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HEHS-94-105R 1 (1994-02-28)

handle is hein.gao/gaobackmu0001 and id is 1 raw text is: United States General Accounting Office Washington, D.C. 20548 Human Resources Division B-255827 February 28, 1994 The Honorable John Bryant, Chairman 1 Subcommittee on Administrative Law 150899 and Governmental Relations Committee on the Judiciary House of Representatives Dear Mr. Chairman: Public Law 102-501, the Federally Supported Health Centers Assi-stance Act of 1992, nakes Federal Tort Claims Act {FTCA) coverage available to federally funded community and migrant health centers and certain of their health care providers for designated activities during 1993 through 1995.1 In a September 1993 report to the Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, Senate Committee on Appropriations, we estimated the costs and savings associated with full FTCA coverage for all community and migrant health centers compared to purchasing medical malpractice insurance from commercial and other insurers.2 After we issued that report, you asked us to provide you with estimates of the costs and savings associated with federally funded community and migrant health centers obtaining medical malpractice insurance through two other insurance options. Specifically, you asked for estimates of the cost of medical malpractice insurance and any savings for the centers under (1) a risk-purchasing group and (2) a risk-retention group compared to their prior insurance coverage. Through a risk-purchasing group, centers would join together to purchase malpractice insurance from an existing insurance source. As a risk- retention group, the centers would form an insurance company to self-insure against malpractice claims. 'Public Law 102-501, the Federally Supported Health Centers Assistance Act of 1992, was enacted on October 24, 1992. 2Medical Malpractice: Estimated Savings and Costs of Federal Insurance at Health Centers (GAO/HRD-93-130, Sept. 24, 1993). GAO/HEHS-94-105R Medical Malpractice Insurance Options 0 S9 r) Z/gr 8q,'

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