Under IC 4-22-2-24, notice is hereby given that on May 4, 2018, at 10:30 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 1-60 regarding specialty classes for physicians participating in the Indiana Patient's Compensation Fund (PCF). The amendments are intended to make classifying physicians more objective and decrease the number of variances among insurers. The amendments also reclassify several specialties into new classes that reflect changes in the primary professional liability insurance market and add new specialty class codes. Finally, the amendments provide instruction for surcharge payments for physicians working on a part-time basis and for those holding more than one professional liability policy.

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. The Department estimates an overall reduction in physician surcharge owed to the PCF. The proposed amendments providing instruction for surcharge payments for physicians working on a part-time basis is a clarification and will not impose costs on physicians. The amendments related to physicians holding more than one professional liability policy formalize the current practices of the PCF, so there is no additional cost to physicians. 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 the physician specialty classes. Based on this report, the Department determined that amendments to 760 IAC 1-60 are necessary.

Copies of these rules are available on the Department of Insurance's website at:

Copies of these rules and the report issued by Milliman, Inc. are now on file at the Department of Insurance, 311 West Washington Street, Suite 103, Indianapolis, Indiana and are open for public inspection and copying.