Pa. Approves New Med Mal Insurance Entities

NU Online News Service, Dec. 26, 11:50 a.m.EST?Pennsylvania Governor Mark Schweiker has approved twonew medical-malpractice insurance entities in his state, expandingoptions for medical providers in a tight insurance marketplace.

"Since April, 15 entities have entered the medical-malpracticeinsurance marketplace in Pennsylvania, thanks in part to theimprovements made by Gov. Schweiker over the last year," saidPennsylvania Insurance Commissioner M. Diane Koken, who announcedthe approval on behalf of Gov. Schweiker.

"These two new entities are part of a growing list of companiesthat are organizing to offer medical providers more options in avery tight medical-malpractice insurance marketplace," shesaid.

The Schweiker administration, Ms. Koken added, has beencommitted to working with healthcare providers to see that theyfully understand the coverage options available to them.

"In addition, we continue to work to expedite access for anyentity interested in entering the Pennsylvania medical-malpracticeinsurance marketplace," she said.

The two new entities are:

? The Pennsylvania Health Providers Reciprocal Exchange ofHarrisburg, which will market its liability products across thestate to all types of physicians and dentists. The Exchange alreadyhas 100 medical providers as subscribers.

? The United Central PA Reciprocal Risk Retention Group ofHarrisburg, which is a risk retention group whose members are partof the Pinnacle Health System.

The addition of these two entities brings the total number ofmedical-malpractice insurers in Pennsylvania to around 70,according to Rosanne Placey, a representative for the PennsylvaniaInsurance Department.

The following is a listing of recently approved entities in thestate:

? Vienna, Va.-based Campmed Casualty & Indemnity CompanyInc. of Maryland

? Community Health Alliance Reciprocal Risk Retention Group inBurlington, Vt.

? Community Hospital Alternative for Risk Transfer inBurlington, Vt.

? First Medical Insurance Company of Burlington, Vt.

? Fortress Insurance Company in Rosemont, Idaho.

? Boston-based Homeland Insurance Company of New York.

? Millennium Insurance Company in Newtown Square, Pa.

? National Guardian Risk Retention Group Inc. in Traverse City,Mich.

? Pennsylvania Healthcare Providers Insurance Exchange inHarrisburg, Pa.

? Physicians Specialty Ltd., a Charleston, S.C.-based riskretention group.

? Positive Mutual Risk Retention Group Inc. in Greenville,S.C.

? Professional Solutions Insurance Company in West Des Moines,Iowa.

? Birmingham, Ala.-based Red Mountain Casualty Insurance CompanyInc.

? United Central PA, a reciprocal risk retention group inHarrisburg, Pa.

Gov. Schweiker, whose term expires next month, has taken severalsteps recently to provide relief for healthcare providers facingcostly malpractice insurance in his state.

Earlier this month, for example, the governor requested thatprivate malpractice insurers postpone the collection ofPennsylvania's Medical Care Availability and Reduction of Errorfund assessment payment--which offers a catastrophic layer inmalpractice coverage--from healthcare providers until April 30,2003.

This measure is expected to provide much-needed breathing roomfor insureds by removing the burden of paying both primaryinsurance and M-care fund assessments simultaneously untilgovernor-elect Ed Rendell's task force on malpractice reform offersits recommendations.

Furthermore, Commissioner Koken announced last month that theinsurance department has approved a move by the PennsylvaniaProfessional Liability Joint Underwriting Association--which is theinsurer of last resort and has significantly higher premiums thanwhat the private marketplace offers--to propose a 15 percentpremium discount to loss-free healthcare providers beginning nextyear.

Last June, Gov. Schweiker called for and signed legislation tochange the state's liability law, requiring hospitals or businessesto only pay to the degree of responsibility assigned by a judge orjury. If a company is found 10 percent at fault, for instance, itwould be forced to pay no more than 10 percent of the award.