|Date Requested:April 01, 2005
Time Requested:10:17 AM
| FUND(S) |
2360; 2361; 2362; 2363; 2367; 2368
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| The Engrossed version of this legislation proposes that upon agreement with the State Board of Risk and Insurance Management (BRIM), the medical schools may participate in a self-insurance retention program in conjunction with BRIM. Additionally, in administering the self-insurance retention (SIR)program, the medical schools may manage/settle its own medical professional liability insurance claims.
The premiums, for medical malpractice coverage only, for WVU, Marshall, and WVSOM for FY 2006 are: $10,800,237; $5,012,819; and $229,674 respectively. This premium is for occurrence coverage and funds all medical malpractice claims for FY 2006. Consequently, the maximum anticipated fiscal impact for FY 2006 to BRIM is the loss of the total revenue that would have been received from all three institutions, or $16,042,730.
However, in a SIR, anticipating that the medical schools will be fiscally responsible for a portion, for example, the first $250,000 of each claim, BRIM's total fiscal impact chould reduce by approximately 55% to 65% dependent upon the actuarial study and the mechanics of the final SIR program. This fiscal note reflects a 55% reduction.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||8,823,502|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||8,823,502|
3. Explanation of above estimates (including long-range effect):