Bill > H8401

This bill, effective January 1, 2027, significantly expands the regulatory authority of the Department of Business Regulation (DBR) over medical malpractice coverage for Rhode Island healthcare providers, including hospitals, physicians, and other licensed professionals. It mandates that all forms of medical malpractice coverage, whether through traditional insurance, self-insurance programs, captive insurance companies (entities regulated as insurance entities), or risk-sharing pools, must be approved by the DBR. The DBR will establish standards for financial solvency, reserve adequacy, claims-paying ability, and governance for these coverage providers. Hospitals seeking to self-insure for medical malpractice will need DBR approval, demonstrating actuarial soundness, adequate capitalization, claims-paying ability, ongoing financial reporting, and the ability to survive the hospital's potential bankruptcy. The DBR will have the power to examine, audit, and take corrective actions, including suspending or revoking approval, similar to its oversight of licensed insurers. Furthermore, healthcare facilities will have their licenses conditioned on maintaining approved medical malpractice coverage, with failure to do so potentially leading to denial, suspension, or revocation of their licenses. The bill also requires that information about medical malpractice coverage, including the provider and coverage limits, be made public upon demand.