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PA Bulletin, Doc. No. 06-1178


Professional Corporations, Professional Associations and Partnerships; Notice 2006-07

[36 Pa.B. 3173]
[Saturday, June 24, 2006]

   This notice clarifies what entities may participate in the Medical Care Availability and Reduction of Error Fund (MCARE Fund). On September 1, 1994, the Director of the Medical Professional Liability Catastrophe Loss Fund (CAT Fund) took the opportunity to remind primary insurers writing medical malpractice insurance in this Commonwealth for professional corporations, professional associations and partnerships of the importance of ensuring that entities reported to the CAT Fund were eligible for CAT Fund participation.

   Professional corporations, professional associations and partnerships are not health care providers as defined by the act of March 20, 2002 (P. L. 154, No. 13). However, MCARE Fund participation is mandatory for a professional corporation, professional association or partnership that is completely owned by health care providers as defined by the Act and elects to obtain basic coverage insurance. The professional corporations, professional associations and partnerships are required to pay the applicable assessment.

   MCARE Fund participation is limited to those types of professional corporations, professional associations or partnerships that were in existence on November 26, 1978. Nothing in this notice should be construed as a change in the Fund's position.

   Issuance of this notice is consistent with the authority granted to the MCARE Fund under 31 Pa. Code § 242.14 (relating to bulletins and notices).

Deputy Insurance Commissioner

[Pa.B. Doc. No. 06-1178. Filed for public inspection June 23, 2006, 9:00 a.m.]

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