New York's Medical Indemnity Fund Faces Funding Crisis, Leaving Injured Children in Limbo

The New York state's Medical Indemnity Fund, which provides lifelong care for children injured by medical malpractice, is facing a severe funding shortage. With the fund projected to run out of money as early as next spring, the future of the program and the well-being of the children it serves hang in the balance.

Ensuring a Lifetime of Care for the Most Vulnerable

A Funding Shortfall Threatens the Fund's Viability

The Medical Indemnity Fund was established in 2011 as a way to curb skyrocketing medical malpractice insurance costs in New York. Under the program, hospitals and doctors found negligent in malpractice cases are only responsible for a portion of the damages, with the state's fund covering the remaining costs. However, the fund is now facing a projected shortfall of at least billion, putting its long-term sustainability in jeopardy.The original plan was for hospitals to largely finance the fund, but state records show their contributions have not been enough to keep up with the growing demand. As a result, the state has had to step in with additional funding, including a recent million injection from taxpayers. This has raised concerns about the fairness of the burden-sharing arrangement and the need for a more sustainable funding model.

Enrollment Halted, Leaving Families Anxious

In a move that has further exacerbated the crisis, the New York Department of Health quietly stopped enrolling new applicants into the Medical Indemnity Fund earlier this year. Families were caught off guard, learning of the change through a notice on the state's website rather than through direct communication.This decision has left many families feeling betrayed and uncertain about the future. Chase Sadowski, a 17-year-old who suffered a neurological injury at birth, is one of the children impacted by the fund's troubles. His family has faced delays in getting essential modifications, such as a wheelchair lift and car adaptations, that were previously approved as "medically necessary."Other families have reported issues with reimbursements for services, further compounding the challenges they face in providing for their children's complex medical needs. The state has cited patient privacy concerns in declining to comment on specific cases, but the impact on these vulnerable families is undeniable.

Stakeholders Seek Solutions, but Commitment Remains Elusive

As the crisis deepens, lawmakers and stakeholders are calling for a collaborative effort to find a solution. Senator Liz Krueger, chair of the Senate Finance Committee, has proposed a public roundtable to bring together all the relevant parties, including the governor's office, to discuss the fund's future.However, the governor's office has yet to commit to such a public forum, raising concerns about the level of transparency and accountability surrounding the issue. Laura Alfredo, with the Greater New York Hospital Association, has acknowledged the need for "alternate ways of funding the MIF," but the details of a potential solution remain unclear.The stakes are high, as the Medical Indemnity Fund's ability to fulfill its promise of lifelong care for injured children hangs in the balance. With the clock ticking and families growing increasingly anxious, the need for a comprehensive and sustainable solution has never been more urgent.