The Latest: HAP and the PA Medical Society have met with the Department of Insurance to discuss the HAP/PA Medical Society legislative proposal to phase out the Mcare Fund, and review department runs of numbers. Representative Glen Grell (R-Cumberland) will be circulating a co-sponsorship memo to lawmakers during early May. HAP and the PA Medical Society are hopeful there will be some movement on the legislation before the June recess.
Background: The Mcare Fund creates administrative inefficiencies and increases costs. Physicians, hospitals, and insurers have argued that the Mcare Fund should be retired and the commonwealth should not be in the medical liability insurance business. Any phase-out of the Mcare Fund must be done in a manner that avoids making health care providers pay an assessment for past claims, while at the same time funding the primary layer for future claims. Unlike private insurance, the Mcare Fund has no reserves and is funded on a “pay-as-you-go basis.” According to the latest report available, the Mcare Fund’s unfunded liability as of December 31, 2010, was approximately $1.23 billion.
Several bills have been introduced that would help reform Pennsylvania’s legal climate:
Apology/Benevolent Gesture Legislation - The House passed House Bill 495, which would make any benevolent gesture made prior to the start of a medical liability action by a health care provider inadmissible as evidence of liability or an admission of guilt. During late April, HAP co-signed a letter with 49 other organizations asking the Senate to move the bill. A companion bill was introduced in the Senate -Senate Bill 565. HAP supports the bills as a means of reducing medical liability lawsuits.
Certificate of Merit - House Bill 1419strengthens the requirements for certification of medical liability actions by requiring the identification of the medical expert certifying a medical liability lawsuit. HAP supports the bill.
