Kampf Insurance Reform Bill Passes House
HARRISBURG-- Legislation sponsored by Rep. Warren Kampf (R-Montgomery/Chester) to help physicians more easily acquire malpractice insurance has passed the House.
House Bill 159 would amend the state insurance law to allow reciprocal medical malpractice exchanges to convert into a stock-holding insurance company.
When medical malpractice insurance was hard to find more than a decade ago, many doctors came together to form reciprocal medical malpractice exchanges so they could self-insure. They paid premiums, took shared risk, and paid out claims.
Kampf’s legislation would allow these reciprocal medical malpractice exchanges to become stock-holding companies with stockholders that participate in the gains and losses of the corporation, but also bear the losses of the company.
“A reciprocal that chooses to convert would benefit from enhanced financial stability and flexibility,” Kampf said. “It will give the reorganized company maximum access to capital and debt markets to strengthen its operation, improve risk-capital ratios, finance future company growth, and more competitively operate in the modernized financial/insurance market.”
Current law prevents these exchanges from becoming regular insurance companies without this legislation.
“This is a way to strengthen these medical malpractice exchanges, which will give doctors greater access to malpractice insurance,” Kampf said. “This encourages physicians to continue practicing in the Commonwealth, and that benefits all Pennsylvanians.”
Presently, there are eight reciprocal insurance exchanges within the Commonwealth. Most operate to provide medical liability coverage to their members.
The bill now moves to the Senate.
Representative Warren Kampf
157th District
Pennsylvania House of Representatives
Media Contact: David Foster
RepKampf.com / Facebook.com/RepKampf