General Information and Frequently Asked Questions
What health care professionals and facilities are affected by the Health Care Stabilization Fund?
The Health Care Stabilization Fund provides excess professional liability coverage for health care providers as defined by K.S.A. 40-3401. This includes the following:
- Physicians (M.D.s and D.O.s) who have an active license or hold a temporary permit issued by the Kansas Board of Healing Arts
- Physicians engaged in a postgraduate training program which is approved by the Kansas Board of Healing Arts
- Nurse Anesthetists
- Medical Care Facilities (special hospitals, general hospitals, surgical centers, and recuperation centers)
- Psychiatric Hospitals licensed prior to 1/1/1988
- Mental Health Clinics or Centers
- Physician Assistants*
- Nursing Facilities*
- Assisted Living Facilities*
- Residential Health Care Facilities*
- Dentists who have been certified by the Kansas Board of Healing Arts to administer anesthetics**
- Kansas Professional Corporations or Partnerships created by defined health care providers**
- Kansas Limited Liability Companies organized for the purpose of rendering professional services by its members who are defined health care providers**
- Kansas not-for-profit corporations organized for the purpose of rendering professional services by persons who are defined health care providers** and
- Nonprofit corporations organized to administer the graduate medical education programs of community hospitals or medical care facilities affiliated with the University of Kansas School of Medicine.
*These categories of health care providers are defined as such in K.S.A. 40-3401 effective Jan. 1, 2015.
**These categories of providers are carefully reviewed to assure they meet the strict statutory criteria for Fund participation. Please note that although health maintenance organizations, optometrists, and pharmacists are defined as health care providers in K.S.A. 40-3401(f), the Legislature discontinued their compliance requirements in 1991 and 1997.
What coverage is provided by the Fund?
Defined health care providers are required to obtain a base policy from an insurer of not less than $500,000 per claim, subject to not less than a $1,500,000 annual aggregate. Kansas statute also requires defined health care providers to obtain coverage from the Health Care Stabilization Fund in the amount of $500,000 single judgment or settlement, subject to a $1,500,000 aggregate limitation. Also note:
- Active providers or inactive providers (eligible for Fund tail coverage) are provided coverage for claims arising from services rendered while the provider was in compliance with The Fund.
- Kansas resident health care providers who are in compliance with The Fund are provided coverage for services rendered inside and/or outside the state of Kansas.
- Non-resident health care providers in compliance with the Fund are provided coverage for services rendered in Kansas.
- The Fund coverage limit is based upon when the incident occurred, not when the claim was made or the suit was filed.
Is excess professional liability insurance beyond fund coverage needed?
Excess professional liability insurance beyond The Fund coverage limits is an individual decision made by each health care provider and is available from most basic professional liability insurance companies. The excess professional liability insurance is usually provided on a claims made basis and health care providers should give careful consideration to the associated premium costs, including the cost of the excess policy’s “tail” coverage.