Bill Text: TX SB934 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to health care liability insurance for certain long-term care facilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-01 - Referred to Health & Human Services [SB934 Detail]
Download: Texas-2017-SB934-Introduced.html
| 2017S0236-1 02/15/17 | ||
| By: Schwertner | S.B. No. 934 | |
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| relating to health care liability insurance for certain long-term | ||
| care 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. (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, an institution | ||
| must maintain professional liability insurance coverage against | ||
| the liability of the institution or the institution's employees for | ||
| a health care liability claim. | ||
| (c) The insurance coverage maintained by an institution | ||
| 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 department. | ||
| (d) For an institution owned and operated by a governmental | ||
| unit, the insurance coverage maintained by the institution 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 an institution 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 Subsections (c)(1)-(5). The coverage required by this | ||
| subsection is in addition to the insurance coverage maintained by | ||
| the institution 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, 2017. | ||
