Orders : Bureau of Insurance

IN RE: RURAL MEDICAL ACCESS PROGRAM
Docket No. INS 00-3044

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ORDER AS TO
REQUIRED
ASSESSMENT

Pursuant to 24-A M.R.S.A. §6305 (2), the Superintendent of Insurance is required to determine the final physician and hospital professional liability claim and claim settlement cost savings attributable to the collateral source rule reform provisions contained in 24 M.R.S.A. §2906. The Superintendent is further required to determine the physician and hospital professional liability insurance claims and claim settlement cost savings attributable to the Medical Liability Demonstration Project conducted under former 24 M.R.S.A. §§2971-2978.

The Superintendent hereby determines the final medical professional liability cost savings attributable to the reform of the collateral source rule to be 2.5%. The Superintendent hereby determines the final medical professional liability cost savings attributable to the Medical Liability Demonstration Project to be 0.0%. These findings are based on a report to the Maine Bureau of Insurance from Robert L. Sanders, F.C.A. S., M.A.A.A., Consulting Actuary and Chad C. Karls, F.C.A.S., M.A.A.A.. Actuary and other independent information available to the Bureau. Both Mr. Sanders and Mr. Karls are employed by Milliman & Robertson, Inc. of Brookfield, Wisconsin. Milliman & Robertson, Inc. had been retained as a consultant to the Bureau to conduct an analysis of the effect of 24 M.R.S.A. §2906 and of the Medical Liability Demonstration Project.

It is the understanding of the Superintendent that, pursuant to 24-A M.R.S.A. §6305 insurers shall continue to assess physician and hospital professional liability insurance policies at the rate of 1.25% of premium subject to an assessment cap of $500,000 per year. Additionally, §6305 requires every self-insured physician or physician's employer and every self-insured hospital to remit the required assessment to the principal writer of physicians' malpractice insurance in Maine, who is currently Medical Mutual Insurance Company, P.O Box 15275, Portland, Maine 04112-5275. The purpose of the assessment is to provide funds for the Rural Medical Access Program, which promotes perinatal services in underserved areas of the State. See 24-A M.R.S.A. §§6302 and 6304.

NOTICE OF RIGHT TO HEARING

The Superintendent has exercised his discretion to issue this Order without a hearing. Accordingly, any person aggrieved by this Order may apply to the Superintendent for a hearing. Any such application must be signed and sworn to and filed within 30 days after the applicant knew or reasonably should have known of the issuance of this Order. Further, any application must state in what way the applicant is aggrieved and the grounds to be relied upon for the relief to be demanded at the hearing. See 24-A M.R.S.A. § 229.

This Order is effective December 19, 2000. A request for hearing shall not stay this Order.

Dated: December 19, 2000

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Alessandro A. Iuppa
Superintendent of Insurance

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