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See Policy G-635.130 23 2013 Annual Meeting Board of Trustees - 1 REPORTS OF THE BOARD OF TRUSTEES The following reports, 1–33, were presented by Steven J. Stack, MD, Chair: 1. AUDITOR’S REPORT Reference committee hearing: see report of Reference Committee F. HOUSE ACTION: FILED The Consolidated Financial Statements for the years ended December 31, 2012 and 2011 and the Independent Auditor’s report have been included in a separate booklet, titled “2012 Annual Report.” This booklet is included in the handbook mailing to Members of the House of Delegates and will be discussed at the Reference Committee F hearing. 2. AMA 2014 DUES Reference committee hearing: see report of Reference Committee F. HOUSE ACTION: RECOMMENDATION ADOPTED AND REMAINDER OF REPORT FILED See Policy G-635.130 Our American Medical Association (AMA) last raised its dues in 1994. In recent years, AMA has invested significantly in improving the value of membership. As AMA’s membership benefits portfolio is modified and enhanced, management will continuously evaluate dues pricing to ensure optimization of the membership value proposition. RECOMMENDATION 2014 Membership Year The Board of Trustees recommends no change to the dues levels for 2014, and that the following be adopted, and that the remainder of this report be filed: Regular Members $ 420 Physicians in Their Second Year of Practice $ 315 Physicians in Military Service $ 280 Physicians in Their First Year of Practice $ 210 Semi-Retired Physicians $ 210 Fully Retired Physicians $ 84 Physicians in Residency Training $ 45 Medical Students $ 20 © 2013 American Medical Association. All rights reserved. 24 Board of Trustees - 3 June 2013 3. PHYSICIAN INSURERS ASSOCIATION OF AMERICA: OFFICIAL OBSERVER STATUS IN THE HOUSE OF DELEGATES Reference committee hearing: see report of Reference Committee on Amendments to Constitution and Bylaws. HOUSE ACTION: RECOMMENDATION ADOPTED AND REMAINDER OF REPORT FILED See Policy G-600.025 INTRODUCTION The Physician Insurers Association of America (PIAA) has requested official observer status in the House of Delegates (HOD). The American Medical Association (AMA) and the PIAA have had a long-standing, collaborative relationship and share many of the same goals when it comes to improving the current medical liability system and patient safety. The following report: (1) discusses AMA Bylaws and Policy that address requests and establish guidelines for official observer status; (2) provides background on the PIAA and discusses if the PIAA meets the official observer guidelines; and (3) recommends for consideration by the HOD that the PIAA be granted official observer status. AMA BYLAWS AND POLICY Our AMA Bylaws state the following regarding official observers B-2.20 and 2.201: 2.20 Official Observer. National organizations may apply to the Board of Trustees for official observer status in the House of Delegates. Applicants must demonstrate compliance with guidelines for official observers adopted by the House of Delegates, and the Board of Trustees shall make a recommendation to the House of Delegates concerning the application. The House of Delegates will make the final determination on the conferring of official observer status. 2.201 Rights and Privileges. Organizations with official observer status are invited to send one representative to observe the actions of the House of Delegates at all meetings of the House of Delegates. Official observers have the right to speak and debate on the floor of the House of Delegates upon invitation from the Speaker. Official observers do not have the right to introduce business, introduce an amendment, make a motion, or vote. Governing Policy G-600.025 establishes the following criteria for selection of and attendance by official observers in our AMA House of Delegates: 1. Applications for official observer status will be reviewed using the following guidelines: a. The organization and the AMA should already have established an informal relationship and have worked together for the mutual benefit of both. b. The organization should be national in scope and have similar goals and concerns about health care issues. c. The organization is expected to add a unique perspective or bring expertise to the deliberations of the House of Delegates. d. The organization does not represent narrow religious, social, cultural, economic, or regional interests so that formal ties with the AMA would be welcomed universally by AMA members. 2. An organization granted official observer status in the House shall automatically lose that status if no representative of the organization appears at six consecutive House of Delegates meetings. A full list of official observers to the House of Delegates is available in the Appendix. DISCUSSION The PIAA is an insurance industry trade association representing domestic and international medical professional liability (MPL) insurance companies, and it is seeking official observer status to help the PIAA become even more aware of our AMA’s views on, and concerns about, the numerous issues affecting physicians today. The PIAA also © 2013 American Medical Association. All rights reserved. 25 2013 Annual Meeting Board of Trustees - 3 believes that official observer status will allow it to enhance our AMA’s understanding of medical liability issues and the insurance upon which so many physicians rely. The PIAA was created in 1977 and is directed by MPL insurance companies owned and/or operated by physicians, hospitals, dentists, and other healthcare providers. PIAA domestic member companies include large national insurance companies, mid-size regional writers, single-state insurers, and specialty companies that serve specific healthcare-provider niche markets. Collectively, these companies provide insurance protection to more than 60 percent of America’s private practice physicians across many states, and write approximately 46 percent or $5.2 billion of the total industry premium. The PIAA is an advocate for sound public policy that fosters a healthy and competitive insurance marketplace and has been an ally for the AMA as we seek to advance our legislative, judicial, and research goals related to medical liability reform and patient safety. Both groups have advocated for traditional medical liability reforms that maintain a stable liability climate for physicians and patients and have sought demonstration grants to advance pilot projects on innovative medical liability concepts. Both groups have also sought to defend currently enacted medical liability reforms at the state level through both legislative and judicial efforts. AMA economists routinely make use of PIAA closed claim summary reports in their work and consult with PIAA staff to better understand that data. AMA and PIAA staff attend each other’s advocacy conferences. Finally, AMA and PIAA staff belong to coalitions that focus their efforts on improving the medical liability system. For example, AMA and PIAA staff serve on the Board of the Health Coalition on Liability and Access (HCLA), with a PIAA staffer currently serving as chair. Both our AMA and the PIAA belong to the American Tort Reform Association (ATRA) as well, which is another prominent coalition advocating for medical liability reform. So there are both formal and informal relationships between AMA and PIAA staff, and these relationships have been very helpful to our advocacy efforts over the years. With 60 MPL companies as members and the broad number of physicians that these companies insure, the PIAA has keen insight into the current state of the medical liability market and sees developing trends much sooner than other organizations based on the size and number of claims in its database. Recognizing and addressing potential new liability exposure for physicians are important tasks as our nation’s health care system transitions to new payment and delivery models and incorporates new technology into the practice of medicine. The PIAA can provide vital information to the House of Delegates as it monitors the medical liability climate moving forward and determines appropriate policy to address any potential issues. As stated above, PIAA member companies represent 60 percent of U.S. private practice physicians, and its members’ reach is national in scope, so the PIAA is not bound by narrow interests. Further, it is expected that the House of Delegates would welcome the expertise that the PIAA brings on an issue that is so vital to physician practice. SUMMARY AND RECOMMENDATION In summary, there has been a long, cooperative, and productive relationship between our AMA and the PIAA. The Board of Trustees believes the PIAA would bring a unique perspective, and would be a welcome addition, to the deliberations of the AMA House of Delegates. The Board of Trustees therefore recommends that our American Medical Association grant the Physician Insurers Association of America official observer status in the House of Delegates and that the remainder of the report be filed. APPENDIX – Official Observers to the House of Delegates Organization Year Admitted 1. Accreditation Association for Ambulatory Health Care 1993 2. Alliance for Continuing Medical Education 1999 3. Ambulatory Surgery Center Association 2005** 4. American Academy of Physician Assistants 1994 5. American Association of Medical Assistants 1994 6. American Dental Association 1982 7. American Health Quality Association 1987* 8. American Hospital Association 1992 © 2013 American Medical Association. All rights reserved. 26 Board of Trustees - 3 June 2013 9. American
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