For Immediate Release
December 28, 2005
Contact: Todd Nyquist
(800) 222-9190
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Senate Votes To Extend MCARE Program; Includes Scarnati Amendment 

HARRISBURG –The Pennsylvania Senate passed legislation to extend the state's MCARE abatement program for an additional year and help keep doctors working in the Commonwealth, according to State Senator Joe Scarnati of the 25th district. 

"Without qualified medical professionals staying here there would be no one to care for the everyday health needs of Pennsylvania's families," said Scarnati.  "We must keep medical practices in commission and this bill is intended to do just that." 

The three-year-old program, which helps physicians pay a portion of their medical malpractice insurance premiums, was set to expire at the end of the month.  House Bill 2041, as amended by the Senate, and signed by the Governor now extends the program to December 31, 2007. 

Under the current program, the state pays all or part of the premiums that physicians must pay into the Medical Care Availability and Reduction of Error (MCARE) fund.  The fund helps pay toward the cost of the $500,000 in MCARE fund coverage that the state requires each doctor to secure, in addition to the $500,000 in primary coverage from the private marketplace.  MCARE assistance is financed primarily by a 25-cent tax on cigarettes. 

Scarnati said that from 2002 to 2004, the percentage of resident physicians who trained in Pennsylvania and then stayed in the state to practice fell from 24 percent to 8 percent. 

"Pennsylvania's medical community is starting to see improvements thanks to the comprehensive patient safety and tort reform provisions of Act 13 of 2002 and the MCARE abatement program," Scarnati said.  "Medical malpractice premiums continue to be very high, but the program has helped to keep doctors in the state, and that was our primary goal.  This extension allows us to continue seeing the strengths the program has to offer." 

In addition to the MCARE extension, Scarnati's amendment to assist nursing homes has been incorporated into House Bill 2041.  Nursing homes are now eligible for a 50 percent abatement of their MCARE fund payment. 

"My amendment will supply nursing homes the financial assistance they need to give the best care they can to their patients," said Scarnati.  "Cutting their costs will make an immense impact and does not prove detrimental in terms of costs to the state.   The price of nursing home insurance continues to climb and cutbacks are more frequent than ever; this amendment was essential." 

The bill will take affect immediately.