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A BILL TO BE ENTITLED
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AN ACT
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relating to health care liability insurance for certain nursing |
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facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 242, Health and Safety |
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Code, is amended by adding Section 242.0337 to read as follows: |
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Sec. 242.0337. LIABILITY INSURANCE COVERAGE REQUIRED. (a) |
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In this section: |
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(1) "Governmental unit" has the meaning assigned by |
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Section 101.001, Civil Practice and Remedies Code. |
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(2) "Health care liability claim" has the meaning |
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assigned by Section 74.001, Civil Practice and Remedies Code. |
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(b) To hold a license under this chapter, a nursing facility |
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must maintain professional liability insurance coverage against |
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the liability of the facility or the facility's employees for a |
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health care liability claim. |
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(c) The insurance coverage maintained by a nursing facility |
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under this section: |
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(1) must provide coverage annually in the minimum |
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amount of $300,000 per occurrence and $1 million aggregate, except |
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as provided by Subsection (d); |
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(2) must be written on an occurrence basis; |
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(3) must be issued by: |
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(A) an insurer authorized to write professional |
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liability insurance in this state; |
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(B) the Texas Medical Liability Insurance |
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Underwriting Association established under Chapter 2203, Insurance |
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Code; or |
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(C) an eligible surplus lines insurer in |
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accordance with Chapter 981, Insurance Code; |
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(4) may not include the cost of defense of a claim |
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under the coverage in the coverage's liability limit; and |
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(5) must be in a form acceptable to the commission. |
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(d) For a nursing facility owned and operated by a |
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governmental unit, the insurance coverage maintained by the |
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facility must provide coverage only to the extent of the |
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governmental unit's liability under Section 101.023, Civil |
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Practice and Remedies Code. |
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(e) A management company that manages a nursing facility |
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owned by a governmental unit shall maintain professional liability |
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insurance coverage against the liability of the management company |
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or the company's employees for a health care liability claim as |
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described by Subsection (c). The coverage required by this |
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subsection is in addition to the insurance coverage maintained by |
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the facility under Subsection (b). |
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(f) To the extent permitted by federal law and applicable |
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state and federal rules, the cost of insurance coverage required to |
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be maintained under this section is an allowable cost for |
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reimbursement under the state Medicaid program. |
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SECTION 2. This Act takes effect September 1, 2019. |