Bill Text: IA HSB160 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to compensation discussions regarding adverse health care incidents.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-02-14 - Subcommittee: Moore, T., Baeth and Lohse. H.J. 308. [HSB160 Detail]
Download: Iowa-2023-HSB160-Introduced.html
House
Study
Bill
160
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
HEALTH
AND
HUMAN
SERVICES
BILL
BY
CHAIRPERSON
MEYER)
A
BILL
FOR
An
Act
relating
to
compensation
discussions
regarding
adverse
1
health
care
incidents.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2138YC
(3)
90
cm/ns
H.F.
_____
Section
1.
NEW
SECTION
.
135P.5
Demand
for
policy
limits
——
1
prima
facie
evidence
of
bad
faith.
2
1.
If
a
health
care
provider
or
health
facility
makes
an
3
offer
of
compensation
under
section
135P.3,
subsection
3,
4
paragraph
“d”
,
subparagraph
(2),
the
health
care
provider
or
5
health
facility
shall
provide
the
patient
with
the
contents
6
of
any
insurance
agreement
under
which
any
person
carrying
on
7
an
insurance
business
may
be
liable
to
satisfy
part
or
all
8
of
a
judgment
which
may
be
entered
in
any
civil
action
or
9
to
indemnify
or
reimburse
for
payments
made
to
satisfy
any
10
judgment
entered
in
any
civil
action
filed
by
the
patient
11
against
the
health
care
provider
or
health
facility,
including
12
a
copy
of
any
insurance
declaration
page
showing
the
limits
of
13
insurance
that
may
be
available
to
the
patient
to
satisfy
any
14
settlement
or
judgment
relating
to
the
patient’s
injuries
and
15
damages.
The
health
care
provider
or
health
facility
shall
16
also
include
a
copy
of
any
declarations
page
providing
primary
17
professional
liability
coverage
as
well
as
any
applicable
18
umbrella
coverages.
19
2.
If,
at
the
end
of
the
compensation
discussion,
the
20
patient
has
made
a
demand
for
an
amount
that
is
less
than
or
21
equal
to
the
applicable
policy
limits,
and
the
health
care
22
provider
or
health
facility
consents
in
writing
to
the
payment
23
by
the
insurance
carrier
of
the
demand,
then
the
insurance
24
carrier
identified
in
any
insurance
agreement
or
declarations
25
page
produced
under
subsection
1
shall
respond
in
writing
to
26
the
patient’s
demand
within
thirty
days
of
receipt.
If
the
27
insurance
carrier
refuses
to
pay
the
demand
and
the
patient
28
subsequently
receives
a
verdict
or
judgment
against
the
health
29
care
provider
or
health
facility
in
an
amount
exceeding
the
30
applicable
policy
limits,
then
notwithstanding
section
135P.2,
31
the
patient’s
demand
for
an
amount
that
was
less
than
or
equal
32
to
the
applicable
policy
limits,
the
health
care
provider
or
33
health
facility’s
consent,
and
the
insurance
carrier’s
refusal
34
to
pay
shall
be
discoverable
and
admissible
in
any
subsequent
35
-1-
LSB
2138YC
(3)
90
cm/ns
1/
3
H.F.
_____
action
against
the
insurance
carrier
for
bad
faith.
1
3.
If
the
requirements
of
subsections
1
and
2
have
been
met
2
and
if
a
bad-faith
action
is
filed
against
an
insurance
carrier
3
for
failure
to
pay
a
demand
under
subsection
2,
then
there
4
shall
be
a
rebuttable
presumption
of
bad
faith
against
the
5
insurance
carrier
and
in
favor
of
the
health
care
provider
or
6
health
facility.
Any
subsequent
verdict
amount
entered
against
7
an
insurance
carrier
for
bad
faith
under
this
subsection
shall
8
not
be
used
by
the
insurance
carrier
to
increase
premiums
9
charged
to
the
insured
health
care
provider,
the
insured
health
10
facility,
or
the
health
care
industry
as
a
whole.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
relates
to
compensation
discussions
regarding
15
adverse
health
care
incidents.
16
Under
Code
chapter
135P,
a
health
care
provider,
a
health
17
facility,
or
a
health
care
provider
jointly
with
a
health
18
facility,
may
engage
in
an
open,
confidential
discussion
with
a
19
patient
related
to
an
adverse
health
care
incident.
20
The
bill
provides
that
if
a
health
care
provider
or
health
21
facility
makes
an
offer
of
compensation,
the
health
care
22
provider
or
health
facility
shall
provide
the
patient
with
the
23
contents
of
any
insurance
agreement
under
which
any
person
24
carrying
on
an
insurance
business
may
be
liable
to
satisfy
25
a
judgment.
If
at
the
end
of
the
discussion,
the
patient
26
and
health
care
provider
or
health
facility
have
reached
an
27
agreement
for
an
amount
equal
to
or
less
than
that
of
the
28
insurance
policy
limits,
then
the
insurance
carrier
has
30
29
days
to
respond
in
writing
to
the
agreed-upon
demand.
If
the
30
insurance
carrier
refuses
to
pay
and
the
patient
receives
a
31
subsequent
verdict
or
judgment
against
the
health
care
provider
32
or
health
facility
that
exceeds
the
policy
limits,
then
the
33
health
care
provider
or
health
facility’s
consent
and
insurance
34
carrier’s
refusal
is
discoverable
and
admissible
in
any
35
-2-
LSB
2138YC
(3)
90
cm/ns
2/
3
H.F.
_____
subsequent
action
against
the
insurance
carrier
for
bad
faith.
1
The
bill
provides
that
if
the
discussion
contents
become
2
discoverable,
there
shall
be
a
rebuttable
presumption
of
bad
3
faith
against
the
insurance
carrier
and
in
favor
of
the
health
4
care
provider
or
health
facility.
Any
subsequent
verdict
5
amount
against
the
insurance
carrier
for
bad
faith
cannot
6
be
used
to
increase
the
premium
charged
to
the
health
care
7
provider,
health
facility,
or
health
care
industry
as
a
whole.
8
-3-
LSB
2138YC
(3)
90
cm/ns
3/
3