Legislation that would create a $12 million fund for medical malpractice initiatives, and would authorize Ohio’s Insurance Director to establish a new Medical Liability Underwriting Association (MLUA) if the market worsens passed the Ohio House of Representatives on January 7, 2004.
House Bill 282, sponsored by Representative Larry Flowers (R-Canal Winchester), is now headed to the Ohio Senate. The legislation would help stabilize the Ohio medical malpractice market.
Ohio Insurance Director Ann Womer Benjamin has twice appeared before the House Insurance Committee to support amendments to HB 282. The Director says the availability and affordability of medical malpractice insurance has been her majority priority since she took office a year ago. She added, “My commitment to keep doctors in Ohio delivering quality health care to Ohioans is unflinching”.
The legislation, as amended, would provide for the transfer of $12 million from the Ohio Joint Underwriting Association (JUA), a 1975 state-created medical malpractice insurance company, which is being terminated by law. It would also give the Director authority to create an MLUA, using the JUA funds, if the current market for medical malpractice insurance would further deteriorate. The MLUA would write primary insurance coverage for doctors unable to find medical liability coverage. The operational aspects of the MLUA would be similar to the JUA.
Since January 6, 2003, Director Womer Benjamin has been working to stabilize the medical malpractice arena, by implementing the requirements of SB 281; by creating a system for reporting medical malpractice lawsuits, outcomes and settlements; rigorously reviewing rate filings; and initiating examinations of the rating and underwriting practices of Ohio's top medical malpractice insurers.