FOR IMMEDIATE RELEASE
February 3, 2010
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Rafferty Calls for Legislation to Create Commission To Oversee Disbursement of MCARE Funds in PA                   

Seeking to keep doctors in Pennsylvania and hold down health care costs, Senator John Rafferty (R-Montgomery) today joined medical representatives at a Harrisburg news conference to push for legislation he is sponsoring that would create an MCARE Commission to oversee the future disbursement of MCARE funds.

Rafferty was joined by Dr. Wayne Sebastianelli, president of the Pennsylvania Orthopaedic Society (POS), who said the legislation is crucial to keeping young surgeons in the state and make health care available for more state residents.

Under Senate Bill 1174, the MCARE Commission will consist of representatives from the physician and hospital communities, the four legislative caucuses, the Administration and a medical student. 

"The major focus of this legislation is to allow practitioners who pay into this fund to control its disbursements and to keep insurance rates at a high level to protect doctors and patients," Rafferty said.  "The MCARE Fund should not be used as a checking account to be tapped by the Administration when state funds are low. Those who pay in should be able to determine how it is used."

Rafferty said his legislation would also ensure that future physicians will have a part in decisions, since they will pay the MCARE liabilities for their entire careers.

"Medical students are the future of health care in Pennsylvania and I believe it is high time they get a voice in the issues that affect them," Rafferty said.  "For too long, doctors and hospitals have been required to pay into the MCARE Fund with no say as to how their money is spent.  For the first time, the physician and hospital representatives of this MCARE Commission will be empowered to review and approve all expenditures from the MCARE Fund. 

The MCARE Fund is a medical liability coverage fund run by the state of Pennsylvania.  Currently, physicians are required to have $500,000 in primary liability coverage plus $500,000 in excess coverage above that. They can get the first $500,000 layer either in the private market or through the Joint Underwriting Association (JUA).  They get the second layer from the MCARE Fund.

The MCARE Abatement Program subsidizes 100 percent of the MCARE surcharge for high-risk specialty surgeons and 50 percent of the MCARE surcharge for other healthcare providers. The program is the keystone of the medical liability reforms enacted during 2002 and 2003.

The program was renewed annually three times.  In late December 2007, however, it became evident that the General Assembly could not agree on how to allocate the MCARE Fund’s surplus, and the MCARE Abatement Program was not renewed by the year-end deadline.

"Today, our physicians face another cycle in which private market premiums are set to dramatically increase," Rafferty said.  "We must bring stability and certainty to Pennsylvania’s physician community, so they can do what they do best; serve their patients."

CONTACT:

MARK MEYER
(717) 787-1398