The Indiana Department of Insurance (IDOI) has issued a notification that beginning March 1 Indiana physicians will see a 17.7 percent drop in the surcharge rate they pay on malpractice insurance for the Patient’s Compensation Fund. Hospitals will see a 28.4 percent decrease.
“The ISMA routinely works closely with insurance department staff to defend the PCF,” said Julie Reed, ISMA legal counsel. “Our work has directly contributed to this current reduction in rates and allowed physicians to receive a 37.3 percent reduction over the past three years.”
The balance in the fund has continued to grow, permitting the rate reductions. Today, the fund is strong with $194,291,575 on hand; in 2004, the balance dipped below $5 million.
January payout completed
In the most recent payout last month, cases paid held steady at 75. One of those cases involved newborn twins and resulted in a large payout of $1.6 million.
By law, the IDOI administers the PCF, established by the 1975 Indiana Compensation Act for Patients, and handles payouts twice a year – in January and July. Physicians, hospitals and other health care professionals throughout the state pay a surcharge on their malpractice insurance rate to fuel the PCF.
Learn more about the PCF and Indiana’s malpractice law on the ISMA Web site.