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Sunday, April 28, 2013

nd. Courts - "Lawsuit against malpractice program certified class action"

From Tim Evans' long report in the Indianapolis Star April 26th:

A state medical malpractice insurance program has accumulated more money than it will ever need to pay claims and should return more than $30 million to the health-care providers who’ve paid into the fund since 2000, according to a lawsuit in Marion Superior Court.

Superior Judge Michael Keele this week granted class certification and appointed the Indianapolis law firms Cohen & Malad, LLP and Coots, Henke and Wheeler as counsel in the civil lawsuit filed against the Commissioner of the Indiana Department of Insurance and the Indiana Residual Malpractice Insurance Authority.

The certification means the court finds a class action case is the appropriate way to move forward with the the lawsuit.

The state Department of Insurance oversees the IRMIA, which provides malpractice coverage for health-care providers who cannot obtain insurance through other sources. The program is run by private sector insurers and operates with no government or taxpayer funds.

“The money is just sitting there gathering dust,” said Irwin B. Levin, the lead attorney on the case. “According to their own numbers, there is $30 (million) to $40 million that they will never have to use, and they won’t give it back.”

Levin said the money cannot be spent for anything else. * * *

“These ‘undistributed funds’ are monies paid by the health-care providers for insurance coverage that will never be used for anything. In essence, IRMIA is holding over $19 million in funds paid by health-care providers that, by its own accounting, IRMIA will never have a use for, and funds that should be refunded to the health-care providers,” the lawsuit says.

Posted by Marcia Oddi on April 28, 2013 01:27 PM
Posted to Indiana Courts