Bill Text: IA HF2175 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to open communications related to adverse health care incidents, including the rights of patients, health care providers, and health care facilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-02-01 - Introduced, referred to Human Resources. H.J. 152. [HF2175 Detail]
Download: Iowa-2021-HF2175-Introduced.html
House
File
2175
-
Introduced
HOUSE
FILE
2175
BY
SALMON
A
BILL
FOR
An
Act
relating
to
open
communications
related
to
adverse
1
health
care
incidents,
including
the
rights
of
patients,
2
health
care
providers,
and
health
care
facilities.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
135P.3,
subsection
1,
unnumbered
1
paragraph
1,
Code
2022,
is
amended
to
read
as
follows:
2
If
an
adverse
health
care
incident
occurs
in
a
health
3
facility,
the
health
care
provider,
the
health
facility,
or
4
the
health
care
provider
jointly
with
the
health
facility,
may
5
provide
the
patient
with
written
notice
of
the
desire
of
the
6
health
care
provider,
the
health
facility,
or
of
the
health
7
care
provider
jointly
with
the
health
facility,
to
enter
into
8
an
open
discussion
under
this
chapter
.
A
health
facility
may
9
designate
a
person
or
class
of
persons
who
have
authority
to
10
provide
such
notice
on
behalf
of
the
facility.
If
the
health
11
care
provider
or
health
facility
provides
such
notice,
such
12
notice
must
be
sent
within
one
year
after
the
date
on
which
13
the
health
care
provider
knew,
or
through
the
use
of
diligence
14
should
have
known,
of
the
adverse
health
care
incident
;
15
however,
this
one-year
requirement
may
be
waived
by
the
patient
16
if
done
so
in
writing
by
the
patient
or
the
patient’s
legal
17
representative
.
The
notice
must
include
all
of
the
following:
18
Sec.
2.
NEW
SECTION
.
135P.5
Demand
for
policy
limits
——
19
prima
facie
evidence
of
bad
faith.
20
1.
If
a
health
care
provider
or
health
facility
makes
an
21
offer
of
compensation
under
section
135P.3,
subsection
3,
22
paragraph
“d”
,
subparagraph
(2),
the
health
care
provider
23
or
health
care
facility
shall
provide
the
patient
with
the
24
contents
of
any
insurance
agreement
under
which
any
person
25
carrying
on
an
insurance
business
may
be
liable
to
satisfy
part
26
or
all
of
a
judgment
which
may
be
entered
in
any
civil
action
27
or
to
indemnify
or
reimburse
for
payments
made
to
satisfy
any
28
judgment
entered
in
any
civil
action
filed
by
the
patient
29
against
the
health
care
provider
or
health
facility,
including
30
a
copy
of
any
insurance
declaration
page
showing
the
limits
of
31
insurance
that
may
be
available
to
the
patient
to
satisfy
any
32
settlement
or
judgment
relating
to
the
patient’s
injuries
and
33
damages.
The
health
care
provider
or
health
facility
shall
34
also
include
a
copy
of
any
declarations
page
providing
primary
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professional
liability
coverage
as
well
as
any
applicable
1
umbrella
coverages.
2
2.
If,
at
the
end
of
the
compensation
discussion,
the
3
patient
has
made
a
demand
for
an
amount
that
is
less
than
or
4
equal
to
the
applicable
policy
limits,
and
the
health
care
5
provider
or
health
care
facility
consents
in
writing
to
the
6
payment
by
the
insurance
carrier
of
the
demand,
then
the
7
insurance
carrier
identified
in
any
insurance
agreement
or
8
declarations
page
produced
under
subsection
1
shall
respond
in
9
writing
to
the
patient’s
demand
within
thirty
days
of
receipt.
10
If
the
insurance
carrier
refuses
to
pay
the
demand
and
the
11
patient
subsequently
receives
a
verdict
or
judgment
against
12
the
health
care
provider
or
health
care
facility
in
an
amount
13
exceeding
the
applicable
policy
limits,
then
notwithstanding
14
section
135P.2,
the
patient’s
demand
for
an
amount
that
was
15
less
than
or
equal
to
the
applicable
policy
limits,
the
health
16
care
provider
or
health
care
facility’s
consent,
and
the
17
insurance
company’s
refusal
to
pay
shall
be
discoverable
and
18
admissible
in
any
subsequent
action
against
the
insurance
19
company
for
bad
faith.
20
3.
If
the
requirements
of
subsections
1
and
2
have
been
21
met
and
if
a
bad-faith
action
is
filed
against
an
insurer
22
for
failure
to
pay
a
demand
under
subsection
2,
then
there
23
shall
be
an
irrebuttable
presumption
of
bad
faith
against
the
24
insurer
and
in
favor
of
the
health
care
provider
or
health
care
25
facility.
Any
subsequent
verdict
amount
entered
against
an
26
insurance
carrier
for
bad
faith
under
this
subsection
shall
not
27
be
used
by
the
insurance
carrier
to
increase
premiums
charged
28
to
the
insured
health
care
provider,
the
insured
health
care
29
facility,
or
the
health
care
industry
as
a
whole.
30
Sec.
3.
NEW
SECTION
.
135P.6
Inquiry
for
open
discussions.
31
1.
This
chapter
shall
not
prohibit
a
patient
or
a
patient’s
32
representative
from
requesting
that
a
health
care
provider
33
consider
the
initiation
of
open
discussions
under
section
34
135P.3.
If
such
an
inquiry
is
received
by
a
health
care
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provider
and
the
health
care
provider
has
insurance
coverage
1
identifiable
under
section
135P.5,
subsection
1,
the
health
2
care
provider
may
notify
the
insurance
company
of
the
inquiry.
3
2.
Upon
receipt
of
the
notification
of
the
inquiry,
the
4
insurance
carrier
shall
appoint
independent
legal
counsel
to
5
advise
the
health
care
provider
or
health
facility
regarding
6
the
health
care
provider’s
rights
under
this
chapter.
Legal
7
counsel
appointed
under
this
subsection
shall
continue
8
to
represent
the
health
care
provider
throughout
any
open
9
discussions
that
may
subsequently
take
place
under
this
10
chapter.
11
3.
Legal
counsel
appointed
to
represent
the
health
care
12
provider
under
this
section
shall
not
represent
the
health
care
13
provider
in
any
subsequent
litigation
related
to
the
patient
14
who
inquired
about
the
potential
for
open
discussions
or
any
15
patient
with
whom
open
discussions
were
initiated
under
section
16
135P.3.
17
4.
A
failure
of
an
insurance
company
to
comply
with
18
subsection
2
shall
be
an
irrebuttable
presumption
of
bad
faith
19
in
any
subsequent
litigation
between
the
health
care
provider
20
and
the
insurance
company.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
This
bill
relates
to
open
communications
related
to
adverse
25
health
care
incidents,
including
the
rights
of
patients,
health
26
care
providers,
and
health
care
facilities.
27
Under
Code
chapter
135P,
a
health
care
provider,
or
a
health
28
care
provider
jointly
with
a
health
facility,
may
engage
in
29
an
open,
confidential
discussion
with
a
patient
related
to
an
30
adverse
health
care
incident.
Under
current
law,
a
health
care
31
provider
or
health
care
facility
desiring
to
do
so
must
provide
32
notice
within
one
year
of
the
date
of
the
adverse
health
care
33
incident.
The
bill
provides
that
the
one-year
limitation
may
34
be
waived
by
the
patient
or
patient’s
legal
representative
by
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written
consent.
1
The
bill
provides
that
if
a
health
care
provider
or
health
2
facility
makes
an
offer
of
compensation,
the
health
care
3
provider
or
health
care
facility
shall
provide
the
patient
with
4
the
contents
of
any
insurance
agreement
under
which
any
person
5
carrying
on
an
insurance
business
may
be
liable
to
satisfy
a
6
judgment.
If
at
the
end
of
the
discussion,
the
patient
and
7
health
care
provider
or
health
care
facility
has
reached
an
8
agreement
for
an
amount
equal
to
or
less
than
that
of
the
9
insurance
policy,
then
the
insurance
carrier
has
30
days
to
10
respond
in
writing
to
the
agreed-upon
demand.
If
the
insurance
11
carrier
refuses
to
pay
and
the
patient
receives
a
subsequent
12
verdict
or
judgment
against
the
health
care
provider
or
health
13
care
facility
that
exceeds
the
policy
limits
than
the
health
14
care
provider
or
health
care
facility’s
consent
and
insurance
15
carrier’s
refusal
is
discoverable
and
admissible
in
any
16
subsequent
action
against
the
insurance
company
for
bad
faith.
17
The
bill
provides
that
if
the
discussion
contents
become
18
discoverable,
there
shall
be
an
irrebuttable
presumption
of
19
bad
faith
against
the
insurer
and
in
favor
of
the
health
care
20
provider
or
health
care
facility.
Any
subsequent
verdict
21
amount
against
the
insurer
for
bad
faith
cannot
be
used
to
22
increase
the
premium
charged
to
the
health
care
provider,
23
health
care
facility,
or
health
care
industry
as
a
whole.
24
The
bill
does
not
prohibit
a
patient
or
a
patient’s
25
representative
from
requesting
that
a
health
care
provider
26
consider
the
initiation
of
open
discussions.
Upon
such
an
27
inquiry,
the
health
care
provider
may
notify
the
insurance
28
company
of
the
inquiry.
Upon
receipt
of
the
notification
of
29
the
inquiry,
the
insurance
carrier
shall
appoint
independent
30
legal
counsel
to
advise
the
health
care
provider
regarding
31
the
health
care
provider’s
rights
under
Code
chapter
135P.
32
A
failure
to
appoint
legal
counsel
shall
be
an
irrebuttable
33
presumption
of
bad
faith
in
any
subsequent
litigation
between
34
the
health
care
provider
and
the
insurance
company.
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