Effective July 1, 2019, all health care providers electing to participate in the Indiana Patient’s Compensation Fund must maintain insurance limits of $500,000/$1,500,000, an increase from the prior $400,000/$1,200,000. For PCF participants, the PCF will be responsible for amounts above $500,000, with a $1,800,000 ultimate cap on damages.
If you are a PracticeProtection insured with July 1 falling during your policy period, the new $500,000/$1,500,000 limit will be automatically applied and endorsed onto your policy with no change in premium.
For reference, we have copied the Indiana Insurance Department bulletin below.
Please call us if you have any questions.
This reminder is directed to all health care providers electing to be qualified under Indiana’s Medical Malpractice Act (IC 34-18-1-1 et seq.) and to insurers that provide coverage to those health care providers.
In 2016, the Indiana Legislature enacted significant changes to Indiana’s Medical Malpractice Act (the “Act”), raising health care provider per-occurrence and annual aggregate limits (IC 34-18-4-1 et seq.) and increasing total amounts recoverable by patients (IC 34-18-14-3 et seq.).
Health care providers are required to maintain the new limits on July 1, 2019, regardless of their policy renewal date. Therefore, insurance policies that are already in effect on July 1, 2019, should be endorsed to increase the limits of liability as of July 1. Self-insured hospitals should observe the new limits and take appropriate steps. Health care providers establishing financial responsibility by means of cash or a surety bond, as provided by 760 IAC 1-21-3(a)(2), must observe the new limits as of July 1 but may increase the amount of cash or bond at their first surcharge payment date on or after July 1, 2019. A health care provider’s limit will be established by the date of the occurrence, regardless of the policy term or coverage form. Any policy, self-insured hospital coverage, or other financial responsibility via 760 IAC 1-21-3, must satisfy the greater annual aggregate before PCF coverage will apply if any portion of the financial responsibility year includes a date on or after July 1, 2019.