Indiana has announced that effective April 1st, 2014 it is increasing the surcharge to medical providers in the Patient Compensation Fund (PCF). Doctors will face a 13% increase while hospitals will see a 21.2% uptick. The patient compensation fund provides $1,000,000 in coverage excess of $250,000 in commercial malpractice insurance. The state also has an absolute cap on damages of $1,250,000 for those that participate in the fund.
The increase appears to be due almost entirely to the exploits of Dr. Mark Weinberger, who’s run from the law got him on Americas Most Wanted and cost the PCF fund $112.5M. The compensation fund balance stood at $198M in the summer of 2010 but had shrunk to $75M at the beginning of 2014.
The increase comes as a bit of a shock to many physicians, who seeing premium decreases of 5-10% from commercial carriers. The lowest physician surcharge rises to $2,100 and the highest is $23,400, depending on specialty. Not pocket change but still a fraction of what many of their peers pay across the border in Illinois.
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