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Medical Malpractice Liability Insurance Premium Assistance Fund (MMLIPA)

  1. What is the Medical Malpractice Liability Insurance Premium Assistance Fund and why have I received a Fund assessment?
  2. Who pays into the Fund?
  3. How much is the assessment and how long will it last?
  4. Is anyone exempt from this fee?
  5. What is the definition of "bona fide office?"
  6. What does "completely retired" mean?
  7. Must I complete the invoice if I am claiming an exemption?
  8. I do not have a bona fide office in New Jersey. How can I claim an exemption?
  9. How can I claim an exemption if I am serving in the armed forces, VISTA or the Peace Corps.?
  10. What happens if I lost the invoice or did not receive it?
  11. How do I complete the invoice?
  12. Where should the invoice and payment be mailed?
  13. Can I pay the assessment by cash or with a credit card?
  14. What is the due date to submit the invoice?
  15. What will happen to me if I do not return the invoice with the $75.00 assessment fee?
  16. I missed the deadline for submission of the invoice. What should I do?
  17. Who is eligible for this assistance and what is the amount of the subsidy?
  18. Where do I get an application?
  19. How much will the subsidy payment be?

    For more information or if you need to obtain an application for the subsidy, please visit the Department of Banking and Insurance Web site at www.njdobi.org. All interested parties can submit factual information or comments concerning this Fund to the Department through December 31, 2004 by writing to the Department at MMLIPA Fund at P. O. Box 325, Trenton, NJ 08625, or via fax at (609) 777-0508 or by e-mail at MMLIPA@dobi.state.nj.us.

  1. What is the Medical Malpractice Liability Insurance Premium Assistance Fund and why have I received a Fund assessment?
  2. The New Jersey Medical Care Access and Responsibility and Patients First Act (Act), P.L. 2004, c.17 was signed into law on June 7, 2004. The Act creates the Medical Malpractice Liability Insurance Premium Assistance Fund; the Health Care Subsidy Fund; a student loan reimbursement program for obstetrician/gynecologists; and an annual allocation to the Division of Medical Assistance and Health Services. The Medical Malpractice Liability Insurance Premium Assistance Fund (Fund) is to be administered by the Department of Banking and Insurance (see N.J.S.A. 17:30D-28 et seq.).

    This Fund was created for the purpose of preserving access to quality medical care for New Jersey patients by providing direct relief towards the payment of medical malpractice liability insurance premiums to certain health care providers in New Jersey, who are finding it difficult to remain in practice due to escalating medical malpractice liability insurance premium rates.
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  3. Who pays into the Fund?
  4. Physicians, podiatrists, chiropractors, dentists, optometrists and attorneys all are required to pay $75.00 each year. In addition, every employer is required to remit $3.00 per employee, as a payroll deduction.
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  5. How much was the assessment?
  6. The annual fee of $75.00 was assessed for calendar years 2004, 2005 and 2006.
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  7. Is anyone exempt from this fee?
  8. Physicians, podiatrists, chiropractors, dentists and optometrists are exempt if they:

    1. Have been licensed for less than one year;
    2. Are barred from practicing by any disciplinary order of a Board or because their license has expired; and
    3. Are completely retired from the practice of their profession and have elected to place their license in an inactive status.

    Other exemptions include:

    1. Licensees who do not have a bona fide office in New Jersey, and
    2. Licensees who are on full-time duty in the armed forces, VISTA or the Peace Corps, where the maintenance of the license is not required in the performance of those duties or the assignment is out of the State of New Jersey.
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  9. What is the definition of"bona fide office?"
  10. "Bona fide office" means a practice location at which a licensee engages in any activity or provides any service for which possession of a license is statutorily required or otherwise mandated by virtue of the job description, specification or qualifications. A"bona fide office" shall include a private practice setting, at a hospital, educational institution, research facility, governmental agency or a business. The accessibility of a licensee at the practice location to members of the public in person or by telephone shall not be a determinative factor.
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  11. What does"completely retired" mean?
  12. "Completely retired" means a licensure status established by a licensee's affirmative election of an inactive status at the time of license renewal pursuant to N.J.S.A. 45:1-7.3, or through a submission of other written notice, where authorized by the professional practice act to obtain a certificate of retirement. During the time that a licensee is"completely retired," no practice of the profession, within the meaning of this definition, is authorized, including but not limited to, the prescribing of medications, if authorized within the scope of practice. Physicians who are 65 years or older, without hospital or health maintenance organization affiliation and who hold a reduced fee license, issued pursuant to N.J.S.A. 45:9-19.16, shall be deemed active licensees and shall not be deemed "completely retired."
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  13. Must I complete the invoice if I am claiming an exemption?
  14. Yes. In order to claim an exemption, you must complete the invoice, sign it and mail it to: State of New Jersey, P.O. Box 650, Trenton, NJ 08646-0650. Do not forward the invoice to the Board.
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  15. I do not have a bona fide office in New Jersey. How can I claim an exemption?
  16. In order to claim this exemption, you must complete, sign and return the Medical Malpractice Liability Insurance Premium Assistance Fund Assessment invoice (invoice) which was mailed to you. Be sure to answer "NO" to Question 1. The completed and signed invoice must be returned by the invoice due date.
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  17. How can I claim an exemption if I am serving in the armed forces, VISTA or the Peace Corps.?
  18. To qualify for the armed services, VISTA or the Peace Corps exemption, you must be on full-time duty. If you are assigned to duty outside of the State of New Jersey, you are eligible for the exemption. If you do not need to maintain your license to perform the duties that you are assigned, you are eligible for the exemption.

    Be sure to answer A YES @ to Question 2 on the invoice. You must also answer Questions 2a and 2b. Your answers in 2a and 2b will determine if you are eligible for the exemption. If your answer to either of these questions is A NO, @ you are eligible for the exemption.

    In order to be eligible for an exemption, you must complete, sign and return the invoice by the invoice due date.
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  19. What happens if I lost the invoice or did not receive it?
  20. From within New Jersey, you can call toll-free at 1-888-656-6225 to request a replacement invoice. If you are outside of New Jersey, please dial 1-973-424-8150. It may take up to 10 business days for you to receive the replacement invoice.
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  21. How do I complete the invoice?
  22. Please read the invoice instructions carefully. You must answer all of the questions, sign the back of the invoice and return the invoice in the envelope that has been provided. If you are not exempt, you must also include a check or money order in the amount of $75.00 made payable to the State of New Jersey.
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  23. Where should the invoice and payment be mailed?
  24. You should mail your completed invoice and payment to: State of New Jersey, P.O. Box 650, Trenton, NJ 08646-0650. Do not forward the invoice to the Board.
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  25. Can I pay the assessment by cash or with a credit card?
  26. At this time, the assessment cannot be paid by cash or credit card. Payment must be made by check or money order. Please make the check or money order payable to the State of New Jersey.
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  27. What was the due date to submit the invoice?
  28. The billing date for 2006 was February 28, 2007.
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  29. What will happen to me if I do not return the invoice with the $75.00 assessment fee?
  30. If you are not claiming an exemption and you fail to remit the assessed fee, enforcement and/or collection actions may be pursued. You will also be ineligible to be considered for a Medical Malpractice Liability Insurance Premium Subsidy.
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  31. I missed the deadline for submission of the invoice. What should I do?
  32. Complete the invoice and submit payment as quickly as possible. You should mail your completed invoice and payment to: State of New Jersey, P.O. Box 650, Trenton, NJ 08646-0650. Do not forward the invoice to the Board.
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  33. Who is eligible for this assistance and what is the amount of the subsidy?
  34. The Department of Banking and Insurance will administer the Fund and make all of the decisions regarding who is eligible to receive a subsidy. The Commissioner of the Department of Banking and Insurance will make an annual determination concerning eligible specialties or subspecialties based upon (a) a specialty or subspecialty's level of premium rate increase and (b) the insufficient number of practitioners practicing in that specialty or subspecialty which threatens access to care for New Jersey’s patients.
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  35. Where do I get an application?
  36. Online applications for the 2006 premium subsidy are now available. Only eligible practitioners will be allowed to complete the online application.
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  37. How much will the subsidy payment be?
  38. The amount of the 2006 subsidy payment per eligible practitioner is dependent upon the number of applicants in each specialty or subspecialty determined to be eligible by the Commissioner, the levels of the average premium rates in those specialties or subspecialties, the average expenditure for medical malpractice liability insurance in an eligible class relative to the average expenditure by practitioners in the other eligible classes, and the amount of funds actually collected by the State Treasurer. The amount of the 2006 subsidy per eligible practitioner will be determined and announced once all of the 2006 applications are submitted and approved.
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