048-1 Wyo. Code R. § 1-10 - Loans to Participate in a Risk Retention Group

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 1^st, 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.

Notes

048-1 Wyo. Code R. § 1-10