Commissioner of Insurance Jim Donelon is sponsoring SB 586, by Sen. Martiny (R-Kenner), to continue his efforts to raise rates and require personal (in solido) liability of physicians and hospitals for the debts of the Patient's Compensation Fund (PCF).

SB 586 would also allow the commissioner to appoint members to the PCF Oversight Board, which is currently made up of gubernatorial appointments submitted by the LHA and the Louisiana State Medical Society, and mandate that another $300 million be added to the $600 million that the PCF has in reserve by 2016.

If this legislation passes, rates will go up dramatically, and the PCF will be forced to adhere to insurance principles. The LHA opposes the commissioner's bill, and in its place, supports HB 394 by Rep. Mills (D-Breaux Bridge) and SB 514 By Sen Murray (D-New Orleans), which will remove the Commissioner of Insurance as PCF regulator and clarify the PCF rate formula, so that the PCF can continue to act as a well-financed, revolving fund and not become an insurance company.
 
If  the commissioner is successful, the Medical Malpractice Act and its protections will be in serious jeopardy.