Bill Text: TX SB786 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to health care liability insurance for certain nursing facilities.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2019-03-01 - Referred to Health & Human Services [SB786 Detail]
Download: Texas-2019-SB786-Introduced.html
| 86R5602 SCL-F | ||
| By: Johnson, Schwertner | S.B. No. 786 | |
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| relating to health care liability insurance for certain nursing | ||
| facilities. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 242, Health and Safety | ||
| Code, is amended by adding Section 242.0337 to read as follows: | ||
| Sec. 242.0337. LIABILITY INSURANCE COVERAGE REQUIRED. (a) | ||
| In this section: | ||
| (1) "Governmental unit" has the meaning assigned by | ||
| Section 101.001, Civil Practice and Remedies Code. | ||
| (2) "Health care liability claim" has the meaning | ||
| assigned by Section 74.001, Civil Practice and Remedies Code. | ||
| (b) To hold a license under this chapter, a nursing facility | ||
| must maintain professional liability insurance coverage against | ||
| the liability of the facility or the facility's employees for a | ||
| health care liability claim. | ||
| (c) The insurance coverage maintained by a nursing facility | ||
| under this section: | ||
| (1) must provide coverage annually in the minimum | ||
| amount of $300,000 per occurrence and $1 million aggregate, except | ||
| as provided by Subsection (d); | ||
| (2) must be written on an occurrence basis; | ||
| (3) must be issued by: | ||
| (A) an insurer authorized to write professional | ||
| liability insurance in this state; | ||
| (B) the Texas Medical Liability Insurance | ||
| Underwriting Association established under Chapter 2203, Insurance | ||
| Code; or | ||
| (C) an eligible surplus lines insurer in | ||
| accordance with Chapter 981, Insurance Code; | ||
| (4) may not include the cost of defense of a claim | ||
| under the coverage in the coverage's liability limit; and | ||
| (5) must be in a form acceptable to the commission. | ||
| (d) For a nursing facility owned and operated by a | ||
| governmental unit, the insurance coverage maintained by the | ||
| facility must provide coverage only to the extent of the | ||
| governmental unit's liability under Section 101.023, Civil | ||
| Practice and Remedies Code. | ||
| (e) A management company that manages a nursing facility | ||
| owned by a governmental unit shall maintain professional liability | ||
| insurance coverage against the liability of the management company | ||
| or the company's employees for a health care liability claim as | ||
| described by Subsection (c). The coverage required by this | ||
| subsection is in addition to the insurance coverage maintained by | ||
| the facility under Subsection (b). | ||
| (f) To the extent permitted by federal law and applicable | ||
| state and federal rules, the cost of insurance coverage required to | ||
| be maintained under this section is an allowable cost for | ||
| reimbursement under the state Medicaid program. | ||
| SECTION 2. This Act takes effect September 1, 2019. | ||
