PID Seeks Bidders for Med Mal Claims Administration

The Pennsylvania Insurance Department (PID) is seeking bidders to provide claims administration services to the Pennsylvania Medical Liability Catastrophic Loss Fund (CAT Fund) and the Medical Care Availability and Reduction of Error Fund (MCARE Fund).

The bids are part of a first step towards privatizing the CAT Fund, as mandated the medical-malpractice insurance legislation that Gov. Mark Schweiker signed into law in March. The MCARE Fund was set up at the same time, and part of The Act requires that the PID contract out for medical-malpractice claims administration, which is currently performed by the CAT Fund.

Insurance Commissioner Diane Koken stated that, “We are very pleased to begin this bid process as a first step in the privatization of the CAT Fund. We want contractors that will be timely in their claims investigation and thorough in their claims evaluation.”

“Proposals are due by July 15, with selections to be made early October. Procurement guidelines established by Act 57 of 1998 are being followed. A mandatory pre-proposal conference will be held on June 24. This will provide potential bidders the chance to clarify any points in the RFP,” said the PID’s announcement.