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Medical malpractice reform-review panel. |
05LSO-0019.C2 |
FISCAL NOTE
This bill contains an appropriation of $500,000 from the GENERAL FUND to the MEDICAL REVIEW ACCOUNT, effective immediately.
This bill contains an appropriation of $650,000 from the MEDICAL REVIEW ACCOUNT.
This bill contains an authorization of 3 Full-Time positions.
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FY 2007 |
FY 2008 |
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NON-ADMINISTRATIVE IMPACT |
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Anticipated Revenue Increase: |
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MEDICAL REVIEW ACCOUNT (MRA) |
887,280 |
760,000 |
760,000 |
Source of Revenue Increase: The revenue increase to the Medical Review Account comes from two sources:
(1) a transfer from the General Fund of $500,000 effective upon passage and
(2) annual assessment to licensed physicians, companies admitted to sell and writing medical malpractice insurance, and attorneys admitted to the Wyoming Bar.
Assumptions:
For FY06, the assessments are calculated as follows:
(1) $100 each for 2,447 licensed physicians (as of January 13, 2005), or $244,700
(2) $85,000 collected in from casualty companies licensed in Wyoming with direct written premium for medical malpractice insurance (In 2003, this totaled 22, and three of those 22 companies wrote 90 percent of the premiums.)
(3) $20 each for 2,879 attorneys admitted to the Wyoming Bar, or $57,580
For FY07 and beyond, the magnitude of the assessments will be determined annually. For purposes of illustration, assuming $760,000 is needed for annual operations (the approximate total requested by involved agencies) the following breakout of assessments would exist:
(1) 25 percent ($190,000) generated by assessing $77.65 per licensed physician
(2) 25 percent ($190,000) generated by assessing admitted insurers writing medical malpractice insurance
(3) 50 percent ($380,000) generated by assessing $131.99 per attorney admitted to the Wyoming Bar
(This analysis does not incorporate the $100 filing fee deposited in the medical review panel account prior to consideration of a claim.)
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In addition, this bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill modifies the Department of Health's budget and current personnel authorizations.
The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:
Department of Health
Office of the Attorney General
Department of Insurance
Prepared by: Don Richards, LSO Phone: 777-7881
(Information provided by: Brent Sherard and Jeff Urry, Department of Health, phone: 777-6340 / 6780; Matthew Petry, Attorney General's Office, phone: 777-7840; Carole Shotwell, Board of Medicine, phone: 778-7053; Stephanie Bryant, Insurance Department, phone: 777-6896; and Mary Guthrie, State Bar, phone: 632-9091.)