The 2021-2022 annual surcharge rates that physicians must pay into the Indiana Patient’s Compensation Fund (PCF) to be qualified under Indiana’s Medical Malpractice Act (MMA) will decrease by 1.65% from the current rates, the Indiana Department of Insurance (IDOI) announced Feb. 24. The rates for hospitals will also decrease.

For medical malpractice policies written or renewed on or after July 1, 2021, the following will apply:

• For physicians, the overall surcharge will decrease by 1.65% from the current rates.
• For hospitals, the overall surcharge will decrease by 2.1% from the current rates.

The PCF is a dedicated fund administered by the IDOI and was created in 1975 by the Indiana General Assembly as a component of the Indiana MMA. The fund provides excess compensation for patients who have experienced medical malpractice, in addition to the recovery of compensation from a defendant health care provider. 

The PCF is funded via a surcharge paid as part of a health care provider’s liability insurance premium. The amount of surcharge each physician pays is based on the risk associated with that physician’s specialty. 

Read IDOI Bulletin 257 announcing the new rates (PDF).