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September ProVisions

September 2023

Monitoring the MPL Legislative Environment


Table of Contents

About This Issue...

Monitoring the Legislative Environment 

Several bills with significant implications for the medical liability industry have been proposed so far in 2023—with many also being signed into law.

A common theme in 2023 has been the review and adjustment of damage caps at the state level. In many states damage caps have been on the books since the 1970s or 1980s, with critics noting these figures are not appropriate in today’s economic setting. While MICRA in California was the most often discussed of these cases in 2022, since then Nevada, Maine, Rhode Island, and others have proposed adjustments.

Data security, litigation funding, and wrongful death regulation are also common topics, with many states proposing new rules and regulations. We have compiled a list of bills signed into law so far this year, which helps to highlight the common issues discussed at the state level.

Judicial action has also opened the doors for increased legislative activity at the state level. In the wake of Dobbs v. Jackson Women’s Health Organization, many states have proposed and/or passed legislation to alter access to abortions. Now that we are over a year past that court decision, some trends in legislation are beginning to emerge, and we are also seeing an impact on patients. Mallory Earley, Regional Risk Manager, will discuss that impact in more detail in this issue.

In summary, there are several high-level legislative trends to monitor as 2023 winds to a close and congressional representatives prep for 2024. We will continue our efforts to monitor state and federal changes that could impact the medical liability market. We will also keep you informed so you can have productive conversations on these changes with your clients. As always, if there are key issues in your state that you would like to discuss, our regional teams are happy to set up a call to review your questions in more detail.

Dobbs v. Jackson – One Year Later

By Mallory Earley, Southeast Regional Manager, Risk Management 

Dobbs Article-01

In the one year since the Dobbs v. Jackson Women’s Health Organization decision overturning the constitutional right to an abortion, individual states have responded in various ways. Prior to the Dobbs decision, 22 states had a ban on abortions at a specific gestational age ranging from the first through second trimesters. However, many of these bans could not be enforced due to the federal standard put in place by Roe v. Wade, stating an individual’s right to abortion before fetal viability was protected by the 14th amendment to the Constitution. In the wake of the Dobbs decision, several states made immediate changes to laws governing abortion rights, while others continue to litigate and use state legislatures to advance changes to state abortion laws.1,2

One year after the Dobbs decision, the number of states with a pre-viability ban jumped to 25 with various exceptions and limitations regarding gestational age. Some of the more complicating issues that become apparent when examining these abortion bans are the various exceptions allowing the procedure. These exceptions include: a risk of death or serious harm to the mother, a pregnancy due to rape or incest, or the presence of a fetal anomaly.3 Although some states focus on gestational age as a measuring point when considering abortion bans, other states have focused on enacting changes to waiting periods, consent requirements for minors, and access to abortion-inducing medications.4

Remanding these reproductive rights issues to the states has led to the creation of countless measures meant to protect or limit an individual’s right to an abortion. A close examination of states that have active legislation or that have made recent changes is the best way to gain a snapshot of where the United States stands, at the state level, on this issue.

State Spotlights

One year after the Dobbs decision, many states are left with more questions than answers now that federal protections for abortion have been lifted, leaving each state to decide on this issue.

South Carolina

The South Carolina Supreme Court held firm in August 2023 that abortion remain banned in the state after about six weeks of pregnancy. However, the definitions of “conception” and “fetal heartbeat” may be subject to further review to clarify when those terms apply to a pregnancy. Doctors are left without protection should they perform an abortion outside the roughly six-week gestational age when “cardiac activity” is detected.5,6

Texas

Texas has become one of the most restrictive states for abortion, continuing to criminalize the aiding or abetting of a pregnant mother to obtain an abortion. On August 4, 2023, a district judge ruled that the current ban in Texas against abortions was too restrictive as it did not allow for abortion when there was a serious pregnancy complication. There is widespread uncertainty for Texas physicians in knowing when complications reach a level in care where pregnancy becomes unsafe for the woman. At such point the physician would conclude that ending the pregnancy is a “good faith judgment.” However, the Texas Supreme Court immediately blocked the temporary injunction and will not enforce it.7

The state of Texas is also home to new legal arguments that bring even more complication to the matter. To illustrate, a man filed a wrongful death lawsuit against three women claiming they had helped his ex-wife obtain a medication abortion. By filing suit under the wrongful death statute instead of filing under the Texas Heartbeat Act, which allows legal action against anyone who “aids or abets” the termination of a pregnancy, the plaintiff and his counsel may be seeking to open another avenue for litigation related to abortion. This case remains in litigation.8,9

Idaho

On August 25, 2023, Idaho started enforcing the trigger ban that prohibits abortion at any stage of pregnancy unless it is necessary to save the life of the pregnant person. The exception is also applied in certain limited cases of rape or incest. Idaho cannot criminalize medical providers who perform an abortion in an emergency, pending the outcome of the Department of Justice’s lawsuit against Idaho alleging the trigger ban violates the federal Emergency Medical Treatment and Labor Act (EMTALA). There are criminal repercussions for anyone who assists a minor in leaving the state to seek an abortion without parental consent.10 However, a current injunction as of August 1, 2023, blocks the criminal prosecution of a provider who refers a patient to an out-of-state clinic for an abortion.11  

Florida

The Florida Supreme Court currently has the abortion issue under review and will determine if a six-week ban passed by the state legislature earlier this year will be triggered. The Court has not indicated when a final decision will be handed down. Currently abortion is legal for most circumstances in Florida up to 15 weeks.12

Indiana

As of August 1, 2023, Indiana State Legislature enacted a total ban on abortion when the state Supreme Court vacated the injunction that blocked the ban. Although the abortion ban is currently in effect, there is another challenge to the law with the filing of a suit which claims the plaintiffs hold “sincere religious beliefs that direct them to obtain an abortion” in certain circumstances, and the ban therefore violates the state’s Religious Freedom Restoration Act.13  

Conclusion 

In a country divided by so many issues, the right to an abortion has become another area of medical practice risk that is rooted in confusion and chaos. The ProAssurance Risk Management Department developed a task force to not only monitor state reactions and changes to laws but, more importantly, serve as a resource for those physicians and providers who are trying to deliver the best care to their patients. In the past year the department triaged a number of phone calls, emails, and questions regarding the Dobbs decision. Although those communications have slowed in the recent months, this area of risk for insureds resurfaces as various states continue to protect or expand the laws governing the right to an abortion. From Ob-gyns to fertility practices, family medicine to oncology, this potential exposure is important to recognize. ProAssurance also remains vigilant and up to date in monitoring state changes for our insureds and agency partners.

 

1. Becca Damante and Kierra B. Jones, “A Year After the Supreme Court Overturned Roe v. Wade, Trends in State Abortion Laws Have Emerged,” Center for American Progress, June 15, 2023, https://www.americanprogress.org/article/a-year-after-the-supreme-court-overturned-roe-v-wade-trends-in-state-abortion-laws-have-emerged/.

2. Usha Ranji, Karen Diep, and Alina Salganicoff, “Key Facts on Abortion in the United States,” KFF, August 29,2023, https://www.kff.org/womens-health-policy/report/key-facts-on-abortion-in-the-united-states/.

3.. “State Bans on Abortion throughout Pregnancy,” Guttmacher Institute, August 29, 2023, https://www.guttmacher.org/state-policy/explore/state-policies-later-abortions.

4.  Mabel Felix and Laurie Sobel, “A Year after Dobbs: Policies Restricting Access to Abortion in States Even Where It’s Not Banned,” KFF, June 22, 2023, https://www.kff.org/policy-watch/year-after-dobbs-policies-restricting-access-to-abortion/.

5.  James Pollard, “South Carolina’s new all-male highest court reverses course on abortion, upholding strict 6-week ban,” The Associated Press, August 23, 2023, https://apnews.com/article/south-carolina-abortion-ban-f4e0d8ef8187fdd1e8db54dd464011b9.

6. James Pollard, “South Carolina abortion ban with unclear ‘fetal heartbeat’ definition creates confusion, doctors say,” The Associated Press, updated August 25, 2023, https://apnews.com/article/abortion-ban-south-carolina-a2f515537739a0a4b16c049f90821a3f.

7. Paul J. Weber, “A judge has ruled Texas’ abortion ban is too restrictive for women with pregnancy complications,” The Associated Press, August 5, 2023, https://apnews.com/article/abortion-texas-lawsuit-ban-exceptions-women-denied-pregnancy-d90f3bce68d86e5eafe3ba4ba5939188.

8. Eleanor Klibanoff, “Women accused of facilitating abortion in Galveston wrongful-death lawsuit file countersuit,” The Texas Tribune, May 2, 2023, https://www.texastribune.org/2023/05/02/texas-abortion-wrongful-death-lawsuit/.

9. Relating to abortion, including abortions after detection of an unborn child's heartbeat; authorizing a private civil right of action, SB8, 87th Leg. (2021) https://capitol.texas.gov/BillLookup/History.aspx?LegSess=87R&Bill=SB8.

10.  “Idaho,” Center for Reproductive Rights, accessed September 8, 2023, https://reproductiverights.org/maps/state/idaho/.

11. Alanna Mayham, “Idaho attorney general blocked from punishing out-of-state abortion referrals,” Courthouse News Service, August 1, 2023, https://www.courthousenews.com/idaho-attorney-general-blocked-from-punishing-out-of-state-abortion-referrals/.

12. Regan McCarthy, “Voters could decide the future of abortion access in Florida,” NPR, August 4, 2023, https://www.npr.org/2023/08/04/1191746133/abortion-access-florida-voters-constitutional-amendment-ballot-initiative.

13. “Indiana,” Center for Reproductive Rights, accessed September 8, 2023, https://reproductiverights.org/maps/state/indiana/.

Mallory Earley INFO

 

Damage Caps

Damage Caps Article-02

Summary of enacted and outstanding legislation

This report covers enacted and pending legislation that addresses noneconomic, economic, and/or punitive damages. It does not include bills that were withdrawn, did not pass, or died in committee.

Source: MPL Association

Illinois

HJRCA 15: Pending. Last action date 5/19/2023.

This resolution proposes to amend the Illinois constitution to authorize the legislature to establish caps on damages, excluding economic damages, in medical liability claims.

Iowa

HF 161: Enacted. Signed into law 2/16/2023.

This bill clarifies that loss of childcare services is an economic damage and caps noneconomic damages in cases of severe and/or permanent injuries at $1M for individual providers and $2M if a hospital is involved (lesser injuries remain capped at $250,000). It allows for an annual 2.1% increase to both caps beginning on 1/1/2028. It modifies how damage awards collected from defendants should be distributed.

Kansas

HB 2183: Pending. Last action date 1/25/2023.

This bill would eliminate the $250,000 cap on wrongful death damages. Referred to the Committee on Judiciary.

Maine

LD 934: Enacted. Signed into law 7/6/2023.

This bill increases the limit on damages for the loss of comfort, society and companionship, and emotional distress in a case of wrongful death from $750,000 to $1M and adjusts the amount annually for inflation. It also increases the limit on punitive damages from $250,000 to $500,000 and increases from two years to three years the time after the decedent's death before a wrongful death action must be commenced.

Missouri

HB 128: Pending. Last action date 3/2/2023.

This measure would exclude long-term care facilities from the definition of healthcare provider for purposes of determining applicability of limitations on damages in MPL claims. Referred to the House General Laws Committee.

Nebraska

LB 92: Enacted. Signed into law 6/6/2023.

This bill increases the total cap on provider liability from $500,000 to $800,000 before the state compensation fund applies. Retains the total cap for both sources at $2.25M.

LB 25: Pending. Last action date 5/31/2023.

This bill would authorize punitive damages in civil actions against a party when such party has displayed actual intent to cause harm or causes an injury through action taken in reckless disregard for the lives or safety of others. Attorney General’s Opinion released on 5/31/2023.

LB 351: Pending. Last action date 2/16/2023.

This measure requires healthcare providers to carry a minimum of $10M in liability coverage per occurrence, and up to $20M per year ($30M per year for hospitals). It removes limits on the amounts payable by the state Excess Liability Fund and limits annual payments from the Fund to $30M and requires the Fund to complete payments in excess of that amount in future years. Sent to the Judiciary Committee.

Nevada

AB 404: Enacted. Signed into law 6/15/2023.

This bill revises provisions governing civil actions against a healthcare provider for professional negligence. It increases the cap on noneconomic damages in medical malpractice cases from $350,000 to $750,000 over five years, with step increases of $80,000 each year until January 1, 2028. Beginning January 1, 2029, the noneconomic damages cap will increase 2.1% annually.

New Jersey

S 3343: Pending. Last action date 2/22/2023.

This bill would establish caps on noneconomic damages, limitations on attorney fees, periodic payment of future damages, and legal protections for expressions of sympathy made by a healthcare professional. The bill largely reflects MICRA as amended in 2022. Sent to the Senate Judiciary Committee.

New Mexico

SB 523: Enacted. Signed into law 4/7/2023.

This bill establishes a $1M cap for medical malpractice claims brought against an independent outpatient healthcare facility that is not hospital-owned and contributes to the state patient compensation fund (PCF) starting in 2024. Beginning in 2025, the bill adds a consumer price index adjustment to the cap each year. The measure also changes requirements for independent outpatient facilities participating in the PCF to require each facility to contribute $500,000 before the PCF picks up the next $500,000 for up to the $1M cap.

New York

S 5930/A 2061: Pending. Last action date 3/22/2023.

This measure would require a certificate of merit in actions for damages, contribution, or indemnity arising out of alleged negligence of a professional licensed pursuant to the education law; establish a party in an action for medical, dental, or podiatric malpractice may not omit the name of certain experts in responding to a request; limit judgments for past and future damages in an action to recover damages for dental, medical, or podiatric malpractice; and limit compensation for noneconomic damages suffered by an injured plaintiff in any personal injury action to $250,000. Sent to the Senate Judiciary Committee and the Assembly Codes Committee.

Rhode Island

SB 1056: Enacted. Enacted into law 6/24/2023 without governor signature.

This bill raises the minimum recovery in a civil action for a wrongful death from $250,000 to $350,000.

SB 1058: Pending. Last action date 6/1/2023.

This bill would authorize punitive damages in any civil action, including wrongful death actions, if a defendant is found to have engaged in “willful or wanton conduct” or “acted with reckless disregard for the health, safety, and welfare of persons who foreseeably might be harmed by said reckless, willful, or wanton conduct.” Sent to the Senate Judiciary Committee.

Texas

HB 536: Pending. Last action date 2/23/2023.

This bill would index the state’s cap on noneconomic damages retroactively to 2003. Referred to the House Judiciary & Civil Jurisprudence Committee.

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State Laws Enacted in 2023

These are bills passed so far in 2023 that may have an impact on the medical malpractice liability insurance space.

Colorado

Bill Number: HB 23-1192

Date Signed: 6/7/2023

Effective Date: 6/7/2023

Brief Summary: This act amends the law regarding price gouging during a declared emergency disaster period. The act extends a disaster period from 180 days after the first declaration of emergency to 180 days after the final declaration of emergency expires. This bill also reenacts the “Colorado Antitrust Act of 1992” as the “Colorado State Antitrust Act of 2023.”

Bill Number: HB 23-1162

Date Signed: 6/1/2023

Effective Date: 8/7/2023

Brief Summary: This act allows the administrator of the “Uniform Consumer Credit Code” to create and adopt rules regarding deferral charges for certain consumer credit transactions that are secured by the consumer’s potential proceeds from a settlement or judgment obtained in the consumer’s associated legal claim.

Delaware

Bill Number: SB 81

Date Signed: 7/17/2023

Effective Date: 7/17/2023

Brief Summary: This legislation adds to Delaware’s Wrongful Death Act and allows a spouse, parent(s), child(ren), and sibling(s) of a deceased person to recover any punitive damages if the actions resulting in the death of another person were maliciously intended or the result of willful or wanton misconduct. The act is meant to serve as a deterrent for the party at fault from engaging in similar conduct in the future.

Florida

Bill Number: HB 487

Date Signed: 5/25/2023

Effective Date: 5/25/2023

Brief Summary: This act revises requirements for membership of the Florida Medical Malpractice Joint Underwriting Association. It also reevaluates licensure requirements for reinsurance intermediary brokers and reinsurance intermediary managers.

Bill Number: HB 837

Date Signed: 5/24/2023

Effective Date: 5/24/2023

Brief Summary: HB 837 is a broad tort reform bill related to civil remedies. It creates more regulations regarding reasonable attorney fees in most civil actions, reduces the statute of limitations for negligence, provides standards for bad faith actions, provides for the distribution of proceeds for two or more third-party claimants arising out of a single occurrence that exceed policy limits, and adds standards for evidence and disclosures related to medical expenses.

Iowa

Bill Number: HF 161

Date Signed: 2/16/2023

Effective Date: 2/16/2023

Brief Summary: This act creates a medical error task force within Iowa and addresses damages awarded against healthcare providers. The act lays out that the noneconomic damages will not exceed $250,000 unless the jury determines that there is substantial loss.

Bill Number: SF 262

Date Signed: 5/28/2023

Effective Date: 1/1/2025

Brief Summary: This act establishes the state’s consumer data protection provisions, defines related terminology, and provides for civil penalties if these protections are violated.

Illinois

Bill Number: HB 219

Date Signed: 8/11/2023

Effective Date: 8/11/2023

Brief Summary: This act amends the Wrongful Death Act in the state to allow the injured party to recover punitive damages. The act also extends the statute of limitations only against the person who allegedly committed a violent, intentional act or was the defendant charged with an enumerated crime.

Indiana

Bill Number: SB 5

Date Signed: 5/1/2023

Effective Date: 1/1/2026

Brief Summary: This state-senate based bill focuses on protecting consumer data in Indiana. It gives consumers more control regarding their personal data.

Bill Number: HB 1124

Date Signed: 4/20/2023

Effective Date: 7/1/2023

Brief Summary: This act impacts civil proceeding advance payment, or CPAP, transactions. HB 1124 provides that in a civil proceeding in which a consumer claimant has entered into a CPAP contract, the claimant or their attorney is required to give certain parties written notice that the consumer claimant has entered into a CPAP contract with a CPAP provider.

Kansas

Bill Number: SB 75

Date Signed: 4/24/2023

Effective Date: 7/1/2023

Brief Summary: This act amends an existing law that controls the legal rate of interest for civil tort actions where prejudgment interest is awarded. The rate is set at two percentage points below the rate that is calculated and published by the Kansas Secretary of State each July.

Maine

Bill Number: LD 934

Date Signed: 7/6/2023 – Not signed by governor

Effective Date: 7/6/2023

Brief Summary: This bill increases the limit on damages afforded to a claimant for the loss of “comfort, society, and companionship and emotional distress” in a wrongful death case. It raises the limit from $750,000 to $1.5M. It also increases punitive damages from $250,000 to $1M as well as increases the time after the alleged wrongful death when an action must commence from two years to three years.

Minnesota

Bill Number: HF 447

Date Signed: 5/26/2023

Effective Date: various

Brief Summary: This omnibus bill makes technical corrections to existing state statutes and creates a process for communication and resolution programs in the case of adverse healthcare outcomes. It establishes that all such communication be confidential. HF 447 also allows for a “cause of action” arising out of an injury to survive the injured person after their death.

Bill Number: SF 2909

Date Signed: 5/19/2023

Effective Date: various

Brief Summary: This act opens the lines of communication between a healthcare provider or facility and a patient involved in a healthcare incident. If the healthcare provider or facility chooses to engage in an open discussion, as provided for by the legislation, they must give written notice to the patient within 365 days from the date the incident became or should have become known.

Montana

Bill Number: SB 169

Date Signed: 5/19/2023

Effective Date: 5/19/2023

Brief Summary: This act restructures punitive damages law in Montana. It does not allow the pleading of punitive damages in an initial pleading and provides that the damages are divided equally between the alleged injured party and the state. The revision requires punitive damages awarded to Montana to be placed in the general fund.

Bill Number: SB 269

Date Signed: 5/2/2023

Effective Date: 1/1/2024

Brief Summary: SB 269 establishes the Litigation Financing Transparency and Consumer Protection Act. It creates minimum standards and disclosures for litigation financing contracts. The act requires the disclosure of any litigation financing transaction or contract in a civil action. The Montana Secretary of State does have the authority to establish administrative rules as well.

Bill Number: SB 165

Date Signed: 5/4/2023

Effective Date: 5/4/2023

Brief Summary: The Montana legislature created this act to establish a “duty of cooperation” of an insured or a third-party claimant toward an insurer when handling claims and seeking recovery of benefits from an insurance policy. The act states a breach of duty may be asserted by an insurer as an affirmative defense. SB 165 also allows an insurer to present evidence concerning an insured’s or third party’s conduct in any cause of action against an insurer.

Bill Number: SB 236

Date Signed: 5/2/2023

Effective Date: 5/4/2023

Brief Summary: The act establishes standards that must be satisfied by a third-party claimant when delivering a written, time-limited demand to an insurer. It requires a third-party claimant to provide all available and supporting documents. SB 236 also provides a reasonable amount of time for an insurer to conduct a timely investigation and evaluate the presented claims without the risk or exposure of an unfair claim settlement practice or insurance bad faith claim asserted against the insurer.

Nebraska

Bill Number: LB 92

Date Signed: 6/6/2023

Effective Date: 6/6/2023

Brief Summary: This sweeping act includes an impact to the state’s cap limit. It increases the total cap on provider liability from $500,000 to $800,000 before the state compensation applies. It does retain the total cap from the combined sources to $2.25M.

New Hampshire

Bill Number: SB 65

Date Signed: 6/20/2023

Effective Date: 7/1/2023

Brief Summary: The act repeals the section of law on screening panels for medical injury claims.

New Mexico

Bill Number: SB 523

Date Signed: 4/7/2023

Effective Date: 4/7/2023

Brief Summary: This act amends the medical malpractice act in the state of New Mexico and changes the limitation of recovery for certain claims against facilities that are not controlled by hospitals. The act sets limits for the amount of money a person or persons can be awarded from medical malpractice cases against independent providers.

Nevada

Bill Number: AB 404

Date Signed: 6/15/2023

Effective Date: 10/1/2023

Brief Summary: The Nevada legislature used this act to increase the limits on the noneconomic damages a plaintiff can be awarded in a civil action against a healthcare provider for professional negligence. The act requires the amount to be increased to $350,000 and increase by $80,000 every January 1 starting in 2024 and ending on January 1, 2028, when it reaches $750,000. And starting January 1, 2029, the damages will increase by 2.1% each year. The act also revises the statute of limitations for bringing an action against a healthcare provider.

Bill Number: AB 76

Date Signed: 5/30/2023

Effective Date: 7/1/2023

Brief Summary: AB 76 increases the maximum amount recoverable as costs for reasonable fees of an expert witness. The amount increases to $15,000 for each expert witness, not to exceed five witnesses to a prevailing party.

New York

Bill Number: S 4007

Date Signed: 5/3/2023

Effective Date: 5/3/2023

Brief Summary: This act enacts large components of legislation crucial for the state health and mental hygiene budget for the 2023-2024 state fiscal year. It relates to the annual growth of the Department of Health state funds and Medicaid funding. The act also extends varying provisions of state laws relating to healthcare services and the healthcare reform act.

Oregon

Bill Number: SB 619 

Date Signed: 6/18/2023

Effective Date: 1/1/2024

Brief Summary: SB 619 pertains to the protections of personal data of consumers.  

Bill Number: SB 31 

Date Signed: 5/8/2023

Effective Date: 5/8/2023

Brief Summary: The act requires the state Director of Employment Department to determine the solvency of Paid Family and Medical Leave Insurance Fund for the purposes of paying benefits and grant awards. It also specifies timelines the director make solvency determinations and will begin granting awards and pay benefits once a fund is determined solvent.  

Bill Number: SB 310 

Date Signed: 5/19/2023

Effective Date: 9/24/2023

Brief Summary: SB 310 increases the civil penalty the Attorney General can gain for violations of the antitrust statutes in Oregon. The amount increased from $250,000 to $1M. The act also allows the Attorney General to criminally prosecute and seek civil penalties for violating the antitrust statutes. The criminal penalties have also increased from a maximum of $6,250 fine and 364 days’ imprisonment to a maximum fine to $250,000 and 10 years’ imprisonment.  

Pennsylvania

Bill Number: HB 739

Date Signed: 6/14/2023

Effective Date: 6/14/2023

Brief Summary: The act presents regulations of insurers and related people who provide for insurance data security. Derived from legislation developed by the National Association of Insurance Commissioners, the act establishes standards for data security, cybersecurity investigations, and notification to the Commissioner of cybersecurity events.

Rhode Island

Bill Number: SB 1056

Date Signed: Not signed by governor

Effective Date: 6/24/2023

Brief Summary: This act will raise the minimum recovery in a civil action to recover for a wrongful death to $365,000. The amount will automatically increase for inflation each year on January 31.

Tennessee

Bill Number: HB 1181

Date Signed: 5/11/2023

Effective Date: 7/1/2025

Brief Summary: This act is effective for businesses that control or process personal data of at least 100,000 consumers or for those who control or process personal data of at least 25,000 consumers and earn more than 50% of gross revenue from the sale of that data. HB 1181 limits the collection of personal data and provides for other business responsibilities.

Texas

Bill Number: HB 4

Date Signed: 6/18/2023

Effective Date: 7/1/2024

Brief Summary: The act addresses the disclosure and protection of consumers’ personal data. It regulates the collection, use, processing, and treatment of consumers’ personal data and imposes a civil penalty.

Washington

Bill Number: HB 1155

Date Signed: 4/27/2023

Effective Date: 7/23/2023

Brief Summary: HB 1155 provides protection for Washington state residents’ health data. The act requires additional disclosures and consent from consumers about collecting, using, and sharing their data. It also gives consumers the power to delete their data and prohibits the selling of consumer health data without authorization.

PA Superior Court: Advances in Technology May Mitigate the Need for Venue Transfers

Pennsylvania Article

In our May 2023 issue of ProVisions, we reported on the Pennsylvania Supreme Court’s reversal of a key 20-year-old Medical Care Availability and Reduction of Error Act (MCARE) reform. This ruling went into effect in January 2023, returning medical malpractice venue rules to those in effect before the reform. Earlier this year, a venue change order was appealed to the Pennsylvania Superior Court (the “Court”)—reversing a judge’s order in the Court of Common Pleas of Philadelphia County, Civil Division, to transfer a personal injury case (Ehmer v. Maxim Crane Works) from Philadelphia to the plaintiff’s home county of Columbia. The defendant argued that a move to Columbia County would provide easier access to his medical records as well as the scene of the accident. They also argued a trial in Philadelphia would pose a hardship to three of their witnesses. 

Citing precedent, the Court affirmed that a plaintiff’s choice of forum “is entitled to great weight, and must be given deference by the trial court” but may be overridden if the defendant proves “with detailed information on the record” that the forum is oppressive. The Court found that the defendant’s petition for the venue change did not sufficiently meet its burden to warrant the change of venue. They cited a prior Court ruling that there is “a vast difference between a finding of inconvenience and one of oppressiveness.” 

Additionally, the Court noted in its opinion that “since technology allows the quick and easy transfer of medical records, the initial location of the records is not a factor that establishes the need” for a change in forum. 

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It can be a difficult balance treating patients’ pain while also taking crucial steps to avoid misuse, abuse, dependence, and overdose of opioids. In the context of treatment for chronic pain, addictive behaviors may be particularly difficult to identify. Providers must recognize “red flags” and signals of misuse, abuse, or dependence.

That’s why we’ve partnered with Sure Med Compliance.

Their mission is to end the overdose epidemic through greater prescribing compliance. Sure Med addresses this by offering the first and only digital health platform scientifically validated to mitigate risk to both patient and provider in pain management settings. By delivering clinical insights that help influence safer prescribing decisions, we can help protect healthcare providers from liability and allow doctors to create safer exposures to controlled substances.

The Sure Med program is available to ProAssurance insureds at no additional cost.

Overview

Sure Med recognized a point-of-care problem: to initiate or continue controlled substance therapy legally, a physician must determine and document up to 26 data points in a five- to 10-minute office visit. This may not be feasible for busy doctors, so it may not get done. The unintended consequences may lead to poor outcomes and provider liability.

With Sure Med’s digital health platform, the patient is evaluated electronically, and the results are delivered immediately to their Electronic Health Record. This eliminates 80% of the time needed to determine and document the necessary data points before initiating or continuing controlled substance therapy.

Through our exclusive affiliation with Sure Med, ProAssurance is at the forefront of helping physicians to prescribe more responsibly, leading to better outcomes for patients. We want to encourage our insureds who regularly prescribe opioids, especially for chronic pain, to learn how Sure Med can help them develop and maintain safe and responsible prescribing practices. These practices, in turn, should lead to better outcomes for their patients.

By partnering with companies dedicated to new technologies and innovation that benefit patients and improve lives, ProAssurance is able to reduce provider risk and ultimately protect others. It is an intersection of potential that aligns with our purpose.

Visit ProAssurance.com/SureMedCompliance for more information and download the new flyer to share with your clients.

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News & Updates
Nevada Regulator Has Concerns About State Law that Excludes Defense Costs

Nevada’s insurance commissioner has “grave concerns” about insurers leaving the state because of recent legislation that prohibits them from issuing policies that reduce liability limits by defense costs. Assembly Bill 398, which Nevada Governor Joe Lombardo signed in June and which takes effect Oct. 1 for all new and renewed policies, caught many in the industry by surprise.

According to the letter the legislation is expected to impact lines including but not limited to medical liability; errors and omissions and other professional liability policies; directors and officers; cyber liability; employment practices liability; pollution and environmental impairment; fiduciary liability; construction defects; products and clinical trial liability; and excess and umbrella policies. (Business Insurance)

Read more →

Florida Supreme Court Allows Early Dismissal of Medical Malpractice Cases

Until July 2023, a defendant in many medical cases had to wait until the end of a trial to appeal a motion to dismiss a suit based on the plaintiff expert’s qualifications. On July 6 the Supreme Court unilaterally changed the rules of appellate procedure. Now the defense can call a time-out and move for an interlocutory appeal when a lower court denies a motion to dismiss. (Claims Journal)

Read more →

Virginia Judge Says Medical Malpractice Law Does Not Apply to Sexual Abuse Claims

Most of the claims of sexual abuse and other mistreatment made in a lawsuit by dozens of former patients of a Virginia children's hospital can move forward, a judge has ruled. The judge rejected arguments that many of the allegations were time-limited under the state's medical malpractice law. (Insurance Journal)

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Physicians Sue to End Implicit Bias Training Requirement in California

Two physicians and a nonprofit group have filed a lawsuit against the Medical Board of California to stop it from enforcing a state requirement that physicians study the role of implicit bias in health inequities. A California state law that took effect Jan. 1, 2022, requires medical professionals to study implicit bias as part of the 50 hours of continuing education they are required to take every two years to renew their license to practice. (Becker’s Hospital Review)

Read more →

Montana Governor Signs Reform Package Aimed at Lowering Insurance Costs

Montana Governor Greg Gianforte approved three legal reform measures intended to provide consumer protections and disclosures and reduce frivolous lawsuits. The ultimate goal of the measures is lowering costs and increasing the availability of insurance.

The signed legislation includes:

  • SB 165: Provides for insurance claims cooperation/affirmative defense for insurers and the elimination of third-party common law bad faith.
  • SB 236: Requires that time-limited settlement demand letters reasonably describe the claim, include relevant records, and allow 60 days for acceptance.
  • SB 269: Requires third-party litigation financing entities to disclose their involvement to all parties and the court.

(Insurance Journal)

Read more →

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A Crossroads for Cross-Selling

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For years I ignored the pressure from my company to cross-sell. I had several reasons (okay, they were excuses).

I consistently exceeded my sales quota by concentrating on selling the company's total hip and knee implants. Thousands of items were in the catalog, but I didn't want to divert my attention from these lucrative products.

Another reason was that I feared being perceived as greedy by surgeons when I already had their high-volume business. A few even said they wanted to share the wealth by giving their non-joint business to other sales reps.

A third rationale was that I didn't know most of the other products well enough to sell them, and I didn't feel it was worth the time. When I did cross-sell, I selected a few unique products and only approached customers I felt would be interested. I believed I knew my surgeons well enough to make that judgment—until one proved that I didn't know them as well as I thought.

Mark was a joint replacement surgeon I had done business with for over a decade, and we were also friends who socialized outside of work. He shied away from new procedures and products, instead relying on the tried-and-true he had used since his residency. A few times each year Mark performed revision hip surgery, which involves removing an existing hip implant and replacing it with a new one. When bone cement anchors the original implant, the surgery is more challenging because removing the old cement is tedious and risks perforating or fracturing the femur. My company sold a product that simplified removing the old cement, but conceptually it was counterintuitive. It required injecting new bone cement into the bone to bond with the existing cement. Many surgeons balked at the premise of adding more cement because if the removal system failed they'd have twice as much to chisel out by hand.

When I mentioned the product casually to Mark one day, he scoffed and said, "That's a crazy idea." I decided to leave well enough alone and didn't try to sell him on the concept.

About a year later I was staffing my company's booth at an orthopedic meeting when Mark, who had been exploring the exhibits, rushed up to me with a stern expression. "I'm a bit angry with you,” he said. “I was walking around your booth and discovered you have a system for removing bone cement that's been available for years. Why didn't you ever show it to me?"

Feeling defensive, I reminded Mark of the brief exchange we had. "I mentioned the product to you, and when I described adding more cement to the femur you thought it was a crazy idea. So I let it go. You didn't seem interested."

He responded, "You never showed me the product! Look, I know I’m a creature of habit, and you know how I do things. But it’s not your job to decide whether or not I’ll like a product. Your job is to keep me informed and to let me decide what's right for my patients and me. Okay?"

Eventually Mark used the cement removal system and, much to my surprise, he loved it.

I learned a valuable lesson: Cross-selling is essential to selling in healthcare. It demonstrates a higher level of professionalism by keeping clients informed and getting them to consider situations and needs they’d otherwise dismiss. It also avoids the embarrassment of a client learning about a product/service on their own.

One more thing—cross-selling offers the added benefit of increased sales and commissions, and that's what I call a true win-win!

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Written by Mace Horoff of Medical Sales Performance.

Mace Horoff is a representative of Sales Pilot.  He helps sales teams and individual representatives who sell medical devices, pharmaceuticals, biotechnology, healthcare services, and other healthcare-related products to sell more and earn more by employing a specialized healthcare system.

Have a topic you’d like to see covered? Email your suggestions to AskMarketing@ProAssurance.com.

 

 

ProAssurance Welcomes Michele Crum

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We are pleased to announce that Michele Crum, MSM, MSN, RN, CPHRM, FASHRM, has joined ProAssurance as Northeast Regional Risk Manager, effective August 21, 2023.

Michele has nearly four decades of healthcare and risk management experience and is currently president-elect for the Pennsylvania Association of Health Care Risk Management (PAHCRM).

She has been a nurse for 39 years, specializing in maternal-child health and working in pediatric rehabilitation, home care, and her personal favorite, neonatal intensive care. She transitioned to risk management in 2006 at a 600-bed community hospital in Lancaster, Pennsylvania, and became manager of the department in 2017. In running the day-to-day operations for the department, she grew a strong team of fellow risk managers and doubled the number of reported events received. 

Michele has also worked in loss prevention and claim management. She is a Certified Professional in Healthcare Risk Management (CPHRM) and, at the national level, is a fellow at the American Society for Healthcare Risk Management (ASHRM). She has presented at the New England Chapter of ASHRM twice on electronic medical records, discovery, and the legal medical record. With her two masters degrees—one in nursing and one in management—Michele is an accomplished healthcare and risk management professional who is a great addition to ProAssurance.

You can reach Michele directly at 717-431-4345 or MicheleCrum@ProAssurance.com.

Please join us in welcoming Michele to ProAssurance and wishing her success in her new role.

Recent Rate Changes Effective 10/1/2023

We are committed to responsible pricing that reflects the current risk environment. In keeping with our commitment to apprise you of developments within your market, we would like to share with you our recently updated rate strategies for Pennsylvania and Louisiana. Upon recent review of our rate plan and rating factors, it was determined that the following changes may impact NORCAL insureds:

PENNSYLVANIA

  • Revised Limits of Coverage factors
  • Revised Suspension of Coverage rule
  • Revised Territory factors
  • Increased premium charge for vicarious liability for each healthcare professional not individually insured on the policy
  • Updated medical specialties and classes
  • Overall rate impact of 9.72%, not applicable to all insureds

LOUISIANA

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  • Revised Limits of Coverage factors
  • Revised Suspension of Coverage rule
  • Increased premium charge for vicarious liability for each healthcare professional not individually insured on the policy
  • Update to Per Exposure Rating Factors
  • Updated medical specialties and classes
  • Updates to who is eligible for the Part-Time Discount and the amount of discount available
  • Updates to the New-to-Practice Discount
  • Elimination of the Group Size Discount
  • Overall rate impact of 19.4%, not applicable to all insureds

These changes, which have been filed and approved, go into effect October 1, 2023, and are applicable to new and renewal accounts. We will notify affected policyholders of the changes.
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