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The NY Medical Indemnity Fund: A Key Misconception Endures

Todd Kipnes - Monday, September 21, 2015

The NY Medical Indemnity Fund ("MIF") was created over four years ago, but we have observed that a number of lawyers and other practitioners involved in the settlement of claims of neurologically impaired infants continue to hold a fundamental misconception -- to wit, that the amount of a settlement which is allocated towards future medical expenses ("MIF Damages") corresponds to an amount to be: 1) contributed to the settlement by the MIF; or 2) allocated toward the infant's future care.

Neither of these is true.  The nominal amount of a settlement that is allocated to MIF Damages does not correspond to an amount of money that will be paid by the MIF (or anybody else), or which will be allocated towards, or spent on, the infant's future care.  Indeed, every qualified plaintiff who is accepted into the MIF receives exactly the same thing -- lifetime payment of all qualifying health care costs.  For this purpose, the amount of the original settlement -- be it $50,000 or $5,000,000 -- is wholly irrelevant. 

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