Bill Text: PA SB902 | 2011-2012 | Regular Session | Introduced

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Bill Title: Further providing for the Medical Care Availability and Reduction of Error Fund.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2011-03-25 - Referred to BANKING AND INSURANCE [SB902 Detail]

Download: Pennsylvania-2011-SB902-Introduced.html

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PRINTER'S NO. 917
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 902 Session of2011
INTRODUCED BY WARD, M. WHITE, BROWNE, D. WHITE AND ORIE, MARCH 25, 2011
REFERRED TO BANKING AND INSURANCE, MARCH 25, 2011
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," further providing for the Medical Care
Availability and Reduction of Error Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 712(d) of the act of March 20, 2002
(P.L.154, No.13), known as the Medical Care Availability and
Reduction of Error (Mcare) Act, is amended and the section is
amended by adding a subsection to read:
Section 712. Medical Care Availability and Reduction of Error
Fund.
* * *
(d) Assessments.--
(1) For calendar year 2003 and for each year thereafter,
the fund shall be funded by an assessment on each
participating health care provider. Assessments shall be
levied by the department on or after January 1 of each year.
The assessment shall be based on the prevailing primary
premium for each participating health care provider and
shall, in the aggregate, produce an amount [sufficient to do
all of the following] equal to the sum of the following
amounts minus the estimated fund balance at the close of the
calendar year preceding the assessment year:
(i) [Reimburse the fund for the payment of] The
reported claims which became final during the preceding
claims period.
(ii) [Pay] The expenses of the fund incurred during
the preceding claims period.
(iii) [Pay] The outstanding principal and interest
on moneys transferred into the fund in accordance with
section 713(c).
(iv) [Provide a reserve that shall be 10%] Ten
percent of the sum of subparagraphs (i), (ii) and (iii).
(2) The department shall notify all basic insurance
coverage insurers and self-insured participating health care
providers of the assessment by November 1 for the succeeding
calendar year.
(3) Any appeal of the assessment shall be filed with the
department.
(d.1) Payment of assessment.--
(1) A basic coverage insurer shall bill and collect the
assessments on its insureds and remit collected assessments
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to the fund. The following deadlines shall apply, unless the
commissioner grants an extension by providing notice in the
Pennsylvania Bulletin:
(i) A basic coverage insurer shall bill the
assessment no later than 30 days after the inception date
or renewal date, as applicable, of the basic insurance
coverage policy.
(ii) A health care provider, professional
corporation, professional association and partnership
shall pay its assessment to its basic coverage insurer
within 60 days of the inception date or renewal date of
its basic insurance coverage policy or 30 days from
billing, whichever is later.
(iii) A basic coverage insurer shall remit collected
assessments to the fund within 60 days of the inception
date or renewal date, as applicable, of the basic
insurance coverage policy or within 30 days of receipt,
whichever is later.
(2) Except as provided in paragraph (3), a health care
provider, professional corporation, professional association
and partnership shall be provided basic insurance coverage
from the inception date or renewal date, as applicable, of
its basic insurance coverage policy, regardless of whether
its assessment has been remitted to the fund.
(3) A health care provider, professional corporation,
professional association or partnership that does not pay its
assessment to its basic coverage insurer within the time
frame set forth in paragraph (1)(ii) shall not be provided
basic insurance coverage for a claim unless its assessment
for the basic insurance coverage policy was paid prior to
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reasonable notice of the claim.
* * *
Section 2. The amendment or addition of section 712(d) and
(d.1) of the act is not intended to validate or refute any
position advanced by any party in proceedings challenging the
2009, 2010 and 2011 assessments. The outcome of those
proceedings shall be based upon the statutory language in effect
at the time and appropriate indicia as to the legislative intent
of that language.
Section 3. This act shall take effect in 60 days.
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