49 association or partnership is billed by the basic
50 insurance coverage insurer, self-insurer or RRG later
51 than 30 days after the policy inception or renewal date
52 and the health care provider or professional corporation,
53 professional association or partnership pays the basic
54 insurance coverage insurer, self-insurer or RRG within 30
55 days from the date of receipt of the bill and the basic
56 insurance coverage insurer, self-insurer or RRG carrier
57 remits the assessment to the fund within 30 days from the
58 date of receipt, then the health care provider will be
59 provided fund coverage as of the inception or renewal
HB0489A05165 - 2 -
1 date of the primary policy. Fund coverage will also be
2 provided to the health care provider or professional
3 corporation, professional association or partnership for
4 all professional liability claims made after payment of
5 the assessment.
6 (vi) Except as to provisions in conflict with this
7 paragraph, nothing in this paragraph shall affect
8 existing regulations saved under section 5107(a) and all
9 existing regulations shall remain in full force and
10 effect.
11 (3) Any appeal of the assessment shall be filed with the
12 department.
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