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Ehrlich to Call Special Session On Malpractice

Insurance on Dec. 27 Agenda, But Funding Detail Unsettled

By John Wagner and Matthew Mosk
Washington Post Staff Writers
Saturday, December 18, 2004; Page A01

Gov. Robert L. Ehrlich Jr. (R) announced last night that he will call the Maryland General Assembly into a special session in 10 days to enact medical malpractice reforms, even though he and Democratic leaders have yet to agree on all aspects of the complex legislation to curb doctors' escalating insurance costs.

Ehrlich and the legislature's top Democrats said they are close to a consensus on a package of long-term legal changes but remain divided over one key issue: how to pay for a proposed state fund that would help roll back an average 33 percent rate increase facing most of the state's doctors in January.


"There is a lot of agreement here," said Gov. Robert L. Ehrlich Jr., in College Park yesterday. "It's about 90 percent." Ehrlich wants a vote on Dec. 28. (Lucian Perkins -- The Washington Post)

_____From The Post_____
Interim Malpractice Solutions Snubbed (The Washington Post, Dec 14, 2004)
Md. Gets Warning on Malpractice Proposal (The Washington Post, Dec 11, 2004)
Chance for Special Session Called Slim (The Washington Post, Dec 7, 2004)
Md. Senate Panel Relents on Medical Malpractice Reform (The Washington Post, Dec 2, 2004)
Malpractice Pinch Has Md. Doctors Mulling Whether to Wait -- or Leave (The Washington Post, Nov 30, 2004)
In Delivery Room, Baby and Doctor at Risk (The Washington Post, Nov 27, 2004)
Doctors Rally As Insurance Talks Drag On (The Washington Post, Nov 18, 2004)

"There is a lot of agreement here," Ehrlich said in an interview after his announcement. "It's about 90 percent."

The special session, which will begin two days after Christmas, would allow lawmakers to act on malpractice before Jan. 1, when the state's largest malpractice insurer will cancel insurance policies of doctors who have not made at least a first-quarter payment.

Ehrlich said the revenue source and mechanics for the proposed reinsurance fund are the only major issues that remain unresolved. "Other than that, we're there," Ehrlich said.

House Speaker Michael E. Busch (D-Anne Arundel) and Senate President Thomas V. Mike Miller Jr. (D-Calvert) support paying for the fund by placing a 2 percent premium tax on HMOs and managed care organizations.

But Ehrlich has said in recent days that he would rather use existing state resources -- a move Democrats have warned will make balancing next year's state budget more difficult. Fiscal analysts are projecting a $311 million shortfall.

Busch said a series of lengthy meetings in recent days convinced him that there is hope of a resolution. "I believe the governor thinks there's enough goodwill to get this accomplished and that the few remaining sticking points will be brought to an agreement," Busch said. "After all, it is the holiday season."

Miller, however, questioned the wisdom of moving forward without all the details resolved.

"I personally feel if we don't have an agreement, we should wait," he said. "We still prefer the HMO tax. There's no question about it."

The governor, who is authorized to call in the General Assembly only under extraordinary circumstances, set a tentative schedule for the legislature to convene for hearings on Dec. 27 and a final vote the next day. Busch said he believes that the state's 188 lawmakers are obligated to cancel holiday plans and come to Annapolis.

The gathering will be the first special session in Maryland since 1992, when Gov. William Donald Schaefer (D) called lawmakers to Annapolis twice to deal with problems stemming from the 1991-92 recession. Those sessions lasted one day each, because legislators knew exactly what they would be asked to vote on.

"Doing it this way is very unusual," Harry R. Hughes (D), who served as governor from 1979 to 1987, said of Ehrlich's plans. "When we called a special session on savings and loan reform, we had everything ready to go. The bills were drawn. Leadership was in agreement. And we got it all done in a day."

Sen. Brian E. Frosh (D-Montgomery) said he believes that the decision to convene the legislature will put intense pressure not only on lawmakers, but also on the governor, to forge a compromise. Frosh headed a Senate task force that recently developed a set of recommendations, which included an HMO tax.


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