VIRGINIA BIRTH FUND ON WATCH:

An actuarial review of the Virginia Birth-Related Neurological Injury Compensation Fund found that the program’s ability to meet future claims payments has deteriorated. However, the State Corporation Commission (SCC) says the fund is still capable of paying claims and should be able to do so for approximately 14 years. An actuarial analysis of the fund, conducted by an independent consultant for the SCC’s Bureau of Insurance, determined that the program faces a projected deficit of $80.4 million as of Dec. 31, 2003, which is expected to reach $148.3 million by Dec. 31, 2005. The rising deficit is based to a large extent on projected increases in liability for future claims payments resulting from the passage of a new law, effective July 1, 2003, that may encourage more potential claimants to apply to the program. State officials have said that the actual impact is uncertain and will only be measurable after several years. The Virginia Birth-Related Neurological Injury Compensation Program, created 16 years ago by the General Assembly, cares for children who incur a lifetime brain or spinal cord injury resulting from an accident that occurs during birth. It was formed as an alternative means of compensation rather than malpractice lawsuits against doctors or hospitals and their liability insurance carriers. Claims against the fund are reviewed and awarded by the Virginia Workers’ Compensation Commission. All licensed physicians, participating hospitals, and liability insurance carriers in Virginia contribute annually to the fund.

Topics Virginia