Pa. MDs With Good Records To Get Rate Break

NU Online News Service, Nov. 1, 3:46 p.m. EST?Pennsylvania's health-care providers and physicians with no record of malpractice claims will be offered a 15 percent discount by the state's residual market pool insurer, it was announced today.

Gov. Mark Schweiker's office said at his request Insurance Commissioner M. Diane Koken approved the Pennsylvania Professional Liability Joint Underwriting Association's (JUA) filing to offer the discount.

The move by Gov. Schweiker is his latest action in the face of concerns that high rates and scarcity of malpractice insurance is forcing doctors to abandon the state.

Last month Gov. Schweiker signed a bill banning "forum shopping," a process that sees lawyers hunting for a jurisdiction to file their suit where juries have a history of voting hefty awards. Under the measure, medical malpractice lawsuits can only be tried in the county where the malpractice took place.

Gov. Schweiker said the JUA filing "is still one more step we must take to help protect Pennsylvania's world-class health-care system. We've made progress over the last year, but clearly more work needs to be done. My Administration is committed to do everything we can in our final months in office to find the solutions that are needed."

Commissioner Koken added that "physicians who are having difficulties accessing medical-malpractice insurance in the private marketplace will now find the JUA to be a more viable coverage option."

As the state's mandated insurer of last resort for medical-malpractice insurance, the JUA offers coverage to health-care providers who have been declined insurance in the private marketplace.

With this rule and rate revision, the JUA will be able to offer those physicians with a clean claims history a discounted rate, the Governor's Office said.

It was also noted that the Pennsylvania Insurance Department has recently approved and licensed a number of insurance entities created to offer medical-malpractice market alternatives.

Officials said these entities included the following insurance companies: Campmed Casualty and Indemnity Company, and Fortress Insurance Company.

The list also includes the following risk-retention groups: National Guardian Risk Retention Group Inc.; Community Health Alliance Reciprocal Risk Retention Group; First Medical Insurance Co., A Reciprocal Risk Retention Group; Positive Mutual Risk Retention Group Inc.; Millennium Insurance Company; and Community Hospital Alternative for Risk Transfer.

Additionally, the Homeland Insurance Company of New York has been approved as a surplus lines company, writing medical malpractice insurance in Pennsylvania.

"The fact that new insurance entities are considering operating in Pennsylvania will benefit the marketplace," said Commissioner Koken. "We are encouraged by these signs of new life and are committed to working with health-care providers to see that they fully understand the coverage options available to them."

Gov. Schweiker's office noted that in June, he signed legislation to alter Pennsylvania's joint and several liability law, requiring a hospital or business only pay to the degree of responsibility assigned by a judge or jury.

Under the new law, if a company is found 10 percent at fault, it would be forced to pay no more than 10 percent of the award. Previously, a hospital or business ruled to be responsible for only 1 percent of the damages could be held responsible for 100 percent of the award.

In March, Gov. Schweiker signed Act 13, which began work on patient-safety measures and gradual privatization of the state CAT Fund.

Information on the JUA discount is on the JUA Web site at www.pajua.com or the PA PowerPort at www.state.pa.us, PA Keyword: "insurance."

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Pa. MDs With Good Records To Get Rate Break

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