Calling the ongoing escalation in medical malpractice insurance rates “a threat to doctors and their patients,” Republican Ohio Gov. Bob Taft signed House Bill 282 authorizing establishment of a new Medical Liability Underwriting Association. The legislation authorizes the insurance director to establish a new Medical Liability Underwriting Association (MLUA) if the market worsens. The MLUA would write primary insurance coverage for doctors unable to find medical liability coverage.
The law provides for the transfer of $12 million from the Ohio Joint Underwriting Association (JUA), a 1975 statutorily-created medical malpractice insurance company, which is being terminated by law. The money could be used to fund the MLUA or other initiatives decided by the General Assembly.
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