BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1031 (Corbett)
Hearing Date: 5/27/2010 Amended: 5/18/2010
Consultant: Katie Johnson Policy Vote: BP & ED 7-0
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BILL SUMMARY: SB 1031 would establish the Volunteer Insured
Physicians (VIP) Program to offer liability insurance to
physicians who voluntarily provide uncompensated primary care
services to low-income patients.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
VIP Program administration $125 $360
$360Special*
and purchase of insurance
*Contingent Fund of the Medical Board of California
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STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
This bill would create the VIP Program, to be administered by
the Medical Board of California (Board), which would offer
medical professional liability insurance to licensed physicians
for any claims arising from voluntary and uncompensated care
provided to low-income patients.
Approximately 3,200 physicians are currently designated with
voluntary service status, but it is unknown how many of them
currently provide voluntary services. If half of them were to
participate in the VIP Program, the Board would likely need a
full-time staff person, insurance broker services, and medical
consultation and would pay the liability insurance premiums, at
an estimated cost of approximately $125,000 in FY 2010-2011 and
$360,000 in FY 2011-2012 and annually until January 1, 2016, or
until another funding source is found, whichever occurs first.
Costs could be higher to the extent that the purchase of
insurance is more than predicted.
The Board would review the voluntary service application
initially and then reassess VIP Program eligibility during each
license renewal cycle. It would also annually report to the
Legislature on the efficacy and access and treatment outcomes of
the care provided through this program.
This bill would require that all costs, including program
administration and insurance premiums, would be covered by
physician licensing fees.
The proposed amendments would delete the reference to an
unspecified cap on the expenditures allowed from the contingent
fund to ensure that the contingent fund fully funds this
program.