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MEDICAL LICENSE FEES BOOSTED:
TIME TO UP YOUR LEVEL OF PROTECTION?
by Dan Groszkruger, Esq.
CAPsules Consulting Editor
On January 1, 2006, physicians will be paying substantially higher license fees to the Medical Board of California (MBC). Under a 2005 state law, both initial and biennial renewal medical license fees for practicing physicians will increase from $600 to $790. This 31.67% increase will allow the MBC to hire more investigators and prosecutors to go after bad doctors.
Senate Bill 231, sponsored by Senator Liz Figueroa (D-Fremont, CA) authorizes 28 separate changes, all to take effect on January 1st. The increase in the licensing fee is probably the most important. It will increase the MBC’s budget by $10 million, annually. The bill deletes a provision that required the MBC to fix license fees, applying a formula, at a sum not to exceed $610. The legislature passed this bill largely in response to criticism directed at the perceived inefficiency of the MBC’s disciplinary program.
Senator Figueroa, the author of the bill, characterized the MBC, before these new reforms, as ". . . more of a lap dog than a watchdog." According to Figueroa, "This bill will save lives for generations to come. . . . Patients have been waiting for a board that was fully funded, fair and tough."
The additional money will allow the MBC to more aggressively prosecute bad doctors, and to do so quicker. Prior to the advent of SB 231, the MBC depended upon physician license fees to fund its entire $41 million annual budget. "We couldn’t do much but keep our head above water," according to David Thornton, Executive Director of the MBC. There had been no increase in the amount of physician license fees in 12 years, while the number of licensed physicians has grown to about 127,000.
Unfortunately, some very good doctors get swept up in the MBC's efforts to rid the profession of "bad doctors." The MBC's increased budget (i.e., more investigations and more accusations of unprofessional conduct) seems to make the risk of becoming a target just that much higher.
As a benefit of membership, every CAP member-physician already enjoys protection under the MEDefense coverage. This program offers coverage up to $25,000, to pay defense costs if a member is targeted for discipline by the MBC. However, the complexity and legal issues inherent in MBC actions against your license (similar to alleged Medicare or MediCal fraud and abuse, violation of the EMTALA anti-dumping law), continue to escalate. The cost to defend yourself could exceed current limits.
Additional MEDefense coverage, such as higher limits of $40,000, $55,000 or $110,000, is available at a very reasonable additional cost.
Contact Matt Shaklee at Medical Risk Management Insurance (MRMi) Services, telephone (877) 898-6764, FAX (888) 745-6764, or e-mail: mshaklee@cap-mpt.com, for additional information or to obtain a quote.
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