Pa. Gov: Insurers Should Postpone MCARE Collection to Allay Med-Mal Crisis

Pa. Gov. Calls for Postponement of MCARE to Allay Med-Mal Crisis

Pennsylvania Governor Mark Schweiker announced he has directed Insurance Commissioner Diane Koken to request a postponement of Medical Care Availability and Reduction of Error (MCARE) fund assessment by medical malpractice carriers from health care providers until April 30, 2003.

The Insurance Department has also been directed by Gov. Schweiker to ask the Pennsylvania Professional Liability Joint Underwriting Association, commonly known as the insurer of last resort, or JUA, to investigate whether it can accept monthly premium payments for medical malpractice insurance coverage. Premiums are currently paid every six months.

Earlier this month, Commissioner Koken announced that the Insurance Department approved the Pennsylvania Professional Liability Joint Underwriting Association’s (JUA) filing to offer a 15 percent premium discount to loss-free health-care providers effective Jan. 1, 2003.

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 the rule and rate revision, the JUA will be able to offer those physicians with a clean claims history a discounted rate.