Rule-Making Notices
Notice of Hearing
Insurance
NOTICE IS HEREBY GIVEN that pursuant to the authority granted under section
601.41 (3), Stats., and the procedures set forth in under section
227.18, Stats., OCI will hold a public hearing to consider the adoption of the attached proposed rulemaking order revising Chapter
Ins 17 Wis. Adm. Code, relating to annual injured patients and families compensation fund fees, mediation panel fees, and provider classifications.
Hearing Information
Date and Time Location
April 13, 2011 OCI
Wednesday Room 227, 2nd Floor
at 10:00 A.M. 125 South Webster Street
Madison, WI 53703
Submittal of Written Comments
Written comments can be mailed to:
Theresa L. Wedekind
Legal Unit - OCI Rule Comment for Rule Ins 1701
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Written comments can be hand delivered to:
Theresa L. Wedekind
Legal Unit - OCI Rule Comment for Rule Ins 1701
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Comments can be emailed to:
Theresa L. Wedekind
Comments submitted through the Wisconsin Administrative Rule Web site at: http://adminrules.
wisconsin.gov on the proposed rule will be considered.
The deadline for submitting comments is 4:00 p.m. on the 7th day after the date for the hearing stated in this Notice of Hearing.
Copies of Proposed Rule
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the OCI internet Web site at
http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, Public Information and Communications, OCI, at:
inger.williams@wisconsin.gov, (608) 264-8110, 125 South Webster Street – 2
nd Floor, Madison WI or PO Box 7873, Madison WI 53707-7873.
Analysis Prepared by the Office of the Commissioner of Insurance (OCI)
Statute(s) interpreted
Statutory authority
Explanation of agency authority
The commissioner of insurance, with the approval of the board of governors (board) of the injured patients and families compensation fund (fund), is required to establish by administrative rule the annual fees which participating health care providers must pay to the fund and the annual fee due for the operation of the medical mediation panel.
Related statute or rule
None.
Plain language analysis
This rule establishes the fees that participating health care providers must pay to the fund for the fiscal year beginning July 1, 2011. These fees represent a 8.5% increase from fees paid for the 2010-11 fiscal year. The board approved these fees at its meeting on February 16, 2011, based on the recommendation of the board's actuarial and underwriting committee and reports of the fund's actuaries.
This rule includes additions to the Insurance Services Office (ISO) code listing to address new classification specialties. ISO codes are the numerical designation for a health care provider's specialty and are used to classify the provider for assessment purposes.
The board is also required to promulgate by rule the annual fees for the operation of the injured patients and families compensation mediation system, based on the recommendation of the director of state courts. The recommendation of the director of state courts was reviewed by the board's actuarial and underwriting committee. This rule implements the funding level approved by the board by establishing mediation panel fees for the next fiscal year at $25.00 for physicians and $5.00 per occupied bed for hospitals, representing a decrease of $3.00 per physician and a decrease of $1.00 per occupied bed for hospitals from 2010-11 fiscal year mediation panel fees.
Comparison with existing or proposed federal regulations
To the fund board's and OCI's knowledge there is no existing or proposed federal regulation that is intended to address patient compensation fund rates, administration or activities.
Comparison with similar rules in adjacent states
To the fund board's and OCI's knowledge there are no similar rules in the adjacent states to compare this rule to as none of adjacent states have a patients compensation fund created by statute where rates are directed to be established yearly by rule as is true in Wisconsin.
Summary of factual data and analytical methodologies
None. This rule establishes annual fund fees pursuant to the requirements of the above-noted Wisconsin statutes.
Analysis and supporting documents used to determine effect on small business or in preparation of an economic impact report
This increase in fund fees will have an effect on some small businesses in Wisconsin, particularly those that employ physicians and other health care professionals. The mediation panel fee is assessed only on physicians and hospitals, not on corporations or other health care entities. The fund fee increases will affect only those small businesses that pay the fund fees and mediation panel fees on behalf of their employed physicians. However, the fund fee increase will not have a significant effect nor should it negatively affect the small business's ability to compete with other providers.
Effect on Small Business
This rule will have little or no effect on small businesses. The increase contained in the proposed rule will require providers to pay an increased fund fee which will increase the operational expenses for the providers. However, this increase is not considered to be significant and will have no effect on the provider's competitive abilities.
Small business regulatory coordinator
The OCI small business coordinator is Eileen Mallow and may be reached at phone number (608) 266-7843 or at email address
eileen.mallow@wisconsin.gov.
Fiscal Estimate
Assumptions used in arriving at fiscal estimate
The Injured Patients and Families Compensation Fund (IPFCF or Fund) is a segregated fund. Annual Fund fees are established to become effective each July 1 based the Fund's needs for payment of medical malpractice claims. The proposed fees were approved by the Fund's Board of Governors at its February 16, 2011, meeting and represent an increase of 8.5% over fiscal year 2011 fund fees.
The Fund is a unique fund; there are no other funds like it in the country. The Fund provides unlimited liability coverage and participation is mandatory. These two features make this Fund unique compared to funds in other states. The only persons who will be affected by this rule change are the Fund participants themselves as the IPFCF is fully funded through assessments paid by Fund participants.
There is no effect on GPR.
State fiscal effect: None. Fund sources affected: SEG.
Local fiscal effect: No local government costs.
Long-range fiscal implications: None.
Private sector fiscal analysis
The increase in fees promulgated by this rule does not result in a significant fiscal effect on the private sector. Although a health care provider may pass this increase on to its patients, there will not be a significant fiscal effect on the private sector as a result of this proposed rule.
