This bill, Minnesota Senate File No. 2391, establishes the Minnesota Patients Compensation Fund to help cover damages awarded in medical malpractice cases beyond a certain threshold. Below is a summary of its key provisions:

Key Provisions:

1. Creation of the Minnesota Patients Compensation Fund (Sec. 62X.02)

   • A special fund in the state treasury to pay excess claims in medical malpractice cases.
   • Funded through membership fees and premium surcharges from participating healthcare providers.
   • Liable only for claims against licensed providers and not for intentional crimes or punitive damages.

2. Establishment of the Patients Compensation Board (Sec. 62X.03)

   • A governing board within the Department of Commerce to manage the fund.
   • Consists of 10 members, including medical professionals, insurance representatives, attorneys, and a public member.
   • Tasks include developing operational procedures and approving settlements.

3. Provider Participation Requirements (Sec. 62X.04)

   • Mandatory participation for healthcare providers.
   • Providers must pay membership fees and premium surcharges to be covered by the fund.

4. Funding and Payment Structure (Sec. 62X.05)

   • Annual membership fees and premium surcharges set by the board and approved by the commissioner.
   • Insurers must collect and remit premium surcharges to the fund.
   • Self-insured healthcare providers are subject to equivalent surcharges.

5. Financial Transparency and Oversight (Sec. 62X.06)

   • Public access to books and records, except confidential claim information.
   • Annual audit by the State Auditor with reports submitted to the Department of Commerce.

6. Medical Malpractice Insurance Requirements (Sec. 62X.07)

   • Healthcare providers must maintain malpractice insurance or qualify as self-insured.
   • The Commissioner of Commerce sets minimum liability limits for malpractice insurance policies.
   • Insurers and self-insured providers must file proof of insurance with the commissioner.

7. Claims Process and Fund Obligations (Sec. 62X.08)

   • Claimants must name the fund in lawsuits to recover from it.
   • The fund can defend itself and must approve settlements that could impact its finances.
   • Payments are made promptly, but if the fund lacks sufficient money, claims are paid in order the following year.
   • The board can sue insurers, self-insured entities, or providers for breaches of fiduciary responsibility.

8. Insurance Policy Changes Notification (Sec. 62X.09)

   • Insurers must provide 90-day notice before increasing premiums, deductibles, or making material changes to malpractice policies.

Purpose

This bill aims to stabilize medical malpractice liability for healthcare providers by creating a state-managed fund that pays high-value claims exceeding standard insurance limits. It ensures financial solvency, fairness, efficiency, and regulatory oversight.