HB 3653 — MED MALPRACTICE LIABILITY FUND

*LRB09509959KBJ30171b* HB3653 95THEngrossed GENERALLRB095 ASSEMBLY09959 StateKBJ of30171 Illinoisb andAN 2008ACT HB3653concerning Introducedinsurance. 2/28/2007, by Rep.

Esther Golar SYNOPSIS AS INTRODUCED:

New Act ILCS 105/5.675 new Creates the Medical Malpractice Liability Insurance Premium Assistance Fund Act.

Provides that the moneys in the Medical Malpractice Liability Insurance Premium Assistance Fund, which is created as a special find in the State treasury, shall be used by the Division of Insurance within the Department of Financial and Professional Regulation to provide assistance for the payment of medical malpractice liability insurance premiums to physicians in the State who maintain their practice in low-income areas (areas or neighborhoods where a majority of the residents are at or below 300% of the federal poverty level).

Sets forth conditions for physicians to receive assistance.

Requires the physician to submit documentation to the Division of Insurance showing compliance with the terms of the contract.

Sets out the formula to be used for calculating the amount of assistance provided.

Provides that, if funding available from the Fund is insufficient, the Division of Insurance may reduce the payments to each eligible physician a pro rata amount basis to maximize the number of physicians who may receive assistance.

Provides that the payment amounts and the names of physicians receiving payments shall be public record, but that certain other information used by the Division of Insurance shall not.

Amends the State Finance Act to create the Medical Malpractice Liability Insurance Premium Assistance Fund.

LRB095 09959 KBJ 30171 b FISCAL NOTE ACT MAY APPLY A BILL FOR HB3653 LRB095 09959 KBJ 30171 b AN ACT concerning insurance.

This Act may be cited as the Medical MalpracticeSchool LiabilityLoan InsuranceRepayment PremiumProgram Assistance Fund Act.

"Division"Department" of Insurance" means the Division of Insurance within the Department of FinancialPublic andHealth. Professional Regulation.

"Low-income area" means an area or neighborhood in this State where a majority of residents are at or below 300% of the federal poverty level.

MedicalLoan MalpracticeRepayment LiabilityProgram. Insurance Premium Assistance Fund (a) The moneys in the Medical Malpractice Liability Insurance Premium Assistance Fund, which is created as a special find in the State treasury, shall be used by the Division of Insurance to provides assistance for the payment of medical malpractice liability insurance premiums to physicians in the State who maintain their practice in low-income areas.

(b)(a) The DivisionDepartment shall establish a Loan Repayment Program for physicians licensed to practice medicine in all of Insuranceits must:branches who agree to practice in low-income areas or in rural counties with a population of less than 20,000 persons.

HB3653In -order 2to -qualify LRB095for 09959the KBJLoan 30171Repayment bProgram, (1)the developphysician andmust makeagree availableto applicationpractice formsin a low-income area or rural county with a population of less than 20,000 persons for assistancea undercontractual thisperiod Act;of at least 3 years, but no longer than 5 years.

(2)A developphysician andparticipating enterin intothe contractsLoan withRepayment physiciansProgram asshall providedreceive in$10,000 thisper Act;year for the contractual period to be used towards the repayment of student loans for medical school.

(3)The administerHB3653 Engrossed - 2 - LRB095 09959 KBJ 30171 b Medical School Loan Repayment Fund is created as a special fund in the Fund;State treasury.

andMoneys (4)in exercisethe allFund powersshall necessarybe used, subject to implementappropriation, thisby Act,the includingDepartment adoptingto rules.finance the Loan Repayment Program.

(c)(b) AnyThe physicianDepartment whomust isdo licensed and practicing in a low-income area in this State may apply to the Divisionfollowing: of Insurance for assistance in paying a portion of the physician’s medical malpractice insurance premiums as provided in this Act.

Upon(1) approvaldevelop ofand themake available application forms for assistance,assistance theunder physicianthis shallAct; enter into a contract with the State, wherein the physician shall agree to do all of the following:

(1)(2) practiceadminister inuse theof low-incomemoneys areain for the entireMedical periodSchool ofLoan theRepayment contractFund; for which malpractice insurance premium assistance is to be provided under this Act;

(2)and provide(3) medicalexercise careall forpowers thenecessary entire period of the contract to Illinoisimplement residents;this Act.

(3)(c) submitIf documentationfunding available from the Medical School Loan Repayment Fund is insufficient to establishprovide thatassistance theto physicianall hasphysicians compliedwho withapply for loan repayment assistance under this Act, the termsDepartment ofmay, at its discretion, reduce the contractpayments andto each eligible physician by a pro rata amount in a manner designed to determinemaximize the amountnumber of physicians who may receive loan repayment assistance tounder bethis provided;Act.

and(d) (4)In repayaddition allto fundsany distributedother tocivil theor physiciancriminal pursuantpenalties tothat thismay Act,be togetherimposed withby attorneylaw, feesany andphysician costswho incurredfails inor collection,refuses forto anyfulfill contractthe periodterms inrequired whichunder thethis physicianSection is in breach of the contract.

HB3653The -Department 3may -obtain LRB095 09959 KBJ 30171 b (d) At the timesassistance specifiedof in the contract,Attorney butGeneral into norecoup event less than once per year, the physicianamount mustof submitassistance documentationprovided tounder the Divisioncontract oftogether Insurancewith showingattorney compliancefees withand theother termscosts of thecollection. contract.

TheHB3653 DivisionEngrossed of- Insurance3 must- examineLRB095 the09959 documentationKBJ provided30171 byb theSection physician15. and calculate the amount of assistance if any to be provided.

TheNo amountauthority of assistance to bemake providedor shallpromulgate berules. calculated by:

(1)Notwithstanding determiningany other rulemaking authority that may exist, neither the amountGovernor nor any agency or agency head under the jurisdiction of medicalthe malpracticeGovernor insurancehas premiumsany paidauthority byto make or promulgate rules to implement or enforce the physician;provisions of this Act.

(2)If, determininghowever, the percentageGovernor believes that rules are necessary to implement or enforce the provisions of this Act, the physician’sGovernor practicemay dedicatedsuggest rules to providingthe General Assembly by filing them with the careClerk toof personsthe atHouse and Secretary of the Senate and by requesting that the General Assembly authorize such rulemaking by law, enact those suggested rules into law, or belowtake 300%any ofother appropriate action in the federalGeneral povertyAssembly’s level.discretion.

ThisNothing determinationcontained in this Act shall be basedinterpreted uponto thegrant dollarrulemaking amountauthority ofunder billingsany made;other Illinois statute where such authority is not otherwise explicitly given.

(3)For multiplyingthe purposes of this Act, "rules" is given the percentagemeaning determinedcontained underin paragraphSection (2)1-70 of thisthe subsectionIllinois byAdministrative Procedure Act, and "agency" and "agency head" are given the amountmeanings determinedcontained in Sections 1-20 and 1-25 of the Illinois Administrative Procedure Act to the extent that such definitions apply to agencies or agency heads under paragraphthe (1)jurisdiction of thisthe subsection;Governor.

andSection (4)90. multiplying the product obtained in paragraph (3) of this subsection by 50%.

(e) If funding available from the account is insufficient to pay assistance for all physicians who apply for assistance under this Act, the Division of Insurance may, at its discretion, reduce the payments to pay each eligible physician a pro rata amount in a manner designed to maximize the number of physicians who may receive assistance under this Act.

(f) In addition to any other civil or criminal penalties that may be imposed by law, any physician who fails or refuses HB3653 - 4 - LRB095 09959 KBJ 30171 b to fulfill the terms of the contract required under subsection (c) of this Section is in breach of the contract.

The Division of Insurance may obtain the assistance of the Attorney General to recoup the amount of assistance provided under the contract together with attorney fees and other costs of collection.

(g) The payment amounts and the name of a physician receiving payments under this Act are a public record.

Any other information used by the Division of Insurance in determining the amount of payment to physicians, including all information submitted to the Division of Insurance by a physician under this Act, that is not already a matter of public record is confidential and is not a public record under the Illinois Freedom of Information Act.

Section 15.