SENATE CONCURRENT RESOLUTION NO. 14

(By Senators Minard, Kessler, Sharpe, Prezioso, Wooton, Fanning, Deem, Burnette, Facemyer, Snyder, Chafin and Craigo)

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[Originating in the Committee on Banking and Insurance;

reported March 14, 2001.]

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Requesting the Joint Committee on Government and Finance to conduct a study of West Virginia's medical malpractice insurance rate crisis and of the causes for the spiking of the costs for premiums for such insurance.

Whereas, Medical providers in the State of West Virginia are becoming subject to ever-increasing premiums being charged by malpractice insurance carriers; and
Whereas, The Legislature has been presented various materials demonstrating that these ever-increasing malpractice insurance costs are greatly outpacing the growth of such rates in the states surrounding West Virginia; and
Whereas, The potential result of this disparity with other states in medical malpractice insurance rates could result in an exodus from the State of West Virginia of some of our most qualified and dedicated physicians; and
Whereas, Any loss of West Virginia's physicians could also result in the loss to West Virginia communities of hospital units and branch offices, because available, qualified replacements for the lost physicians could not be recruited because West Virginia has high malpractice insurance rates; and
Whereas, The various hospital specialty units, medical partnership branch offices and solo practitioners, in turn, directly and indirectly employ many West Virginians and the livelihoods of the families of each of these employees could be jeopardized by those difficult decisions these medical providers are being forced to make in the face of rising malpractice insurance rates; and
Whereas, Records on file with the West Virginia Insurance Commission suggest that only a very limited number of commercial insurance carriers are willing to write medical malpractice insurance coverage in the State of West Virginia; and
Whereas, The pool of medical providers within the state may be too small to set rates on a territorial basis, with the result that a small, rural medical provider may be forced to accept and pay the same rates for similar coverage as a medical provider with a higher income and a higher risk in a larger city; and
Whereas, Several insurance carrier insolvencies have occurred in recent years. This fact, together with the guarantee fund assessment and limitations imposed on the remaining carriers, has also had an adverse, but as yet not accurately determined, impact on rates; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is requested to review, examine and study the medical malpractice insurance rate crisis presently facing the providers and recipients of medical care in the State of West Virginia; and be it
Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2002, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.