Provides for greater oversight and regulation by the department of business regulation on medical-malpractice insurance among self-insured entities.

Plain-English Summary

This bill would give Rhode Island's Department of Business Regulation more authority to oversee and regulate how certain healthcare organizations handle their own medical malpractice coverage. Instead of buying traditional insurance from an outside insurance company, some hospitals, medical groups, or healthcare providers "self-insure," meaning they set aside their own money to pay for potential malpractice claims. Currently, these arrangements may operate with limited state oversight.

Under this bill, the Department of Business Regulation would have stronger tools to monitor and regulate these self-insured entities, ensuring they are financially prepared to actually pay out malpractice claims if a patient is harmed. This could include requirements around how much money must be set aside, how these funds are managed, and what reporting these organizations must provide to the state.

The bill primarily affects two groups of people. First, it affects healthcare organizations — such as hospitals or medical practices — that self-insure against malpractice claims, as they would face new regulatory requirements and oversight. Second, and perhaps more importantly, it affects patients, who would have greater assurance that if they are injured due to medical negligence, the responsible healthcare provider actually has sufficient funds available to compensate them.

The bill has been introduced in the Rhode Island House and referred to the House Corporations Committee, where it will be reviewed before any further legislative action takes place.