79R7528 AJA-D
By: Hopson H.B. No. 1665
A BILL TO BE ENTITLED
AN ACT
relating to a study of the effectiveness of rate regulation for
medical malpractice insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article 5.15-1, Insurance Code, is amended by
adding Section 12 to read as follows:
Sec. 12. RATE STUDY. (a) The department shall perform a
study of the rates charged for professional liability insurance or
coverage for physicians and health care providers in this state on
and after September 1, 2005, and before August 1, 2006, to determine
the effectiveness of legislation enacted by the 78th Legislature,
Regular Session, 2003, relating to regulation of rates for
professional liability insurance or coverage for physicians and
health care providers and tort liability of physicians and health
care providers, in ensuring that those rates are not unreasonably
high for the insurance coverage provided or unreasonably low for
the insurance coverage provided and insufficient to sustain
projected losses and expenses.
(b) To perform the study required by this section, the
department may use any information filed by an insurer under this
code. The commissioner may request that an insurer provide any
additional information that would assist the department in
performing the study. The commissioner shall request that the
joint underwriting association established under Article 21.49-3
of this code, any self-insurance trust organized under Article
21.49-4 of this code, and any other person or entity offering or
providing professional liability insurance or coverage for
physicians and health care providers in this state provide
sufficient information to assist the department in fully analyzing
the effect of the legislation described by Subsection (a) of this
section on rates for professional liability insurance or coverage
for physicians and health care providers.
(c) On the third anniversary of the passage of the
constitutional amendments concerning civil lawsuits against
doctors and health care providers (Proposition No. 12, September
13, 2006), the commissioner shall:
(1) provide a written report to the governor, the
lieutenant governor, and the speaker of the house of
representatives of the results of the study, specifying databases
used, methodology employed, and any actuarial assumptions made in
the creation of the report, identifying each person or entity to
whom the department made a request under Subsection (b) of this
section who refused or otherwise did not comply with the request,
and providing the department's recommendations for any statutory
changes that would more effectively ensure that rates for
professional liability insurance or coverage for physicians and
health care providers are not unreasonably high for the insurance
coverage provided or unreasonably low for the insurance coverage
provided and insufficient to sustain projected losses and expenses;
and
(2) post the report on the department's Internet
website.
(d) This section expires September 1, 2007.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.