The Injured Patients and Families Compensation Fund (Fund) Board approved a 34 percent decrease in Fund fees for the 2015-2016 fiscal year on Wednesday. This is the third time in as many years that the Board has approved a decrease in Fund fees.
The Board’s decision to decrease fees was based on the recommendation of its actuaries, which noted—among other considerations—a better-than-expected return on investments and the release of previously held claims. Fund fees decreased 10 percent for 2014-2015 and 5 percent for 2013-2014. Fee notices reflecting the new decrease will be mailed to physicians and other Fund participants in mid-2015.
The Fund, which was created by statute in 1975, is a trust that is set up to pay medical negligence claims that exceed physicians’ primary layer of medical liability insurance. In 2011, the state returned $200 million, plus lost earnings and interest to the Fund, following the Wisconsin Medical Society’s successful lawsuit challenging the state’s raid on the Fund in 2007.
In other business by the Board, the fees for physicians and surgeons insured through the Wisconsin Health Care Liability Insurance Plan (WHCLIP) will not change in 2015-2016, and there was no change in fees for hospital professional liability and hospital liability coverage.
WHCLIP was created by statute in 1975 as an insurer of last resort to provide the primary level of medical liability insurance to Wisconsin health care providers. WCHLIP is managed by an outside manager with oversight by the Office of the Commissioner of Insurance.
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