MCARE ASSESSMENT FOR 2022 REDUCED TO 12 PERCENT
The Insurance Department’s Medical Care Availability and Reduction of Error Fund (MCARE) published notice in the Pennsylvania Bulletin to all basic insurance coverage insurers and self-insured participating health care providers that the annual assessment for calendar year 2022 will be 12% applied to the prevailing primary premium for each participating health care provider. The annual assessment for 2021was 19%.
The Fund pays claims against participating health care providers and eligible entities for losses or damages awarded in medical professional liability actions in excess of basic insurance coverage (“primary coverage”) provided by primary professional liability insurance companies (“primary carriers”) or self-insurers. It was created to reduce the overall costs of med mal insurance.
The assessment is based on the prevailing primary premium for each participating health care provider and is required to produce an amount sufficient to do all of the following: (i) Reimburse the fund for the payment of reported claims which became final during the preceding claims period. (ii) Pay expenses of the fund incurred during the preceding claims period. (iii) Pay principal and interest on moneys transferred into the fund. (iv) Provide a reserve of 10% of the sum of subparagraphs (i), (ii) and (iii).
Participation in MCARE is mandatory for hospitals, nursing homes, birth centers, primary health centers, physicians, podiatrists and certified nurse midwives licensed by the Commonwealth and conducting 50% or more of their health care business within this Commonwealth. MCARE Fund participating HCPs will be required in 2021 to obtain primary coverage in the amount of $500,000 per occurrence and $1,500,000 per annual aggregate. Hospitals must obtain primary coverage in the amount of $500,000 per occurrence and $2,500,000 per annual aggregate. Mcare provides participating Health Care Providers coverage of $500,000 per occurrence and $1,500,000 per annual aggregate in excess of the primary coverage.