In six months, West Virginia will tread into more new territory
regarding medical malpractice insurance, as more than 1,000 doctors
will form a physicians mutual insurance company. As a result, the state
will back out of the business of providing malpractice insurance, which
was the Legislature’s goal when we adopted legislation in 2001 and
2003.
The problems surrounding high medical malpractice insurance costs are
complex, and as lawmakers, we knew any solution would have to come in
steps. In 2001, in response to the exit of one of the largest private
insurers, St. Paul, the Legislature adopted a bill allowing doctors to
be covered by the state Board of Risk and Insurance Management. But
that was always considered a stopgap measure – no legislator or state
official wanted to see government become a long-term medical
malpractice insurer.
During the 2003 session, the Legislature enacted sweeping tort reform
measures at the urging of physicians and insurance representatives,
including a limit of $500,000 for most pain and suffering malpractice
awards. The legislation also provides physicians tax credits on high
insurance premiums, and lays the groundwork for the establishment of
the physicians mutual insurance company.
The tax credits will cost an estimated $10 million over two years. But
physicians were also required to contribute financially to help start
the physicians mutual. Doctors were to pay a one-time, $1,000
assessment, although full-time medical school faculty and student
residents, as well as doctors on military service, those who work at
certain clinics and those with special volunteer licenses, are
exempted. Private insurance companies have been assessed $2,500.
The bulk of funding for the physicians mutual is coming from a $24
million loan from the state’s tobacco settlement trust fund. Meanwhile,
the state Board of Risk and Insurance Management is poised to stop
writing policies by July 1, 2004.
In addition, a state-appointed board is currently studying the creation
of a fund to reimburse patients in two cases: those claimants in trauma
care cases who experience economic damages greater than the $500,000
cap, and those unable to collect damages due to the elimination of
joint liability, a past provision in state law that made any defendant
who was at least 25 percent negligent liable for more than their share
of damages.
Unfortunately, it was recently reported that as many as 1,000 state
physicians have yet to pay the $1,000 fee required of them. House
Majority Leader Rick Staton has proposed new legislation which would
revoke the licenses of those physicians who have not paid, as well as
exclude them from the special tort reform protections created by the
2003 legislation. Hopefully, the matter will be resolved before any
additional legislative action is required.
* Finally, recent flooding has certainly taken its toll on our area.
And, while the circumstances were unsettling, I was glad to be able to
interact directly with the West Virginia Office of Emergency Services
during those first days. In their daily briefings, various
responders reported on the status of each county and town affected.
Agencies including the West Virginia State Police, Division of Natural
Resources, State Fire Marshall, National Guard, Division of Highways,
Department of Health and Human Resources, Division of Environmental
Protection, Conservation Authority, Red Cross and Education Department
all work as a team to try to get necessary services in place to respond
to the crisis. As I sat in on these briefings, I was impressed
with the efficiency and compassion these agencies displayed.
Even before the flood waters began receding, our local and state
officials began assessing the damage and pinpointing areas of concern.
Commissioner Jerry Berry, Delegate Ron Thompson, Speaker Bob Kiss and I
all communicated by telephone more times than I can count as we worked
together to find where help was most needed.
As news came in from friends and officials here in Summers County, I
was able to report directly to these agencies some of the areas where
help was still needed. Their professionalism and tireless effort
gave me confidence that West Virginia is on the cutting edge when it
comes to
emergency preparedness.
Residents who suffered loss during this time should contact FEMA by calling 1-800-621-3362 to be eligible for assistance.
I welcome and appreciate your input on these issues, or any other
legislative matter. Please call me at (304)340-3106 or write to
Delegate Virginia Mahan, 215-E, Capitol Complex, Charleston, WV 25305.