Voluntary Compensation Funds (not all inclusive)
- Indiana - Provider may enroll in the compensation fund. The primary policy will cover the first $250,000 and the fund will provide an additional $1M. The cap on damages in Indiana, if enrolled, is $1.25M. Enrollments can be done on per day basis subject to $100 minimum. There is also $100 charge for tail. Indiana will now enroll on a per diem basis.
- Louisiana - Provider may enroll in the compensation fund. The primary policy will cover first $100,000 and the fund will provide an additional $400,000. The cap on damages, if enrolled, is $500,000. Enrollments can be done on per day basis subject to $250 minimum.
Mandatory Compensation Funds
- Pennsylvania - If Provider practices more than 50% of practice in PA, Providers must enroll in the compensation fund. The primary policy will cover the first $500,000 and the compensation fund will provide another $500,000. Enrollments can be done on per day basis.
- Kansas– If Provider is a Resident of the state and Licensed, the Provider must enroll in the compensation fund with an approved carrier.. If Provider is a non-resident, the Provider must enroll with a carrier that has filed a “Declaration of Compliance”. The primary policy will cover the first $200,000 and the Provider can purchase several options from the compensation fund. Enrollments can be done on a per day basis subject to $50 minimum. Note - If you enroll a provider, you are responsible for all "prior acts" while they are enrolled under your program.
- Wisconsin - If a Provider practices more than 240 hours annually in Wisconsin or more than 50% of their income is derived from Wisconsin or 50% of their patients seen are in Wisconsin, the Provider must enroll in the compensation fund. Primary carrier must be an approved carrier..
A compensation fund is a vehicle set up where your insurance carrier provides a level of coverage and then the state provides a layer above your coverage. There are mandatory compensation fund states where you must enroll if circumstances are met and there are voluntary states where you can elect to enroll the provider. Depending on the circumstance, there may or may not be a benefit to enroll in the fund. The list of states with compensation funds is pretty extensive. But, the main ones you need to be concerned with are Wisconsin, Kansas, Pennsylvania (all mandatory), Indiana and Louisiana (Voluntary states but have significant benefits).
Below is a summary of the compensation fund states and the rules attached to them. Please be advised this information is subject to change at anytime and is provided for informations purposes only.