How the 2021-22 Proposed NYS Executive Budget Impacts Medical Liability and Healthcare in New York

MLMIC’s newest edition of The Albany Report helps policyholders understand the potential impact of New York State’s (NYS) proposed 2021-22 Executive Budget on the healthcare provider community.

The February 2021 issue details the following four items that can affect policyholders’ practice in NYS. The Executive Budget:

• Contains a substantial modification of the Physician’s Excess Medical Malpractice Program, commonly known as the “Section 18 Program.” The Governor proposes to require Section 18-eligible physicians and dentists to pay half of the premium for excess professional liability coverage, to be paid by these physicians and dentists in 12 monthly installment payments, or in another manner as agreed to by the physician or dentist.

MLMIC will join our medical partner societies in advocating for restoring the full funding for the program so that the Section 18 excess insurance policyholders do not have to bear any of the financial burden for this program;

• Includes a one-year extension of the Department of Financial Services Superintendent’s authority to “set and establish” primary and excess rates for physicians’ and surgeons’ professional liability insurance.

• Supports the NYS Medical Indemnity Fund; and

• Proposes modifications to the New York State Office of Professional Misconduct (OPMC) that would dilute, and in some cases eliminate, certain provisions of the current law that provide needed and crucial due process protections for physicians faced with a complaint filed at the OPMC.

The NYS Legislature will conduct public hearings on each portion of the Executive Budget through February 23. In March, the Assembly and Senate will pass their own versions of the budget, followed by negotiations between the two houses and the Governor, in order to enact a complete State budget by the deadline of April 1.

For over 40 years, MLMIC has been committed to meeting the liability insurance needs of physicians, dentists, hospitals and other healthcare professionals. As a core part of its mission, MLMIC is, and always has been, a strong advocate for the healthcare community and has effectively lobbied for legislative and regulatory reform to address those issues that continue to impact healthcare professionals. The Albany Report is intended to enhance this advocacy.