SUMMARY

This bill clarifies that a physician, hospital or physician's employer that does not purchase insurance is considered self- insured for the purposes of the Rural Medical Access Program.

The bill limits assessments to physicians licensed and practicing medicine in this State and removes the requirement that the Superintendent of Insurance certify that all physicians, hospitals and physician's employers have paid the assessment.

The bill removes a provision that the assessment be distributed on a prorated basis. The assessment is made as a percentage of premium. The maximum assessment rate of 1.25% is the current rate. That rate will be reduced to .75% effective July 1, 2006. The assessment rate will be adjusted automatically based upon the level of excess funds that have accumulated. The bill also provides that the program fund balance may be used to pay assistance to qualified eligible physicians in prior years for which there were insufficient funds. If all prior years' eligible qualified physicians have received assistance, any excess funds must be carried forward to subsequent plan years as part of the program fund balance.

The bill requires, rather than permits, an insurer to invest collected assessments.

The bill increases the maximum assistance level to $15,000 from $10,000.