GO-TIME: Insurance Department Finds Mcare Savings
December 05, 2016
Harrisburg, PA – Insurance Commissioner Teresa Miller today announced her department has reduced administrative costs for the state’s medical liability insurance program by using its staff to perform work previously done by outside actuaries.
“The costs to administer the Mcare Fund are borne by the health care providers it serves. We have decided to bring the annual Mcare assessment calculation in house, and get this done with no additional staff,” Insurance Commissioner Teresa Miller said. “This will save Pennsylvanians money this year, and every year going forward, while still making sure this vital fund is available for patients who need it.”
The Insurance Department administers the Medical Care Availability and Reduction of Error Fund, known as Mcare, which provides payments to patients who have been injured by medical malpractice. Mcare is funded through annual assessments paid by doctors, hospitals and other health care providers based on criteria laid out in the law governing the fund. Although this calculation is based entirely on Mcare’s own data and the statutory formula, Mcare had paid outside actuaries approximately $23,000 each year to perform the calculations to determine the assessment for the coming year.
“Governor Wolf has asked each agency to constantly be looking for ways to save Pennsylvanians money through how we do business, and I am pleased the Insurance Department is able to contribute again to this effort,” Commissioner Miller said.
The Governor’s Office of Transformation, Innovation, Management and Efficiency (GO-TIME) is working to modernize government operations in order to reduce costs and improve services.
GO-TIME works with agencies to share resources, collaborate and engage employees in transformation. During the 15-16 fiscal year, state agencies saved over $156 million.
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