Wyoming Administrative Code › Agency 048 - Health, Department of › Sub-Agency 0050 - Rural Health, Office of › Chapter 1 - MEDICAL MALPRACTICE INSURANCE ASSISTANCE PROGRAM › Section 1-10 - Loans to Participate in a Risk Retention Group

Current through July 13, 2024
The Department may make loans pursuant to this Chapter to
				  physicians to permit them to participate in risk retention groups, including
				  the cost of any required capital contribution.
(a) Eligibility. A physician is eligible for
				a loan to participate in a risk retention group if the physician is licensed
				and practicing medicine in Wyoming;
(b) Amount of loan. The principal amount of
				the loan shall be no greater than the amount needed to participate in the risk
				retention group, except that the amount of the loan shall not exceed
				one-hundred fifty percent (150 %) of the physician's most recent annual
				malpractice insurance premium. The amount shall also be prorated for the
				percentage of the physician's actual practice in Wyoming. The Department may
				approve the making of the loan upon its determination of compliance with this
				section. Loan proceeds shall not be disbursed until the physician has paid or
				immediately will pay for this participation in the risk retention
				group.
(c) Terms of the contract.
				Upon approval of the application, the physician shall enter into a contract
				with the Department. The contract shall include the following terms:
(i) Physician's Specialty. The physician
				shall continue to practice in the physician's specialty or sub-specialty for
				the entire period of time for which the loan remains unpaid;
(ii) Interest rate. The interest rate for
				loans made pursuant to this Chapter shall be determined by the Wyoming State
				Treasurer at an annual rate equal to the average prime interest rate during the
				preceding fiscal year plus one percent (1%) and shall be adjusted effective
				January 
				st of each calendar year, including
				January 1st, 2005. To determine the average prime
				interest rate, the State Treasurer shall average the prime interest rate for at
				least seventy-five percent (75%) of the thirty (30) largest banks in the United
				States;
(iii) Time of repayment.
				Loans made pursuant to this Section shall be repaid within ten (10) years fi-om
				the date of disbursement of loan proceeds, together with interest as determined
				by the State Treasurer and as noted in Section
				10(c)
				(iii), above;
(iv) Participation in Medicaid and CHIP. The
				physician shall become and shall remain a provider of Medicaid and CHIP
				services for the entire period of time for which the loan remains
				unpaid;
(v) Documentation. A
				physician shall, upon request of the Department, promptly provide documentation
				to establish that the physician has complied with the terms of the contract and
				to determine the amount of the loan that should be provided under the
				Act;
(vi) Insufficient funds. If
				funding from the account is insufficient to provide assistance to all eligible
				applicants, the Department may, at its discretion, reduce the amount of
				assistance to each eligible applicant on a pro rata basis. In no event may the
				Department make loans in excess of the total appropriation.
(vii) Security interest. The physician shall
				provide the state with a security interest in the physician's membership or
				shareholder interest in the risk retention group; and
(viii) Breach of contract. In addition to any
				other civil or criminal penalties that may be imposed by law, any physician or
				contracting entity that fails or refiises to fulfill the terms of the contract
				required under this section shall be in breach of the contract. In the event of
				a breach of the contract, the physician shall immediately repay the outstanding
				principal on the loan, plus accrued interest under the contract, together with
				attorney fees, and any other costs of collection.