1. Injured patients and families compensation Fund Wisconsin Office of the Commissioner of Insurance
June 1, 2018

2. INJURED PATIENTS AND FAMILIES COMPENSATION FUND
The Fund was created by the Legislature in 1975
Provides medical malpractice coverage in excess of primary limits
Current limits are $1,000,000/3,000,000
Evidence of primary coverage required to be submitted by primary insurance carrier
Participation in the Fund is mandatory for physicians, CRNAs, hospitals, Ambulatory Surgery Centers, and corporate entities providing the medical services of physicians and/or CRNAs

3. INJURED PATIENTS AND FAMILIES COMPENSATION FUND
Governance of the Fund is vested with a 13 member Board of Governors. The Commissioner of Insurance is the Chair of the Board. Administrative staff is provided by OCI
The Board is assisted by various committees
Legal Committee
Claims Committee
Finance/Investment/Audit Committee
Actuarial and Underwriting Committee
Risk Management Committee

4. Fund Administration
The Office of the Commissioner of Insurance provides the administrative staff to perform the day to day operations of the Fund
Full time in office staff of 7
Contracts with outside vendors for: Actuarial, Claims Handling, Risk Management and Investment Performance Analysis

5. THE BOARD of Governors
The Board of Governors takes a very active roll in the Fund; it monitors the medical malpractice environment and is proactive in addressing changes in the practice of medicine. As issues arise, the Board will establish special committees to identify any possible effects to the Fund
Since the inception of the Fund, there have been multiple changes affecting the Fund, both environmental and legislative. The Board has strived to address these timely and effectively

6. CURRENT STATE OF MEDICAL MALPRACTICE IN WI
Factors which have contributed to a favorable medical malpractice environment include:
Creation of the Fund
Mandatory primary insurance coverage
Pro-active risk management programs performed by hospitals and health care organizations
In addition, Wisconsin, as compared to some states, does not allow for punitive damages in medical malpractice

7. Chapter 655
Governing statute for the Injured Patients and Families Compensation Fund
Defines provider
Mandatory participation
Physician (MD, DO) and CRNA for whom Wisconsin is the principal place of practice
More than 240 hours in a fiscal year

8. Chapter 655 Optional Participation
Practicing fewer than 241 hours in a fiscal year
May elect to participate in the Fund, but only applies to claims arising out of practice in Wisconsin

9. Chapter 655
Exemptions
Not principal place of practice, less than 50% of income or fewer than 240 hours in a fiscal year
Public employees, facilities and volunteers
State, county, municipal or federal employee or a contractor covered under the federal tort claims act
Facilities operated by any governmental agency
Volunteer Agents of the state

10. Fees and Rate Setting
Fees are established annually by the Board based upon a recommendation from the Actuarial Committee and information provided by the outside actuaries
There have been decreases in the Fund fee assessments for the last five consecutive years

11. Assessments
Assessments are triggered when a certificate of insurance is received in the Fund computer system
Assessments are based on the classification and ISO Code provided on the certificate of insurance
Invoices are sent annually in the middle of June and due by July 15 of each fiscal year
Approximately 80% of assessments are paid for the entire year
Classification changes will trigger an increase or decrease in the assessment

12. Primary Insurance
Primary insurance coverage must be purchased by an authorized insurer or approved risk retention group
22 Insurance Companies
2 Risk Retention Groups (RRG)

13. Claims
Primary coverage is $1 million per incident, $3 million aggregate
Fund coverage begins after primary limit is met
Wisconsin is the only state that pays unlimited economic damages for claims

14. QUESTIONS

15. Internet: www.oci.wi.gov
CONTACTING THE FUND
Internet:
Terri Carlson