Amendment SA1-SB393

LRBa1274/1

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2005 - 2006 LEGISLATURE

SENATE AMENDMENT 1, TO 2005 SENATE BILL 393

November 4, 2005 - Offered by Committee on Agriculture and Insurance.

SB393-SA1,1,1 At the locations indicated, amend the bill as follows:

SB393-SA1,1,4 1. Page 1, line 4: after "cases" insert ", health care liability insurance limits, and payment by the injured patients and families compensation fund of noneconomic damages in installments".

SB393-SA1,1,5 2. Page 2, line 1: before that line insert:

SB393-SA1,1,6 " Section 1b. 619.01 (7) (a) of the statutes is amended to read:

SB393-SA1,2,16 619.01 (7) (a) Primary coverage plans. Health care liability insurance plans established under this paragraph shall provide minimum coverage to insureds in the amount of not less than $200,000 for each occurrence and $600,000 for all occurrences in any one policy year for occurrences before July 1, 1987, $300,000 for each occurrence and $900,000 for all occurrences in any one policy year for occurrences on or after July 1, 1987, and before July 1, 1988, $400,000 for each occurrence and $1,000,000 for all occurrences in any one policy year for occurrences on or after July 1, 1988, and before July 1, 1997, and for health care providers specified in s. 655.002 (1) (d) to (j) $1,000,000 for each occurrence and $3,000,000 for all occurrences in any one policy year for occurrences on or after July 1, 1997, and for health care providers specified in s. 655.002 (1) (a) to (c) and (2) $1,000,000 for each occurrence and $3,000,000 for all occurrences in any one policy year for occurrences on or after July 1, 1997, and before July 1, 2006, and $750,000 for each occurrence and $2,250,000 for all occurrences in any one policy year for occurrences on or after July 1, 2006, for the protection of persons who are legally entitled to recover damages from the insured for errors, omissions, or neglect in the performance of the insured's professional services. If an insured has excess limits liability coverage or such coverage is available to the insured, the coverage provided under such plans shall be equal to the minimum level of such excess limits coverage. If the insured does not have excess limits liability coverage and such coverage is not available to the insured, the commissioner may establish minimum levels of coverage higher than the minimum limits specified in this paragraph for such plans.".

SB393-SA1,2,17 3. Page 2, line 1: delete " Section 1" and substitute "Section 1c".

SB393-SA1,2,18 4. Page 2, line 9: after that line insert:

SB393-SA1,2,19 " Section 1e. 655.23 (4) (b) 2. a. of the statutes is amended to read:

SB393-SA1,2,24 655.23 (4) (b) 2. a. For occurrence coverage for health care providers under s. 655.002 (1) (a) to (c) and (2), at least $1,000,000 for each occurrence and $3,000,000 for all occurrences in any one policy year for occurrences on or after July 1, 1997, and before July 1, 2006, and $750,000 for each occurrence and $2,250,000 for all occurrences in any one policy year for occurrences on or after July 1, 2006.

SB393-SA1, s. 1f Section 1f. 655.23 (4) (b) 2. am. of the statutes is created to read:

SB393-SA1,3,4 655.23 (4) (b) 2. am. For occurrence coverage for health care providers under s. 655.002 (1) (d) to (j), at least $1,000,000 for each occurrence and $3,000,000 for all occurrences in any one policy year for occurrences on or after July 1, 1997.

SB393-SA1, s. 1g Section 1g. 655.23 (4) (b) 2. b. of the statutes is amended to read:

SB393-SA1,3,12 655.23 (4) (b) 2. b. For claims-made coverage for health care providers under s. 655.002 (1) (a) to (c) and (2), at least $1,000,000 for each claim arising from an occurrence on or after July 1, 1997, and before July 1, 2006, regardless of when the claim is made, and $3,000,000 for all claims in any one reporting year for claims made on or after July 1, 1997, and before July 1, 2006, and $750,000 for each claim arising from an occurrence on or after July 1, 2006, and $2,250,000 for all claims in any one reporting year for claims made on or after July 1, 2006.

SB393-SA1, s. 1h Section 1h. 655.23 (4) (b) 2. bm. of the statutes is created to read:

SB393-SA1,3,17 655.23 (4) (b) 2. bm. For claims-made coverage for health care providers under s. 655.002 (1) (d) to (j), at least $1,000,000 for each claim arising from an occurrence on or after July 1, 1997, and $3,000,000 for all claims in any one reporting year for claims made on or after July 1, 1997.

SB393-SA1, s. 1j Section 1j. 655.23 (4) (c) 1. of the statutes is amended to read:

SB393-SA1,4,6 655.23 (4) (c) 1. Except as provided in subd. 2., self-insurance shall be in amounts of at least $200,000 for each occurrence and $600,000 for all occurrences in any one policy year for occurrences before July 1, 1987, $300,000 for each occurrence and $900,000 for all occurrences in any one policy year for occurrences on or after July 1, 1987, and before July 1, 1988, $400,000 for each occurrence and $1,000,000 for all occurrences in any one policy year for occurrences on or after July 1, 1988, and before July 1, 1997, and for health care providers under s. 655.002 (1) (d) to (j) $1,000,000 for each occurrence and $3,000,000 for all occurrences in any one policy year for occurrences on or after July 1, 1997, and for health care providers under s. 655.002 (1) (a) to (c) and (2) $1,000,000 for each occurrence and $3,000,000 for all occurrences in any one policy year for occurrences on or after July 1, 1997, and before July 1, 2006, and $750,000 for each occurrence and $2,250,000 for all occurrences in any one policy year for occurrences on or after July 1, 2006.

SB393-SA1, s. 1m Section 1m. 655.27 (5) (d) of the statutes is amended to read:

SB393-SA1,5,5 655.27 (5) (d) A person who has recovered a final judgment or a settlement approved by the board of governors against a health care provider, or an employee of a health care provider, that has coverage under the fund may file a claim with the board of governors to recover that portion of such judgment or settlement which is in excess of the limits in s. 655.23 (4) or the maximum liability limit for which the health care provider is insured, whichever limit is greater. In Subject to par. (dm), in the event the fund incurs liability for future payments exceeding $1,000,000 to any person under a single claim as the result of a settlement or judgment that is entered into or rendered under this chapter for an act or omission that occurred on or after May 25, 1995, the fund shall pay, after deducting the reasonable costs of collection attributable to the remaining liability, including attorney fees reduced to present value, the full medical expenses each year, plus an amount not to exceed $500,000 per year that will pay the remaining liability over the person's anticipated lifetime, or until the liability is paid in full. If Subject to par. (dm), if the remaining liability is not paid before the person dies, the fund may pay the remaining liability in a lump sum. Payments shall be made from money collected and paid into the fund under sub. (3) and from interest earned thereon. For claims subject to a periodic payment made under this paragraph, payments shall be made until the claim has been paid in full, except as provided in par. (dm) and s. 655.015. Periodic payments made under this paragraph include direct or indirect payment or commitment of moneys to or on behalf of any person under a single claim by any funding mechanism. No interest may be paid by the fund on the unpaid portion of any claim filed under this paragraph, except as provided under s. 807.01 (4), 814.04 (4), or 815.05 (8).

SB393-SA1, s. 1n Section 1n. 655.27 (5) (dm) of the statutes is created to read:

SB393-SA1,5,17 655.27 (5) (dm) If the fund is liable for payment of a portion of a final judgment or settlement that includes noneconomic damages and that results from an act or omission occurring on or after the effective date of this paragraph .... [revisor inserts date], the fund shall pay any attorney fees under s. 655.013 for which it is liable as soon as practicable and shall pay the noneconomic damages for which it is liable in annual installments of $100,000 or 10 percent of the balance of the noneconomic damages owed by the fund, whichever is greater, until the noneconomic damages for which the fund is liable are fully paid. However, the parties may agree to a discounted, faster payout of noneconomic damages. If the claimant dies before all noneconomic damages are fully paid by the fund, the amount remaining reverts to the fund.".

SB393-SA1,5,18 5. Page 3, line 2: after that line insert:

SB393-SA1,5,21 "4. No monetary award can adequately compensate an injured person or a member of the injured person's family for the pain and suffering and other noneconomic damages associated with an injury caused by medical malpractice.

SB393-SA1,5,24 5. A stable environment regarding resolution of medical malpractice claims with limits on medical malpractice awards is an important factor in retaining and recruiting health care providers to practice in Wisconsin.

SB393-SA1,6,3 6. Assumption by the fund of responsibility for a portion of medical malpractice claims decreases costs to health care providers, which will aid in retaining and recruiting health care providers to practice in Wisconsin.

SB393-SA1,6,6 7. Stability and predictability of costs experienced by a fund maintained for the purpose of paying damages awarded to medical malpractice victims assures all victims reasonable compensation for their loss.".

SB393-SA1,6,7 6. Page 5, line 3: delete lines 3 to 18 and substitute:

SB393-SA1,6,8 " Section 7g. 893.55 (4) (d) of the statutes is amended to read:

SB393-SA1,6,23 893.55 (4) (d) The limit on total noneconomic damages for each occurrence under par. (b) on or after May 25, 1995 the effective date of this paragraph .... [revisor inserts date], shall be $350,000 $2,000,000 for a person under the age of 18 at the time of his or her injury and shall be reduced by 1 percent for each year that elapses after the person attains the age of 18. In addition, the limit on total noneconomic damages for each occurrence under par. (b) on or after the effective date of this paragraph .... [revisor inserts date], for each person listed under s. 655.007 having a derivative claim for injury on account of malpractice is $100,000, except that if a parent or guardian of a child under the age of 18 is the injured party, then the limit of $100,000 for the child's derivative claim is increased by $20,000 for each year that the child's age is under the age of 17 at the time of his or her parent's or guardian's injury. These limits shall be adjusted by the director of state courts to reflect changes in the consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, at least annually thereafter, with the adjusted limit limits to apply to awards subsequent to such adjustments.".

SB393-SA1,6,24 7. Page 5, line 18: after that line insert:

SB393-SA1,7,1 " Section 9c. Initial applicability.

SB393-SA1,7,4 (1) Health care liability insurance limits. The treatment of sections 619.01 (7) (a) and 655.23 (4) (b) 2. a., am., b., and bm. of the statutes first applies to policies issued or renewed on the effective date of this subsection.

SB393-SA1, s. 10c Section 10c. Effective dates. This act takes effect on the day after publication, except as follows:

SB393-SA1,7,9 (1) Health care liability insurance limits. The treatment of sections 619.01 (7) (a) and 655.23 (4) (b) 2. a., am., b., and bm. and (c) 1. of the statutes and Section 9c (1) of this act take effect on July 1, 2006.".

SB393-SA1,7,10 (End)