Under
IC 4-22-2-24, notice is hereby given that on May 4, 2018, at 10:00 a.m., at the Department of Insurance, 311 West Washington Street, Suite 103, Indianapolis, Indiana, the Department of Insurance will hold a public hearing on a proposed rule to amend
760 IAC 1-21 to adjust surcharge rates for certain health care providers participating in the Indiana Patient's Compensation Fund (PCF), as well as update the rule so that it conforms with changes to
IC 34-18-1, et seq. The proposed rule reduces surcharge rates for nursing homes. The proposed rule also adds anesthesiologist assistants to the definition of "independent ancillary provider", and includes the appropriate surcharge rate for these providers. Finally, the proposed rule adds that health care providers may use a policy of insurance issued by a captive insurer, as defined in
IC 27-1-2-2.3, as proof of financial responsibility required for participation in the PCF.
Insurers, risk retention groups, and surplus lines producers remitting surcharge on behalf of health care providers electing to participate in the PCF will incur certain administrative costs as a result of the proposed rule. These costs are expected to be minimal. Nursing homes will see reduced surcharge rates. To participate in the PCF, anesthesiologist assistants will be required to remit the appropriate surcharge, along with proof of financial responsibility set forth in
760 IAC 1-21-2.5. These requirements and costs associated with the proposed rule are necessary. The proposed rule is intended to address the statutory requirement set forth in
IC 34-18-5-2 that the amount of the surcharge must be adequate for the payment of claims and expenses from the PCF and may not exceed the actuarial risk posed to the PCF. Milliman, Inc., the PCF's actuarial firm, issued a report to the PCF with respect to changes to nursing home surcharge rates. Based on this report, the Department determined that amendments to
760 IAC 1-21 are necessary.