Indiana Department of Insurance Announces Rate Drop for Patient’s Compensation Fund for 2019-2020
January 14, 2019by
The Indiana Department of Insurance announced that surcharge rates for the Patient’s Compensation Fund (PCF) will decrease for 2019-2020. The new rates will be effective on July 1, 2019. The surcharge rates for physicians will decrease by 10.9 percent and rates for hospitals will decrease by 12.3 percent, which will result in an approximate $20 million dollar savings overall. This is the first decrease in surcharge rates since 2012. An official Bulletin, Bulletin 247, has been posted on the Department's website.
The PCF is a dedicated fund administered by the Indiana Department of Insurance. It was created in 1975 by the Indiana Legislature as a component of the Indiana Medical Malpractice Act. The fund provides excess compensation for patients who have experienced medical malpractice, in addition to the recovery of compensation from a defendant healthcare provider.
The PCF is funded via a surcharge paid by healthcare providers as part of their professional liability insurance premium. The amount of surcharge paid by a healthcare provider is based upon the risk associated with a healthcare provider’s specialty.