LRB-3814/1
PJK:kjf:ch
2005 - 2006 LEGISLATURE
October 17, 2005 - Introduced by Representative Ziegelbauer. Referred to
Committee on Insurance.
AB769,1,4
1An Act to create 655.27 (4) (bm) and 655.27 (4) (h) of the statutes;
relating to:
2requiring actuarial audits of the injured patients and families compensation
3fund and authorizing the fund's board of governors to organize an insurance
4corporation.
Analysis by the Legislative Reference Bureau
The health care liability provisions of the statutes require certain health care
providers to carry health care liability (medical malpractice) insurance with liability
limits of at least $1,000,000 for each occurrence and at least $3,000,000 for all
occurrences in a policy year. Any portion of a medical malpractice claim that exceeds
the policy limits is paid by the injured patients and families compensation fund
(fund) for health care providers that are subject to the health care liability
provisions. Money for the fund comes from annual fees paid by health care providers
that are subject to the health care liability provisions.
The fund is managed by a 13-member board of governors, which includes the
commissioner of insurance (commissioner) or a designated representative of the
Office of the Commissioner of Insurance. The fees paid by health care providers are
set by the commissioner, with the approval of the board of governors, primarily on
the basis of past and prospective loss and expense experience for each individual
health care provider, for different types of practice, and for the fund in general.
This bill requires the board of governors regularly, but at least once every two
years, to contract for the performance of an actuarial audit of the fund. Under
current law, all audits of the fund are open to the general public for reasonable
inspection. The bill also authorizes the board of governors to organize an insurance
corporation to write and offer health care liability insurance to health care providers
in this state if the board of governors determines that there is not enough price
competition among insurers that offer health care liability insurance in the state.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB769, s. 1
1Section
1. 655.27 (4) (bm) of the statutes is created to read:
AB769,2,32
655.27
(4) (bm) The board of governors shall regularly, but not less often than
3once every 2 years, contract for the performance of an actuarial audit of the fund.
AB769, s. 2
4Section
2. 655.27 (4) (h) of the statutes is created to read:
AB769,2,95
655.27
(4) (h) If the board of governors determines that too little price
6competition exists among insurers that offer health care liability insurance in the
7state, the board of governors may organize an insurance corporation to write and
8offer health care liability insurance to health care providers in this state to promote
9greater price competition in the health care liability insurance market.
