On Friday evening, the Senate Corporation and Transportation Committee heard testimony on SB 213 which corrects the ruling of the Division of Insurance and provides coverage for corporations under the Medical Malpractice Act and gave the bill a "Do Pass". The bill will be heard in the Senate Finance Committee early this next week.

The Division of Insurance has rate filings for corporate coverage outside of the medical malpractice act from the carriers. The rate increase for physician's corporations range from 10% per physician (claims made) to 33% per physician ($200,000/$600/000 occurrence) of the base premium. This is a significant increase! WE MUST ENACT SB 213 to keep corporations under the Medical Malpractice Act and prevent this huge premium increase.

There are those lobbying to kill the legislation by getting it referred to Senate Judiciary Committee. Please call your state senator today and ask them to support SB 213 as well oppose any attempt to refer the bill to Senate Judiciary Committee. The capital switch board is 505-986-4300.

The following will be helpful:

SB 213 - Amending the Medical Practice Act

The Medical Malpractice Act has always recognized that physicians' corporations and business entities can be qualified health care providers based on the licenses held by their individual physicians. But due to corporations themselves not being licensed, some concerns were raised by the Division of Insurance late last Fall about the definition and roles for corporations under the Medical Malpractice Act.

Although they are certified and regulated by the state, medical corporations are not licensed separately by the state to provide health care. HB 188 (and SB 213) was put forth to resolve the issue. The bill would amend the Medical Licensure Act, also referred to as the Medical Practice Act, to provide a procedure for the medical board to license a physician's corporation. The passage of this legislation would accomplish three win-win goals.

1. address and meet the concerns raised by the Division of Insurance regarding the need for physician corporations to be licensed by the state

2. pending litigation could be discontinued, and

3. the current coverage of corporations under the Malpractice Act could continue as it has for the last 34 years.

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