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        PRIOR PRINTER'S NO. 1488                      PRINTER'S NO. 1491

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1137 Session of 2007


        INTRODUCED BY D. WHITE, RAFFERTY, PILEGGI, ORIE, SCARNATI,
           ROBBINS, ERICKSON, GORDNER, C. WILLIAMS AND FONTANA,
           OCTOBER 23, 2007

        SENATOR D. WHITE, BANKING AND INSURANCE, AS AMENDED,
           OCTOBER 24, 2007

                                     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," further providing for medical
    16     professional liability insurance and for the Medical Care
    17     Availability and Reduction of Error Fund; providing for the
    18     Medical Care Availability and Reduction of Error (Mcare)
    19     Reserve Fund; and further providing for abatement program,
    20     for the Health Care Provider Retention Account and for
    21     expiration.

    22     The General Assembly of the Commonwealth of Pennsylvania
    23  hereby enacts as follows:
    24     Section 1.  Sections 711 and 712 of the act of March 20, 2002
    25  (P.L.154, No.13), known as the Medical Care Availability and
    26  Reduction of Error (Mcare) Act, are amended to read:


     1  Section 711.  Medical professional liability insurance.
     2     (a)  Requirement.--A health care provider providing health
     3  care services in this Commonwealth shall:
     4         (1)  purchase medical professional liability insurance
     5     from an insurer which is licensed or approved by the
     6     department; or
     7         (2)  provide self-insurance.
     8     (b)  Proof of insurance.--A health care provider required by
     9  subsection (a) to purchase medical professional liability
    10  insurance or provide self-insurance shall submit proof of
    11  insurance or self-insurance to the department within 60 days of
    12  the policy being issued.
    13     (c)  Failure to provide proof of insurance.--If a health care
    14  provider fails to submit the proof of insurance or self-
    15  insurance required by subsection (b), the department shall,
    16  after providing the health care provider with notice, notify the
    17  health care provider's licensing authority. A health care
    18  provider's license shall be suspended or revoked by its
    19  licensure board or agency if the health care provider fails to
    20  comply with any of the provisions of this chapter.
    21     (d)  Basic coverage limits.--A health care provider shall
    22  insure or self-insure medical professional liability in
    23  accordance with the following:
    24         (1)  For policies issued or renewed in the calendar year
    25     2002, the basic insurance coverage shall be:
    26             (i)  $500,000 per occurrence or claim and $1,500,000
    27         per annual aggregate for a health care provider who
    28         conducts more than 50% of its health care business or
    29         practice within this Commonwealth and that is not a
    30         hospital.
    20070S1137B1491                  - 2 -     

     1             (ii)  $500,000 per occurrence or claim and $1,500,000
     2         per annual aggregate for a health care provider who
     3         conducts 50% or less of its health care business or
     4         practice within this Commonwealth.
     5             (iii)  $500,000 per occurrence or claim and
     6         $2,500,000 per annual aggregate for a hospital.
     7         (2)  For policies issued or renewed in the calendar years
     8     2003, 2004 and 2005, the basic insurance coverage shall be:
     9             (i)  $500,000 per occurrence or claim and $1,500,000
    10         per annual aggregate for a participating health care
    11         provider that is not a hospital.
    12             (ii)  $1,000,000 per occurrence or claim and
    13         $3,000,000 per annual aggregate for a nonparticipating
    14         health care provider.
    15             (iii)  $500,000 per occurrence or claim and
    16         $2,500,000 per annual aggregate for a hospital.
    17         (3)  Unless the commissioner finds pursuant to section
    18     745(a) that additional basic insurance coverage capacity is
    19     not available, for policies issued or renewed in calendar
    20     year 2006 and each year thereafter subject to paragraph (4),
    21     the basic insurance coverage shall be:
    22             (i)  Up to $750,000 per occurrence or claim and
    23         $2,250,000 per annual aggregate for a participating
    24         health care provider that is not a hospital.
    25             (ii)  Up to $1,000,000 per occurrence or claim and
    26         $3,000,000 per annual aggregate for a nonparticipating
    27         health care provider.
    28             (iii)  Up to $750,000 per occurrence or claim and
    29         $3,750,000 per annual aggregate for a hospital.
    30     If the commissioner finds pursuant to section 745(a) that
    20070S1137B1491                  - 3 -     

     1     additional basic insurance coverage capacity is not
     2     available, the basic insurance coverage requirements shall
     3     remain at the level required by paragraph (2); and the
     4     commissioner shall conduct a study every [two years] year
     5     until the commissioner finds that additional basic insurance
     6     coverage capacity is available, at which time the
     7     commissioner shall increase the required basic insurance
     8     coverage in accordance with this paragraph.
     9         (4)  Unless the commissioner finds pursuant to section
    10     745(b) that additional basic insurance coverage capacity is
    11     not available, for policies issued or renewed [three] two
    12     years after the increase in coverage limits required by
    13     paragraph (3) and for each year thereafter, the basic
    14     insurance coverage shall be:
    15             (i)  Up to $1,000,000 per occurrence or claim and
    16         $3,000,000 per annual aggregate for a participating
    17         health care provider that is not a hospital.
    18             (ii)  Up to $1,000,000 per occurrence or claim and
    19         $3,000,000 per annual aggregate for a nonparticipating
    20         health care provider.
    21             (iii)  Up to $1,000,000 per occurrence or claim and
    22         $4,500,000 per annual aggregate for a hospital.
    23     If the commissioner finds pursuant to section 745(b) that
    24     additional basic insurance coverage capacity is not
    25     available, the basic insurance coverage requirements shall
    26     remain at the level required by paragraph (3); and the
    27     commissioner shall conduct a study every [two years] year
    28     until the commissioner finds that additional basic insurance
    29     coverage capacity is available, at which time the
    30     commissioner shall increase the required basic insurance
    20070S1137B1491                  - 4 -     

     1     coverage in accordance with this paragraph.
     2         (5)  THE AMOUNT OF BASIC INSURANCE COVERAGE PER            <--
     3     OCCURRENCE OR CLAIM UNDER PARAGRAPHS (3) AND (4) SHALL BE NO
     4     LESS THAN $500,000 AND SHALL BE SET IN $50,000 INCREMENTS.
     5     (e)  Fund participation.--A participating health care
     6  provider shall be required to participate in the fund.
     7     (f)  Self-insurance.--
     8         (1)  If a health care provider self-insures its medical
     9     professional liability, the health care provider shall submit
    10     its self-insurance plan, such additional information as the
    11     department may require and the examination fee to the
    12     department for approval.
    13         (2)  The department shall approve the plan if it
    14     determines that the plan constitutes protection equivalent to
    15     the insurance required of a health care provider under
    16     subsection (d).
    17     (g)  Basic insurance liability.--
    18         (1)  An insurer providing medical professional liability
    19     insurance shall not be liable for payment of a claim against
    20     a health care provider for any loss or damages awarded in a
    21     medical professional liability action in excess of the basic
    22     insurance coverage required by subsection (d) unless the
    23     health care provider's medical professional liability
    24     insurance policy or self-insurance plan provides for a higher
    25     limit.
    26         (2)  If a claim exceeds the limits of a participating
    27     health care provider's basic insurance coverage or self-
    28     insurance plan, the fund shall be responsible for payment of
    29     the claim against the participating health care provider up
    30     to the fund liability limits.
    20070S1137B1491                  - 5 -     

     1     (h)  Excess insurance.--
     2         (1)  No insurer providing medical professional liability
     3     insurance with liability limits in excess of the fund's
     4     liability limits to a participating health care provider
     5     shall be liable for payment of a claim against the
     6     participating health care provider for a loss or damages in a
     7     medical professional liability action except the losses and
     8     damages in excess of the fund coverage limits.
     9         (2)  No insurer providing medical professional liability
    10     insurance with liability limits in excess of the fund's
    11     liability limits to a participating health care provider
    12     shall be liable for any loss resulting from the insolvency or
    13     dissolution of the fund.
    14     (i)  Governmental entities.--A governmental entity may
    15  satisfy its obligations under this chapter, as well as the
    16  obligations of its employees to the extent of their employment,
    17  by either purchasing medical professional liability insurance or
    18  assuming an obligation as a self-insurer, and paying the
    19  assessments under this chapter.
    20     (j)  Exemptions.--The following participating health care
    21  providers shall be exempt from this chapter:
    22         (1)  A physician who exclusively practices the specialty
    23     of forensic pathology.
    24         (2)  A participating health care provider who is a member
    25     of the Pennsylvania military forces while in the performance
    26     of the member's assigned duty in the Pennsylvania military
    27     forces under orders.
    28         (3)  A retired licensed participating health care
    29     provider who provides care only to the provider or the
    30     provider's immediate family members.
    20070S1137B1491                  - 6 -     

     1  Section 712.  Medical Care Availability and Reduction of Error
     2                 Fund.
     3     (a)  Establishment.--There is hereby established within the
     4  State Treasury a special fund to be known as the Medical Care
     5  Availability and Reduction of Error Fund. Money in the fund
     6  shall be used to pay claims against participating health care
     7  providers for losses or damages awarded in medical professional
     8  liability actions against them in excess of the basic insurance
     9  coverage required by section 711(d), liabilities transferred in
    10  accordance with subsection (b) and for the administration of the
    11  fund.
    12     (b)  Transfer of assets and liabilities.--
    13         (1)  (i)  The money in the Medical Professional Liability
    14         Catastrophe Loss Fund established under section 701(d) of
    15         the former act of October 15, 1975 (P.L.390, No.111),
    16         known as the Health Care Services Malpractice Act, is
    17         transferred to the fund.
    18             (ii)  The rights of the Medical Professional
    19         Liability Catastrophe Loss Fund established under section
    20         701(d) of the former Health Care Services Malpractice Act
    21         are transferred to and assumed by the fund.
    22         (2)  The liabilities and obligations of the Medical
    23     Professional Liability Catastrophe Loss Fund established
    24     under section 701(d) of the former Health Care Services
    25     Malpractice Act are transferred to and assumed by the fund.
    26     (c)  Fund liability limits.--
    27         (1)  For calendar year 2002, the limit of liability of
    28     the fund created in section 701(d) of the former Health Care
    29     Services Malpractice Act for each health care provider that
    30     conducts more than 50% of its health care business or
    20070S1137B1491                  - 7 -     

     1     practice within this Commonwealth and for each hospital shall
     2     be $700,000 for each occurrence and $2,100,000 per annual
     3     aggregate.
     4         (2)  The limit of liability of the fund for each
     5     participating health care provider shall be as follows:
     6             (i)  For calendar year 2003 and each year thereafter,
     7         the limit of liability of the fund shall be $500,000 for
     8         each occurrence and $1,500,000 per annual aggregate.
     9             (ii)  If the basic insurance coverage requirement is
    10         increased in accordance with section 711(d)(3) or (4)
    11         and, notwithstanding subparagraph (i), for each calendar
    12         year following the increase in the basic insurance
    13         coverage requirement, the limit of liability of the fund
    14         shall be [$250,000 for each occurrence and $750,000 per
    15         annual aggregate.
    16             (iii)  If the basic insurance coverage requirement is
    17         increased in accordance with section 711(d)(4) and,
    18         notwithstanding subparagraphs (i) and (ii), for each
    19         calendar year following the increase in the basic
    20         insurance coverage requirement, the limit of liability of
    21         the fund shall be zero] $1,000,000 per occurrence and
    22         $3,000,000 per annual aggregate, except hospitals which
    23         shall be $1,000,000 per occurrence and $4,500,000 per
    24         annual aggregate, minus the amount the commissioner
    25         determines for basic insurance coverage under section
    26         711(d)(3) and (4).
    27     (d)  Assessments.--
    28         (1)  For calendar year 2003 and for each year thereafter,
    29     the fund shall be funded by an assessment on each
    30     participating health care provider. Assessments shall be
    20070S1137B1491                  - 8 -     

     1     levied by the department on or after January 1 of each year.
     2     The assessment shall be based on the prevailing primary
     3     premium for each participating health care provider and
     4     shall, in the aggregate, produce an amount sufficient to do
     5     all of the following:
     6             (i)  Reimburse the fund for the payment of reported
     7         claims which became final during the preceding claims
     8         period.
     9             (ii)  Pay expenses of the fund incurred during the
    10         preceding claims period.
    11             (iii)  Pay principal and interest on moneys
    12         transferred into the fund in accordance with section
    13         713(c).
    14             (iv)  Provide a reserve that shall be 10% of the sum
    15         of subparagraphs (i), (ii) and (iii).
    16         (2)  The department shall notify all basic insurance
    17     coverage insurers and self-insured participating health care
    18     providers of the assessment by November 1 for the succeeding
    19     calendar year. The department shall bill and collect the
    20     assessment from all participating health care providers.
    21         (3)  Any appeal of the assessment shall be filed with the
    22     department.
    23     (e)  Discount on surcharges and assessments.--
    24         (1)  For calendar year 2002, the department shall
    25     discount the aggregate surcharge imposed under section
    26     701(e)(1) of the Health Care Services Malpractice Act by 5%
    27     of the aggregate surcharge imposed under that section for
    28     calendar year 2001 in accordance with the following:
    29             (i)  Fifty percent of the aggregate discount shall be
    30         granted equally to hospitals and to participating health
    20070S1137B1491                  - 9 -     

     1         care providers that were surcharged as members of one of
     2         the four highest rate classes of the prevailing primary
     3         premium.
     4             (ii)  Notwithstanding subparagraph (i), 50% of the
     5         aggregate discount shall be granted equally to all
     6         participating health care providers.
     7             (iii)  The department shall issue a credit to a
     8         participating health care provider who, prior to the
     9         effective date of this section, has paid the surcharge
    10         imposed under section 701(e)(1) of the former Health Care
    11         Services Malpractice Act for calendar year 2002 prior to
    12         the effective date of this section.
    13         (2)  For calendar years 2003 and 2004, the department
    14     shall discount the aggregate assessment imposed under
    15     subsection (d) for each calendar year by 10% of the aggregate
    16     surcharge imposed under section 701(e)(1) of the former
    17     Health Care Services Malpractice Act for calendar year 2001
    18     in accordance with the following:
    19             (i)  Fifty percent of the aggregate discount shall be
    20         granted equally to hospitals and to participating health
    21         care providers that were assessed as members of one of
    22         the four highest rate classes of the prevailing primary
    23         premium.
    24             (ii)  Notwithstanding subparagraph (i), 50% of the
    25         aggregate discount shall be granted equally to all
    26         participating health care providers.
    27         (3)  For calendar years 2005 and thereafter, if the basic
    28     insurance coverage requirement is increased in accordance
    29     with section 711(d)(3) or (4), the department may discount
    30     the aggregate assessment imposed under subsection (d) by an
    20070S1137B1491                 - 10 -     

     1     amount not to exceed the aggregate sum to be deposited in the
     2     fund in accordance with subsection (m).
     3     (f)  Updated rates.--The joint underwriting association shall
     4  file updated rates for all health care providers with the
     5  commissioner by May 1 of each year. The department shall review
     6  and may adjust the prevailing primary premium in line with any
     7  applicable changes which have been approved by the commissioner.
     8     (g)  Additional adjustments of the prevailing primary
     9  premium.--The department shall adjust the applicable prevailing
    10  primary premium of each participating health care provider in
    11  accordance with the following:
    12         (1)  The applicable prevailing primary premium of a
    13     participating health care provider which is not a hospital
    14     may be adjusted through an increase in the individual
    15     participating health care provider's prevailing primary
    16     premium not to exceed 20%. Any adjustment shall be based upon
    17     the frequency of claims paid by the fund on behalf of the
    18     individual participating health care provider during the past
    19     five most recent claims periods and shall be in accordance
    20     with the following:
    21             (i)  If three claims have been paid during the past
    22         five most recent claims periods by the fund, a 10%
    23         increase shall be charged.
    24             (ii)  If four or more claims have been paid during
    25         the past five most recent claims periods by the fund, a
    26         20% increase shall be charged.
    27         (2)  The applicable prevailing primary premium of a
    28     participating health care provider which is not a hospital
    29     and which has not had an adjustment under paragraph (1) may
    30     be adjusted through an increase in the individual
    20070S1137B1491                 - 11 -     

     1     participating health care provider's prevailing primary
     2     premium not to exceed 20%. Any adjustment shall be based upon
     3     the severity of at least two claims paid by the fund on
     4     behalf of the individual participating health care provider
     5     during the past five most recent claims periods.
     6         (3)  The applicable prevailing primary premium of a
     7     participating health care provider not engaged in direct
     8     clinical practice on a full-time basis may be adjusted
     9     through a decrease in the individual participating health
    10     care provider's prevailing primary premium not to exceed 10%.
    11     Any adjustment shall be based upon the lower risk associated
    12     with the less-than-full-time direct clinical practice.
    13         (4)  The applicable prevailing primary premium of a
    14     hospital may be adjusted through an increase or decrease in
    15     the individual hospital's prevailing primary premium not to
    16     exceed 20%. Any adjustment shall be based upon the frequency
    17     and severity of claims paid by the fund on behalf of other
    18     hospitals of similar class, size, risk and kind within the
    19     same defined region during the past five most recent claims
    20     periods.
    21     (h)  Self-insured health care providers.--A participating
    22  health care provider that has an approved self-insurance plan
    23  shall be assessed an amount equal to the assessment imposed on a
    24  participating health care provider of like class, size, risk and
    25  kind as determined by the department.
    26     (i)  Change in basic insurance coverage.--If a participating
    27  health care provider changes the term of its medical
    28  professional liability insurance coverage, the assessment shall
    29  be calculated on an annual basis and shall reflect the
    30  assessment percentages in effect for the period over which the
    20070S1137B1491                 - 12 -     

     1  policies are in effect.
     2     (j)  Payment of claims.--Claims which became final during the
     3  preceding claims period shall be paid on or before December 31
     4  following the August 31 on which they became final.
     5     (k)  Termination.--Upon satisfaction of all liabilities of
     6  the fund, the fund shall terminate. Any balance remaining in the
     7  fund upon such termination shall be returned by the department
     8  to the participating health care providers who participated in
     9  the fund in proportion to their assessments in the preceding
    10  calendar year.
    11     (l)  Sole and exclusive source of funding.--Except as
    12  provided in subsection (m), the surcharges imposed under section
    13  701(e)(1) of the Health Care Services Malpractice Act and
    14  assessments on participating health care providers and any
    15  income realized by investment or reinvestment shall constitute
    16  the sole and exclusive sources of funding for the fund. Nothing
    17  in this subsection shall prohibit the fund from accepting
    18  contributions from nongovernmental sources. A claim against or a
    19  liability of the fund shall not be deemed to constitute a debt
    20  or liability of the Commonwealth or a charge against the General
    21  Fund.
    22     (m)  Supplemental funding.--Notwithstanding the provisions of
    23  75 Pa.C.S. § 6506(b) (relating to surcharge) to the contrary,
    24  beginning January 1, 2004, and for a period of nine calendar
    25  years thereafter, all surcharges levied and collected under 75
    26  Pa.C.S. § 6506(a) by any division of the unified judicial system
    27  shall be remitted to the Commonwealth for deposit in the Medical
    28  Care Availability and Restriction of Error Fund. These funds
    29  shall be used to reduce surcharges and assessments in accordance
    30  with subsection (e). Beginning January 1, 2014, and each year
    20070S1137B1491                 - 13 -     

     1  thereafter, the surcharges levied and collected under 75 Pa.C.S.
     2  § 6506(a) shall be deposited into the General Fund.
     3     (n)  Waiver of right to consent to settlement.--A
     4  participating health care provider may maintain the right to
     5  consent to a settlement in a basic insurance coverage policy for
     6  medical professional liability insurance upon the payment of an
     7  additional premium amount.
     8     Section 2.  Chapter 7 of the act is amended by adding
     9  subchapters to read:
    10                            SUBCHAPTER E
    11          MEDICAL CARE AVAILABILITY AND REDUCTION OF ERROR
    12                        (MCARE) RESERVE FUND
    13  Section 751.  Establishment.
    14     There is established within the State Treasury a special fund
    15  to be known as the Medical Care Availability and Reduction of
    16  Error (Mcare) Reserve Fund.
    17  Section 752.  Allocation.
    18     Money in the Medical Care Availability and Reduction of Error
    19  (Mcare) Reserve Fund shall be allocated annually as follows:
    20         (1)  Fifty percent of the total amount in the Medical
    21     Care Availability and Reduction of Error (Mcare) Reserve Fund
    22     shall remain in the Medical Care Availability and Reduction
    23     of Error (Mcare) Reserve Fund for the sole purpose of
    24     reducing the unfunded liability of the fund.
    25         (2)  Twenty-five percent of the total amount in the
    26     Medical Care Availability and Reduction of Error (Mcare)
    27     Reserve Fund shall be transferred to the Patient Safety Trust
    28     Fund for use by the Department of Public Welfare for
    29     implementing section 407.
    30         (3)  Twenty-five percent of the total amount in the
    20070S1137B1491                 - 14 -     

     1     Medical Care Availability and Reduction of Error (Mcare)
     2     Reserve Fund shall be transferred to the Medical Safety
     3     Automation Fund.
     4                            SUBCHAPTER F
     5                   MEDICAL SAFETY AUTOMATION FUND
     6  Section 762.  Medical Safety Automation Fund established.
     7     There is established within the State Treasury a special fund
     8  to be known as the Medical Safety Automation Fund. No money in
     9  the Medical Safety Automation Fund shall be used until
    10  legislation is enacted for the purpose of providing medical
    11  safety automation system grants to health care providers under
    12  the act of July 19, 1979 (P.L.130, No.48), known as the Health
    13  Care Facilities Act, a group practice or a community-based
    14  health care provider.
    15     Section 3.  Section 1102 of the act, amended October 27, 2006
    16  (P.L.1198, No.128), is amended to read:
    17  Section 1102.  Abatement program.
    18     (a)  Establishment.--There is hereby established within the
    19  Insurance Department a program to be known as the Health Care
    20  Provider Retention Program. The Insurance Department, in
    21  conjunction with the Department of Public Welfare, shall
    22  administer the program. The program shall provide assistance in
    23  the form of assessment abatements to health care providers for
    24  calendar years 2003, 2004, 2005, 2006 [and], 2007 and 2008,
    25  except that licensed podiatrists shall not be eligible for
    26  calendar years 2003 and 2004, and nursing homes shall not be
    27  eligible for calendar years 2003, 2004 and 2005.
    28     (b)  Other abatement.--Emergency physicians not employed full
    29  time by a trauma center or working under an exclusive contract
    30  with a trauma center shall retain eligibility for an abatement
    20070S1137B1491                 - 15 -     

     1  pursuant to section 1104(b)(2) for calendar years 2003, 2004,
     2  2005 and 2006. Commencing in calendar year 2007, these emergency
     3  physicians shall be eligible for an abatement pursuant to
     4  section 1104(b)(1).
     5     Section 4.  Section 1112 of the act, added December 22, 2005
     6  (P.L.458, No.88), is amended to read:
     7  Section 1112.  Health Care Provider Retention Account.
     8     (a)  Fund established.--There is established within the
     9  General Fund a special account to be known as the Health Care
    10  Provider Retention Account. Funds in the account shall be
    11  subject to an annual appropriation by the General Assembly to
    12  the Department of Public Welfare. The Department of Public
    13  Welfare shall administer funds appropriated under this section
    14  consistent with its duties under section 201(1) of the act of
    15  June 13, 1967 (P.L.31, No.21), known as the Public Welfare Code.
    16     (b)  Transfers from Mcare Fund.--By December 31 of each year,
    17  the Secretary of the Budget may transfer from the Medical Care
    18  Availability and Reduction of Error (Mcare) Fund established in
    19  section 712(a) to the account an amount equal to the difference
    20  between the amount deposited under section 712(m) and the amount
    21  granted as discounts under section 712(e)(2) for that calendar
    22  year.
    23     (c)  Transfers from account.--The Secretary of the Budget may
    24  annually transfer from the account to the Medical Care
    25  Availability and Reduction of Error (MCARE) Fund an amount up to
    26  the aggregate amount of abatements granted by the Insurance
    27  Department under section 1104(b).
    28     (c.1)  Transfers to the Medical Care Availability and
    29  Reduction of Error (Mcare) Reserve Fund.--If the Secretary of
    30  the Budget makes a transfer from the account under subsection
    20070S1137B1491                 - 16 -     

     1  (c), the remaining funds in the account shall be transferred to
     2  the Medical Care Availability and Reduction of Error (Mcare)
     3  Reserve Fund. If the Secretary of the Budget does not make a
     4  transfer from the account under subsection (c), all of the funds
     5  in the account shall be transferred to the Medical Care
     6  Availability and Reduction of Error (Mcare) Reserve Fund.
     7     (d)  Other deposits.--The Department of Public Welfare may
     8  deposit any other funds received by the department which it
     9  deems appropriate in the account.
    10     (e)  Administration assistance.--The Insurance Department
    11  shall provide assistance to the Department of Public Welfare in
    12  administering the account.
    13     Section 5.  Section 1115 of the act, amended October 27, 2006
    14  (P.L.1198, No.128), is amended to read:
    15  Section 1115.  Expiration.
    16     The Health Care Provider Retention Program established under
    17  this chapter shall expire December 31, [2008] 2009.
    18     Section 6.  Section 5106 of the act is amended to read:
    19  Section 5106.  Expiration.
    20     Section 312 shall expire on December 31, [2007] 2008.
    21     Section 7.  This act shall take effect in 60 days.






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