AB36: Bill Text

LRB-1913/3

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1995 - 1996 LEGISLATURE

1995 Assembly BILL 36

January 19, 1995 - Introduced by Representatives Green, Albers, Urban and Handrick, cosponsored by Senator Huelsman. Referred to Committee on Insurance, Securities and Corporate Policy.

AB36,1,4 An Act to amend 655.015, 655.017, 655.27 (5) (d), 893.55 (4) (b) and 893.55 (4) (d); and to create 893.55 (4) (f) and 893.55 (6) of the statutes; relating to: limiting medical malpractice noneconomic damage awards and granting rule-making authority.

Analysis by the Legislative Reference Bureau

This bill establishes $250,000 as the maximum amount that a claimant may recover for noneconomic damages caused by the negligence of a health care provider or health care provider employe. This maximum is adjusted annually for inflation. Noneconomic damages are defined in the law to include items such as pain and suffering, embarrassment, mental distress and loss of society and companionship. Currently, there is no maximum limit on the amount recoverable for noneconomic damages.

Under current law, if an injured party receives compensation from someone for his or her injury, such as an insurance company, that information is not admissible as evidence in the action to recover damages from another person for the injury. This bill allows that information to be admissible as evidence in the action. The bill limits the damages for loss of society and companionship that may be recoverable in medical malpractice cases involving death to the $150,000 maximum currently established for other civil actions involving death.

Prior to June 14, 1986, any medical malpractice award for future medical expenses greater than $25,000 was paid into the compensation fund for later payment to the patient. This bill reinstates that provision and raises the limit to $100,000.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB36, s. 1 Section 1. 655.015 of the statutes is amended to read:

AB36,2,11 655.015 Future medical expenses. If a settlement, panel award or judgment under this chapter is entered into or rendered before June 14, 1986, or on or after the effective date of this section .... [revisor inserts date], and provides for future medical expense payments in excess of $25,000 $100,000, that portion of future medical expense payments in excess of $25,000 $100,000 shall be paid into the fund. The commissioner shall develop by rule a system for managing and disbursing those moneys through payments for these expenses. The commissioner shall promulgate a rule defining "medical expenses", taking into consideration developments in the provision of health care. The payments shall be made under the system until either the amount is exhausted or the patient dies.

AB36, s. 2 Section 2. 655.017 of the statutes is amended to read:

AB36,2,21 655.017 Limitation on noneconomic damages. The amount of noneconomic damages recoverable by a claimant or plaintiff under this chapter for acts or omissions of a health care provider if the action is filed act or omission occurs on or after June 14, 1986 and before January 1, 1991 the effective date of this section .... [revisor inserts date], and for acts or omissions of an employe of a health care provider, acting within the scope of his or her employment and providing health care services, for actions filed acts or omissions occurring on or after June 14, 1986 and before January 1, 1991 the effective date of this section .... [revisor inserts date], is subject to the limit limits under s. 893.55 (4) (d) and (f).

AB36, s. 3 Section 3. 655.27 (5) (d) of the statutes is amended to read:

AB36,3,22 655.27 (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 employe 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 the event the fund incurs liability exceeding $1,000,000 to any person under a single claim as the result of a settlement, panel award or judgment that is entered into or rendered under this chapter before June 14, 1986, or on or after the effective date of this paragraph .... [revisor inserts date], the fund shall pay not more than $500,000 per year. If the cost of medical expenses will exceed $500,000 per year, the fund shall pay the full medical expenses plus an amount determined by the fund that will pay the remaining liability over the person's anticipated lifetime. Payments shall be made from money collected and paid into the fund under sub. (3) and from interest earned thereon. For claims subject to the $500,000 yearly limit, payments shall be made until the claim has been paid in full, and any attorney fees in connection with such claim shall be similarly prorated. Payment of not more than $500,000 per year the yearly limit includes 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).

AB36, s. 4 Section 4. 893.55 (4) (b) of the statutes is amended to read:

AB36,4,6 893.55 (4) (b) The total noneconomic damages recoverable under ch. 655 for bodily injury or death, including any action or proceeding based on contribution or indemnification, may not exceed the limit under par. (d) for each occurrence treatment, operation or omission, from all health care providers and all employes of health care providers acting within the scope of their employment and providing health care services who are found negligent and from the patients compensation fund for any action filed act or omission occurring on or after June 14, 1986 and before January 1, 1991 the effective date of this paragraph .... [revisor inserts date].

AB36, s. 5 Section 5. 893.55 (4) (d) of the statutes is amended to read:

AB36,4,14 893.55 (4) (d) The limit on total noneconomic damages for each occurrence under par. (b) shall be $1,000,000 $250,000 for actions filed any act or omission occurring on or after June 14, 1986, the effective date of this paragraph .... [revisor inserts date], and 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 to apply to awards subsequent to such adjustments.

AB36, s. 6 Section 6. 893.55 (4) (f) of the statutes is created to read:

AB36,4,20 893.55 (4) (f) Notwithstanding the limits on noneconomic damages under this subsection, damages recoverable against health care providers for wrongful death are subject to the limit under s. 895.04 (4). If damages in excess of the limit under s. 895.04 (4) are found, the court shall make any reduction required under s. 895.045 and shall award the lesser of the reduced amount or the limit under s. 895.04 (4).

AB36, s. 7 Section 7. 893.55 (6) of the statutes is created to read:

AB36,4,24 893.55 (6) Evidence of any compensation for bodily injury received from sources other than the defendant to compensate the claimant for the injury is admissible in an action to recover damages for medical malpractice.

AB36,4,25 (End)