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Home > Insurance Division > Doctors' Corner > MMLIPA Fund Application > Questions and Answers on the MMLIPA Fund
Questions and Answers on the MMLIPA Fund
What was the Medical Malpractice Liability Insurance Premium Assistance Fund?
The New Jersey Medical Care Access and Responsibility and Patients First Act (Act), P.L. 2004, c.17 was signed into law on June 7, 2004. Monies collected under this Act were used for the Medical Malpractice Liability Insurance Premium Assistance Fund; the Health Care Subsidy Fund; a student loan reimbursement program for obstetrician/gynecologists; and an annual allocation to the Division of Medical Assistance and Health Services. The Medical Malpractice Liability Insurance Premium Assistance Fund (Fund) was administered by the Department of Banking and Insurance (see N.J.S.A. 17:30D-28 et seq.). This Fund was created for the purpose of preserving access to quality medical care for New Jersey patients by providing direct relief towards the payment of medical malpractice liability insurance premiums to certain health care providers in New Jersey, who were finding it difficult to remain in practice due to escalating medical malpractice liability insurance premium rates. The amount of this Fund was projected to be $17 million per year. This was a three-year program covering calendar years 2004, 2005 and 2006.  The subsidies for each of those years were actually paid in the following year.  Thus, the subsidies for 2004 were paid to qualifying eligible healthcare providers in 2005.
 
Who paid into this Fund?

The Fund was comprised of the following revenue:

    • An annual surcharge of $3 per employee for all employers who were subject to the New Jersey "unemployment compensation law," collected by the comptroller for the New Jersey Unemployment Compensation Fund and paid over to the State Treasurer for deposit in the Fund annually, as provided by the Commissioner of the Department of Labor and Workforce Development which surcharge may, at the option of the employer, have been treated as a payroll deduction to each covered employee;
    • An annual charge of $75 imposed by the State Board of Medical Examiners on every physician and podiatrist licensed by the Board pursuant to the provisions of R.S.45:9-1 et seq., collected by the Board and remitted to the State Treasurer for deposit into the Fund;
    • An annual charge of $75 imposed by the State Board of Chiropractic Examiners on every chiropractor licensed by the Board pursuant to the provisions of P.L.1989, c. 153 (C.45:9-41.17 et seq.), collected by the Board and remitted to the State Treasurer for deposit into the Fund;
    • An annual charge of $75 imposed by the New Jersey State Board of Dentistry on every dentist licensed pursuant to the provisions of R.S.45:6-1 et seq., collected by the Board and remitted to the State Treasurer for deposit into the Fund;
    • An annual charge of $75 imposed by the New Jersey State Board of Optometrists on every optometrist licensed by the Board pursuant to the provisions of R.S.45:12-1 et seq., collected by the Board and remitted to the State Treasurer for deposit into the Fund; and
    • An annual fee of $75 assessed by the State Treasurer and payable by each person licensed to practice law in this State, for deposit into the Fund.
Licensed health care professionals with questions about their assessment may contact the Division of Consumer Affairs:

Telephone number within New Jersey: 1-888-656-6225 (Press Option 4)
Telephone number outside of New Jersey: 1-973-424-8150 (Press Option 4)
E-mail: mmlipa@dca.lps.state.nj.us
Web site: NJ Division of Consumer Affairs
Attorneys with questions about their assessment may contact the Administrative Office of the Courts:

Telephone: 609-826-4400
E-mail: www.state.nj.us/treasury/taxation/contactus_tyttaxa.html
Web site: NJ Department of Treasury (PDF)

Employers with questions about their assessment may contact the Department of Labor and Workforce Development:

Telephone: (609) 292-7397
E-mail: Assessments@dol.state.nj.us
Web site: NJ Department of Labor and Workforce Development
 
Who is a health care provider?
A health care provider, according to the Act, was a physician, podiatrist, dentist and chiropractor licensed pursuant to the provisions of Title 45 of the Revised Statutes, a nurse licensed pursuant to the provisions of Title 45 of the Revised Statutes who was employed by a licensed hospital, long-term care facility or assisted living facility in this State and any person who purchased professional liability insurance on behalf of or for a practitioner, including professional liability insurance protection which was provided for hospital employed physicians through hospital funding supplemented by purchased commercial insurance coverage.
 
Who is a practitioner?
Pursuant to the Act, a practitioner was a physician, podiatrist, dentist and chiropractor and a nurse employed by a licensed hospital, long-term care facility or assisted living facility in this State.
 
What specialties or subspecialties were eligible for this assistance?
The Commissioner of Banking and Insurance made an annual determination of eligible specialties or subspecialties based upon (a) a specialty or subspecialty's level of premium rate increase and (b) the insufficient number of practitioners practicing in that specialty or subspecialty which threatened access to care for New Jersey patients.
 
When was the determination of eligible specialties and subspecialties for the 2006 premium subsidy made?
The Commissioner's determination for the 2006 premium subsidy was made on July 23, 2007 in Order A07-118 (PDF, 60K). The specialties and subspecialties were Obstetric/gynecology (practices otherwise limited to gynecology alone are excluded); Neurosurgery; and Diagnostic Radiology (limited to radiologists who read mammograms.  The radiologist must have been a New Jersey Board certified or Board eligible radiologist, certified as meeting the requirements under the Federal Mammography Quality Standards Act and regulations).  The online application period ended Friday, August 24, 2007.
 

What will be the amount of the 2006 premium subsidy (paid in December 2007) per practitioner?
This year's 2006 premium subsidy per eligible specialty was announced on December 14, 2007. The amount of the subsidy per eligible practitioner is dependent upon the number of applicants in each specialty or subspecialty determined to be eligible by the Commissioner, the levels of the average premium rates in those specialties or subspecialties, the average expenditure for medical malpractice liability insurance in an eligible class relative to the average expenditure by practitioners in the other eligible classes, and the amount of funds actually collected by the State Treasurer.

The 2006 subsidy amounts for nearly 1,200 eligible applicants were:
Neurosurgeons       $20,689
Obstetricians/Gynecologists $18,582
Diagnostic Radiologists  $6,678
 
Where do I get an application?
Online applications for the 2006 premium subsidy are no longer available. Only eligible practitioners were allowed to complete the online application prior to August 24, 2007.
 
Who will qualify for this assistance?
Pursuant to the Act, individual practitioners in the specialties or subspecialties that were annually determined to be eligible by the Commissioner of Banking and Insurance based on premium rates and access to care criteria qualified for a subsidy if: they practice their specialty or subspecialty in New Jersey; agree to remain practicing in their specialty or subspecialty in New Jersey for 2 years after receipt of the subsidy payment; and they paid their annual assessment of $75 by the due date on the invoice for the assessment or have claimed a valid exemption by that due date.  Please be advised that failure to pay any outstanding assessment(s) by the February 28, 2007 due date prevented you from applying in 2007 if your specialty be determined to was eligible for this year’s subsidy.
 
Who receives the subsidy payment if my medical malpractice liability insurance premium is paid by my employer?
The Department will issue subsidy payments directly to the named policyholder on your medical malpractice liability insurance policy where appropriate.
 
Frequently Requested Resources - 2006 Subsidy
 
More Information View our Frequently Asked Questions
MMLIPA Fund
NJ Department of Banking and Insurance
PO Box 325
Trenton, NJ 08625-0325
Telephone: 609-292-3100
Fax: 609-777-0019
Revised 12/2007 cam
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New Jersey Department of Banking and Insurance