SB 257 - This act creates the Missouri Patients' Compensation Fund. This fund provides excess medical malpractice coverage to healthcare providers who participate in the fund. Health care providers must carry primary medical malpractice coverage with another insurer. The amount of the primary coverage will be established by the Director of the Department of Insurance by rule. When determining the minimum level of medical malpractice insurance, the Director shall consider the health care provider's area of practice, past risk experience, or any other relevant factors. The fund will be administered by a Patients' Compensation Board housed within the Department of Insurance. The board will consist of the Director of the Department of Insurance and nine other members representing health care providers, insurance companies, trial attorneys and the public. All health care providers will be required to pay annual membership fees. In addition to these fees, the director will levy a premium surcharge on each health care provider's medical malpractice insurance policy. The surcharge will be collected from the insurance companies when they receive the medical malpractice insurance premiums from the health care providers.

A person may recover from the fund if the person names the fund as a party in the lawsuit. The fund will only pay moneys to the aggrieved party if his or her damages exceed the health care provider's primary level of coverage. The fund may appear as a party in the action. The fund may retain counsel to defend itself. Insurers must provide an adequate defense of the fund in any action and must act in a fiduciary relationship with respect to any claim affecting the fund.

NOTICE OF PREMIUM INCREASES (Section 383.324) - This act also prohibits insurers who issue medical malpractice policies from increasing premiums without providing 90 days written notice.
STEPHEN WITTE