Applications for Medical Malpractice Liability Insurance Subsidy Now Available

News Release

New Jersey Department of
Banking and Insurance
Acting Commissioner Donald Bryan

For Immediate Release: Oct. 25, 2005

For Further Information: Jaimee Gilmartin - (609) 292-5064

Medical Malpractice Liability Insurance Subsidy Payments Are In the Mail

TRENTON – New Jersey Banking and Insurance Acting Commissioner Donald Bryan today announced that the first subsidies are being distributed to eligible medical practitioners pursuant to the Medical Malpractice Liability Insurance Premium Assistance Fund (MMLIPA). The subsidy payments, nearly $11,000 each to 1,200 physicians, implement an important section of the New Jersey Medical Care Access and Responsibility and Patients First Act of 2004. The Act seeks to protect medical access for New Jersey residents in part by offering assistance in the payment of medical
malpractice insurance premiums for physicians in certain high-risk specialties.

Practitioners and healthcare providers in the following medical specialties and subspecialties were eligible to apply for a subsidy from the Fund to be distributed this month:

Obstetric/gynecology (practices otherwise limited to gynecology alone are excluded);
Neurosurgery; and
Diagnostic radiology (Limited to radiologists who read mammograms. The radiologist must be a New Jersey board certified or board eligible radiologist and be certified as meeting the requirements under the Federal Mammography Quality Standards Act and regulations).

“It is important for all medical practitioners to understand that this is the first year of a three-year program,” said Acting Commissioner Bryan. “The MMLIPA subsidy is one of the key components of the medical malpractice insurance reform legislation.” Physicians who were not eligible for the subsidy this year will be included in the review next year and some of those practitioners may be found to be eligible.

This past summer, the Department of Banking and Insurance accepted applications from practitioners who are eligible for the MMLIPA subsidy. The Department worked in consultation with the New Jersey Department of Health and Senior Services in determining which medical specialties and subspecialties were eligible for assistance this year.

While 65 percent of the Fund is dedicated to premium relief, the remainder will benefit hospital charity care, NJ FamilyCare and student loan reimbursement for obstetricians and gynecologists who are committed to practicing in the state.

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