H.B. No. 0204

Excess medical noneconomic damages.

 

Sponsored By:                    Representative(s) Simpson, Buchanan, Esquibel, Harshman, Hinckley, Nicholas, Parady, Reese and Ross and Senator(s) Coe, Decaria and Vasey

 

AN ACT relating to noneconomic medical damages payments; creating the noneconomic medical damages payments account; proving legislative findings and purposes; authorizing payments of excessive noneconomic medical damages awards against physicians as specified; requiring agreements; providing requirements; specifying duties of attorney general; providing an appropriation; and providing for an effective date.

 

02/11/2004             Bill Number Assigned

02/11/2004             H Received for Introduction

02/13/2004             H Introduced and Referred to H01

 

ROLL CALL

Ayes:  Representative(s) Alden, Bagby, Berger, Brechtel, Buchanan, Bucholz, Childers, Cohee, Cooper, Diercks, Edwards, Esquibel, Gentile, Gilmore, Hageman, Harshman, Harvey, Hastert, Hinckley, Iekel, Illoway, Jansen, Johnson, L., Johnson, W., Landon, Latta, Law, Luthi, Martin, McMurtrey, McOmie, Meyer, Miller, D., Morgan, Nicholas, Olsen, Parady, Petersen, Powers, Prosser, Reese, Robinson, Ross, Simpson, Slater, Thompson, Walsh, Warren and Wasserburger.

Nays:  Representative(s) Anderson, R., Baker, Jones, Jorgensen, Lockhart, Meuli, Osborn, Philp, Semlek and Wostenberg.

Excused:  Representative(s) Tipton

Ayes 49    Nays 10    Excused 1    Absent 0    Conflicts 0

 

02/19/2004             H01 Recommended Amend and Do Pass

 


ROLL CALL

Ayes:  Representative(s) Alden, Bagby, Berger, Buchanan, Olsen, Petersen, Reese and Simpson

Nays:  Representative(s) Landon

Ayes 8    Nays 1    Excused 0    Absent 0    Conflicts 0

 

02/19/2004             H Placed on General File

02/19/2004             H Rereferred to H02

02/19/2004             H02 Recommended Do Pass

 

ROLL CALL

Ayes:  Representative(s) Jones, Luthi, Meuli, Nicholas, Philp and Warren

Nays:  Representative(s) Jorgensen

Ayes 6    Nays 1    Excused 0    Absent 0    Conflicts 0

 

02/20/2004             H Placed on General File

 

HB0204HS001/ADOPTED

Page 3-line 2                            After "To" insert "attract and".

Page 4-line 9                            Delete "five (5)" insert "three(3)".

Page 4-line 12                          After "contract" insert "." and delete balance of the line.

Page 4-lines 13 through 16       Delete entirely.

Page 5-line 2                            Delete "for not less than one (1)" insert "at least seventy percent (70%) of any contract".  SIMPSON, CHAIRMAN

 

HB0204HW001/ADOPTED

Page 1-line 1                            After "noneconomic" insert "compensatory".

Page 1-line 3                            Delete "proving" insert "providing".

Page 1-line 4                            Delete "excessive" insert "excess"; after "noneconomic" insert "compensatory".

Page 1-line 7                            After "general;" insert "requiring notice of actions and approval of the attorney general as specified; requiring information from insurers; limiting payments as specified;".

Page 2-line 24                          After "noneconomic" insert "compensatory".

Page 3-line 23                          After "any" insert "settlement or"; delete "for" insert "specifying".

Page 3-line 24                          After "noneconomic" insert "compensatory".

Page 4-line 9                            Delete "and".

Page 4-line 12                          In the standing committee amendment (HB0204HS001/A) to this line, delete "." insert "; and".

Page 4-Before line 18               Insert:

"(iii)  To notify the attorney general if any claim is made or any action is filed against the physician alleging medical injury caused by the physician which may result in a settlement or final judgment award with noneconomic compensatory damages in excess of three hundred fifty thousand dollars ($350,000.00).".

Page 4-line 18                          After "may" insert ":  (i)".

Page 4-line 21                          Delete "(i)" insert "(A)".

Page 5-line 1                            Delete "(ii)" insert "(B)".

Page 5-After line 3                               Insert:

"(ii)  Participate in settlement negotiations or intervene in any action of which he has received notice under paragraph (b)(iii) of this section."

Page 5-line 7                            After "into" insert ", and is in compliance with the terms of,".

Page 5-line 8                            After "noneconomic" insert "compensatory".

Page 5-line 12                          After "noneconomic" insert "compensatory".

Page 5-line 14                          After "." insert "Any injury that resulted in a settlement or final judgment containing an award for noneconomic compensatory damages in excess of three hundred fifty thousand dollars ($350,000.00) as a result of medical treatment provided by a physician while the physician was in compliance with the terms of an agreement with the state may be paid by the attorney general from the funds within the account created by this section.". 

Page 5-After line 14                 Insert:

(e)  If the attorney general is not notified of, or allowed to intervene in, any action for medical damages filed against a physician who has a contract with the state under this section which results in a settlement or final judgment award with noneconomic compensatory damages in excess of three hundred fifty thousand dollars ($350,000.00), the attorney general may deny payment for any noneconomic compensatory damages from the account created by this section. No proposed settlement offer containing an award with noneconomic compensatory damages in excess of three hundred fifty thousand dollars ($350,000.00) in which the attorney general intervenes may be entered into or accepted, unless:

(i)  The attorney general consents to the proposed settlement agreement; or

(ii)  The insurer providing coverage for a physician who has a contract with the state under this section:

(A)  Offers to settle a claim containing a noneconomic compensatory damage award in excess of three hundred fifty thousand dollars ($350,000.00);

(B)  Provides information of the proposed settlement agreement specifying the amount of the award that is attributable to direct economic damages, punitive damages and noneconomic compensatory damages; and

(C)  The attorney general, after reviewing the proposed settlement agreement, agrees to and approves the proposed settlement agreement.".

Page 5-line 16                          Delete "(e)" insert "(f)".

Page 5-line 19                          After "." insert "Any noneconomic compensatory damages that may be attributable to medical treatment provided by a physician deemed to be in default of an agreement with the state at the time of the treatment shall not be eligible for payment from the account created by this section, regardless of the amount of the final judgment or settlement.". 

Page 5-line 20                          Delete "shall" insert "may"; delete "recoup" insert "recover". 

Page 5-line 22                          After "were" insert "incorrectly".

Page 6-line 15                          Reinsert stricken "three (3)"; delete "five (5)". SIMPSON, NICHOLAS, ROSS

 

02/20/2004             H Passed CoW

 

HB0204H2001/ADOPTED

Page 1-line 7                            Delete "appropriation;" insert "appropriations; providing for reinsurance; providing for an actuarial study;".

Page 3-line 9                            After "assistance;" insert "reinsurance;".

Page 5-Before line 16               Insert:

"(f)  The attorney general may use funds from the account to purchase reinsurance as deemed prudent to minimize expenditures under this section.".

Page 5-line 16                          Delete the Simpson, et al committee of the whole amendment (HBO204HW001/A) to this line entirely.

Page 5-line 16                          Delete "(e)" insert (g)".

Page 6-line 21                          After "3." insert "(a)".

Page 7-After line 3                               Insert:

"(b)  There is appropriated from the general fund fifty thousand dollars ($50,000.00) for the insurance department to conduct an actuarial study to consider the benefits of reinsurance and to estimate the anticipated annual cost and terms of reinsurance under this act.".

Renumber as necessary.  SIMPSON, BUCHANAN, OLSEN

 

HB0204H2002/ADOPTED

Page 4-line 1                            After "($350,000.00)" insert "up to a maximum payment of six hundred fifty thousand dollars ($650,000.00)".

Page 5-line 14                          After the Simpson et al., committee of the whole amendment (HB0204HW001/A) to this line, insert "In any contract entered into under this section, the attorney general shall not pay more than six hundred fifty thousand dollars ($650,000.00) in noneconomic compensatory medical damages for any one (1) claim.  If a claim under this section includes an award for noneconomic compensatory medical damages in excess of the maximum amount the attorney general is authorized to pay for that claim under this section, the physician shall remain liable for the amount of the award over the maximum that may be paid by the attorney general.".  COHEE

 

HB0204H2003/ADOPTED  (CORRECTED COPY)

Page 1-line 7                            Before "and" insert "requiring a study and report; making implementation of the program subject to further legislative action;"; after "for" delete "an".

Page 1-line 8                            Delete "date" insert "dates".

Page 3-line 3                            After "physicians" insert ", particularly physicians with critical medical practice specialties,".

Page 5-line 3                            After "section" insert ",  unless the physician is practicing medicine only in Wyoming and only at a less than full-time capacity".

Page 7-After line 3                               Insert:

"Section 4.  

(a)  The Wyoming health care commission shall conduct, or cause to be conducted, an economic study and analysis of the costs and benefits to the state and its citizens provided by this act.  The commission shall report its findings to the joint labor, health and social services interim committee no later than October 1, 2004.

(b)  The attorney general shall not enter into any contract authorized under W.S. 9-2-126 as created by this act until the report required by this section is considered by the joint labor, health and social services interim committee and the legislature has taken further action in the 2005 general session authorizing the attorney general to implement this act.".

Page 7-line 5                            Delete "4." Insert "5.".

Page 7-line 6                            Delete "2004" insert "2005".

Page 7-line 9                            Delete entirely and insert:

"Section 6.  

(a)  Except as provided in subsection (b) of this section, this act is effective July 1, 2005.

(b)  Section 4 of this act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.".  OSBORN

 

HB0204H2004/ADOPTED

Page 3-line 3                            After "physicians" insert ", particularly physicians with critical medical practice specialties,".

Page 4-line 12                          After "contract" insert ", as provided in subsection (d) of this section".

Page 5-line 3                            After "section" insert ", unless the physician is practicing medicine only in Wyoming and only at a less than full-time capacity".

Page 5-Before line 5                 Insert:

"(d)  As part of the agreement required under paragraph (b)(ii) of this section, a physician shall agree to provide medical care for the period of the contract in underserved areas of the state and shall accept patients qualified under the Medical Assistance and Services Act and the child health insurance program who seek medical care which the physician is qualified to provide. The department of health, in consultation with the state board of medicine, shall determine which areas of the state are underserved and which medical specialties are most needed in each underserved area. The department shall provide the information to the attorney general who shall consider that information in determining whether to enter into a contract with a physician under this section.".

Page 5-After line 14                 In the Simpson et al., committee of the whole amendment (HB0204HW001/A) to this line, in the first sentence of (e)(intro) created by this amendment, after "or allowed to" insert "participate in settlement negotiations or"; in the second sentence, delete "in which the attorney general intervenes".

Renumber as necessary.  SIMPSON

 

02/24/2004             H Passed 2nd Reading

 

HB0204H3001/FAILED

Page 6-line 22                          After "the" delete balance of line and insert "health care commission".

Page 6-line 23                          Delete entirely.

Page 6-line 24                          Delete the line through "purposes" insert "one hundred thousand dollars ($100,000.00) to conduct the study required under section 4".

Page 7-line 1                            After "act" delete balance of line and insert ".".

Page 7-lines 2 and 3                 Delete entirely.  OSBORN

 

HB0204H3002/ADOPTED

Delete the standing committee amendment (HB0204HS001/A) entirely.

Delete the Simpson et al., committee of the whole amendment (HB0204HW001/A) entirely.

Delete the Simpson et al., second reading amendment (HB0204H2001/A) entirely.

Delete the Cohee second reading amendment (HB0204H2002/A) entirely.

Delete the Osborn second reading amendment (HB0204H2003/AC) entirely.

Delete the Simpson second reading amendment (HB0204H2004/A) entirely.

Delete the Osborn third reading amendment (HB0204H3001/A) entirely.

Further amend as follows:

Page 1-line 1                            After "noneconomic" insert "compensatory".

Page 1-line 3                            Delete "proving" insert "providing".

Page 1-line 4                            Delete "excessive" insert "excess"; after "noneconomic" insert "compensatory".

Page 1-line 7                            Delete "providing an appropriation;" insert "requiring notice of actions and approval of the attorney general as specified; requiring information from insurers; limiting payments as specified; providing appropriations; providing for reinsurance; providing for an actuarial study;".

Page 2-line 24                                        After "noneconomic" insert "compensatory".

Page 3-line 2                            After "To" insert "attract and".

Page 3-line 3                            After "physicians" insert ", particularly physicians with critical medical practice specialties,".

Page 3-line 9                            After "assistance;" insert "reinsurance;".

Page 3-line 23                          After "any" insert "settlements or"; delete "for" insert "specifying".

Page 3-line 24                          After "noneconomic" insert "compensatory".

Page 4-line 1                            After "($350,000.00)" insert "up to a maximum payment of six hundred fifty thousand dollars ($650,000.00)".

Page 4-line 4                            Delete "assistance" insert "payments".

Page 4-line 9                            Delete "five (5)" insert "four (4)"; delete "and".

Page 4-line 12                          After "contract" delete balance of line and insert ", as provided in paragraph (vi) of this subsection;".

Page 4-lines 13 through 16       Delete entirely.

Page 4-After line 16                 Insert:

"(iii)  To notify the attorney general if any claim is made or any action is filed against the physician alleging medical injury caused by the physician which may result in a settlement or final judgment award with noneconomic compensatory damages in excess of three hundred fifty thousand dollars ($350,000.00);

(iv)  To allow the attorney general to participate in any action, including any settlement negotiations, that may occur as a result of any claim made as specified in paragraph (iii) of this subsection;

(v)  To maintain primary insurance coverage in each specialty area the physician will practice under his agreement with the state; and

(vi)  To provide medical care for the period of the contract in underserved areas of the state and to accept patients qualified under the Medical Assistance and Services Act and the child health insurance program who seek medical care which the physician is qualified to provide.

(c)  The department of health, in consultation with the state board of medicine, shall determine which areas of the state are underserved and which medical specialties are most needed in each underserved area. The department shall rank the cities, towns and counties of the state based on numbers of physicians, specialty practice areas available within the area and the number of persons enrolled in the Medical Assistance and Services Act and the children health insurance program, with highest priority given to areas with the most need based on that criteria. The department shall provide the information to the attorney general who shall consider that information and available funds in the noneconomic medical damages payments account in determining whether to enter into a contract with a physician under this section.".

Page 4-line 18                          Delete "(c)" insert "(d)"; after "may" insert ": (i)".

Page 4-line 21                          Delete "(i)" insert "(A)".

Page 5-line 1                            Delete "(ii)" insert "(B)".

Page 5-line 2                            Delete "for not less than one (1)" insert "at least seventy percent (70%) of any contract"; after "year" insert ", or any physician practicing medicine only in Wyoming on a less than full-time basis,".

Page 5-After line 3                               Insert:

"(ii)  Participate in actions, including settlement negotiations in any action, of which he has received notice under paragraph (b)(iii) of this section.".

Page 5-line 5                            Delete "(d)" insert "(e)".

Page 5-line 6                            After "." insert "Subject to other provisions of this section,".

Page 5-line 8                            After "judgment" insert "or settlement"; after "noneconomic" insert "compensatory".

Page 5-line 11                          Delete "may" insert "shall".

Page 5-line 12                          After "noneconomic" insert "compensatory".

Page 5-line 14                                        After "." insert "In any contract entered into under this section, the attorney general shall not pay more than six hundred fifty thousand dollars ($650,000.00) in noneconomic compensatory medical damages for any one (1) claim.  If a claim under this section includes an award for noneconomic compensatory medical damages in excess of the maximum amount the attorney general is authorized to pay for that claim under this section, the physician shall remain liable for the amount of the award over that maximum.".

Page 5-After line 14                             Insert:

"(f)  The attorney general may use funds from the account to purchase reinsurance as deemed prudent to minimize expenditures under this section.".

Page 5-line 16                                          Delete "(e)" insert "(g)".

Page 5-line 19                                        After "." insert "Any noneconomic compensatory damages that may be attributable to medical treatment provided by a physician deemed to be in default of an agreement with the state at the time of the treatment shall not be eligible for payment from the account created by this section, regardless of the amount of the final judgment or settlement.".

Page 5-line 20                                        Delete "shall" insert "may"; delete "recoup" insert "recover".

Page 5-line 22                                        After "were" insert "incorrectly".

Page 6-line 15                                          Delete "five (5)" insert "four (4)".

Page 6-line 21                                          After "3." insert "(a)".

Page 7-line 2                                            Delete "9-2-126(d)" insert "9-2-126(e)".

Page 7-After line 3                                               Insert:

"(b)  There is appropriated from the general fund fifty thousand dollars ($50,000.00) for the insurance department to conduct an actuarial study to consider the benefits of reinsurance and to estimate the anticipated annual cost and terms of reinsurance under this act.".  SIMPSON

 

02/25/2004             H Passed 3rd Reading

 

ROLL CALL

Ayes:  Representative(s) Alden, Bagby, Berger, Brechtel, Buchanan, Childers, Cooper, Diercks, Edwards, Esquibel, Gentile, Gilmore, Hageman, Harshman, Hastert, Hinckley, Illoway, Jansen, Johnson, W., Law, Luthi, Martin, Miller, D., Nicholas, Olsen, Parady, Petersen, Philp, Powers, Reese, Robinson, Ross, Simpson, Slater, Thompson, Walsh and Warren.

Nays:  Representative(s) Anderson, R., Baker, Bucholz, Cohee, Harvey, Iekel, Jones, Jorgensen, Landon, Latta, Lockhart, McMurtrey, McOmie, Meuli, Morgan, Osborn, Prosser, Semlek, Wasserburger and Wostenberg.

Excused:  Representative(s) Tipton

Conflicts:  Representative(s) Johnson, L. and Meyer.

Ayes 37    Nays 20    Excused 1    Absent 0    Conflicts 2

 

02/26/2004             S Received for Introduction

02/26/2004             S Introduced and Referred to S01

03/01/2004             S01 Recommended Amend and Do Pass

 

ROLL CALL

Ayes:  Senator(s) Burns, Decaria, Goodenough, Hanes and Meier

Ayes 5    Nays 0    Excused 0    Absent 0    Conflicts 0

 

03/01/2004             S Placed on General File

03/05/2004             Died in CoW