SF2391

Purpose of the Bill

This bill aims to establish a Minnesota Patients Compensation Fund to handle damages from medical malpractice claims. It introduces a structured approach to manage and distribute medical malpractice insurance claims beyond standard policy limits.

Main Provisions

• Patients Compensation Fund: The bill creates a dedicated fund managed by the state to pay for medical malpractice claims that exceed certain thresholds. It specifies how these funds should be managed, governed, and disbursed.

• Patients Compensation Board: A board will be established within the Department of Commerce to oversee the fund. The board will include members from various medical and insurance fields, as well as a public representative. This board is responsible for creating an operation plan and setting membership fees and surcharges required for participation.

• Provider Participation: All health care providers in Minnesota must join the fund. They must pay annual membership fees and premium surcharges to maintain their membership and contribute to the fund's solvency.

• Insurance Requirements: Health care providers are required to maintain a minimum level of medical malpractice insurance, either through an insurer or by qualifying as self-insured. The commissioner of commerce will set these minimum coverage levels.

• Claims Process: The fund will handle claims only when they surpass typical insurance limits. The process ensures that legitimate claims are paid promptly, and payments are made in the order received once funds are available.

Significant Changes to Existing Law

• Establishment of a New Fund: A new governmental structure is introduced to specifically address excess damages from medical malpractice, which did not exist in current Minnesota statutes.

• Mandatory Participation: All healthcare providers are now required to participate, which is a change from the previous system where individual malpractice insurance was independently managed.

• State Audit and Transparency: The fund's activities will be subject to an annual audit by the state auditor, and financial transactions must remain accessible for public inspection, increasing transparency.

Relevant Terms

• Medical malpractice
• Patients Compensation Fund
• Insurance premiums and surcharges
• Health care provider
• State audit
• Transparency
• Patients Compensation Board
• Self-insurance