Insurance Commissioner: PCF Surcharge Too Low on Louisiana Medical News

Insurance Commissioner: PCF Surcharge Too Low

By: LHA's Impact Weekly Newsletter

PCF Surcharge Rates Challenged by Insurance Commissioner

Commissioner of Insurance Jim Donelon has requested that the Louisiana Patient’s Compensation Oversight Board submit a rate filing commensurate with his five-year plan to eliminate the unfunded liability of the Patient’s Compensation Fund (PCF).

In a letter to the PCF, the commissioner stated that the 2010 surcharge rates must have an additional surcharge of 25 percent to address the current unfunded liabilities of the PCF, which would address the remaining four years of his five-year plan. The plan is not required by statute nor accepted by the board, and if implemented, will cause great hardship to hospitals and physicians throughout the state.

The current rates, which provide for a 15 percent load to address the unfunded liability, are enough at this time, and the PCF is in no danger of failing to pay its judgments and settlements. During these trying and uncertain economic times, requiring an additional $42.5 million from the provider community would unduly burden doctors and hospitals.

The question of whether the commissioner can force rates upon the providers and how much is enough under the law may have to be decided in court.

(Clark Cossé, ccosse@lhaonline.org)