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Rates for the surcharge of the Patient’s Compensation Fund (PCF) will be flat next year, according to a vote of the PCF Oversight Board. By holding rates flat, the payout of claims will be covered, and a 15 percent load for reduction of the unfunded liability (UAL) would be achieved.

The board action was in response to a request from Louisiana Insurance Commissioner Jim Donelon, who asked the board to be even more aggressive in eliminating the UAL; however, eliminating the UAL at a pace that would satisfy the Commissioner would require a large increase every year for four years. The PCF Oversight Board felt that it would not be in the best interest of the fund or the medical community to raise rates that drastically at this time. The PCF raised rates and lowered its UAL substantially last year.

The board felt that by maintaining rates at 2009 levels it would be making an overall 15 percent commitment against the UAL for 2010 and would be placing the surplus well above the statutory responsibility, all other things being equal. Medical providers, including hospitals, are faced with judicial demands that the cap be raised over the current $500,000 limit; however, raising the cap would require additional rate increases to pay for it in the near term. Given the economic and legislative climates that exist, the PCF Board felt that a 15 percent UAL load is as much as the market would bear next year.
 

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Louisiana health care, Louisiana Medical News

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