HLS 12RS-197 ORIGINAL Page 1 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2012 HOUSE BILL NO. 105 BY REPRESENTATIVE EDWARDS MALPRACTICE/MEDICAL: Provides relative to the medical malpractice cap AN ACT1 To amend and reenact R.S. 40:1299.39(F)(introductory paragraph), (2), (3), (6), and (7),2 1299.42(B)(1), and 1299.43(D) and to enact R.S. 40:1299.39(F)(13) and (14) and3 1299.42(B)(4) and (5), relative to medical malpractice; to provide for limitations of4 recovery, annual adjustments of the limits of liability, and proper advertising5 pursuant to the Malpractice Liability for State Services Act and the Medical6 Malpractice Act; and to provide for related matters.7 Be it enacted by the Legislature of Louisiana:8 Section 1. R.S. 40:1299.39(F)(introductory paragraph), (2), (3), (6), and (7),9 1299.42(B)(1), and 1299.43(D) are hereby amended and reenacted to read as follows: 10 §1299.39. Definitions and general application11 * * *12 F. Notwithstanding any other provision of the law to the contrary, no13 judgment shall be rendered and no settlement or compromise shall be entered into14 for the injury or death of any patient in any action or claim for an alleged act of15 malpractice in excess of five hundred seven hundred fifty thousand dollars plus16 interest and costs, exclusive of future medical care and related benefits and exclusive17 HLS 12RS-197 ORIGINAL HB NO. 105 Page 2 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. of economic losses, including loss of earnings, loss of earning capacity, and loss of1 support and services valued in excess of such five hundred seven hundred fifty2 thousand dollars. In claims which may include future medical care and related3 benefits, the following procedures shall apply:4 * * *5 (2) If the total amount of the value of the judgment or settlement or6 compromise is for five hundred seven hundred fifty thousand dollars, plus interest7 and costs, exclusive of the value of future medical care and related benefits and8 economic losses, all future medical care and related benefits shall be paid in9 accordance herewith.10 (3) If the total amount of recovery, excluding interest and costs but including11 the amount of future medical care and related benefits and economic losses does not12 exceed five hundred seven hundred fifty thousand dollars, judgment may be rendered13 for the total amount and paid by the state as provided by Subsection I of this Section.14 * * *15 (6) If the total amount of recovery awarded against the state, excluding16 interest and costs but including the amount of future medical care and related17 benefits and economic losses, exceeds five hundred seven hundred fifty thousand18 dollars, the claimant may make a claim to the office of risk management for all19 future medical care and related benefits.20 (7) Payments for medical care and related benefits shall be paid by the office21 of risk management pursuant to Subsection L of this Section, without regard to the22 five hundred seven hundred fifty thousand dollar limitation imposed in this23 Subsection.24 * * *25 §1299.42. Limitation of recovery 26 * * *27 B.(1) The total amount recoverable for all malpractice claims for injuries to28 or death of a patient, exclusive of future medical care and related benefits as29 HLS 12RS-197 ORIGINAL HB NO. 105 Page 3 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. provided in R.S. 40:1299.43, and exclusive of economic losses, including loss of1 earnings, loss of earning capacity, and loss of support and services shall not exceed2 five hundred seven hundred fifty thousand dollars plus interest and cost costs.3 * * *4 §1299.43. Future medical care and related benefits5 * * *6 D. Payments for medical care and related benefits shall be paid by the7 patient's compensation fund without regard to the five hundred seven hundred fifty8 thousand dollar limitation imposed in R.S. 40:1299.42.9 * * *10 Section 2. R.S. 40:1299.39(F)(13) and (14) and 1299.42(B)(4) and (5) are hereby11 enacted to read as follows: 12 §1299.39. Definitions and general application13 * * *14 F.15 * * *16 (13)(a) The limitations of this Subsection shall be adjusted annually based17 upon the United States Consumer Price Index, but no adjustment shall be increased18 or decreased by more than four percent. This provision shall become effective on19 January 1, 2014, and be adjusted on January first of every subsequent year. This20 adjustment shall be carried out in the following manner:21 (b) On October first of each year, the commissioner of financial institutions22 shall determine the percentage increase or decrease in the Consumer Price Index-U23 for the previous twelve-month period. The limits of liability as provided in this24 Subsection shall be increased or decreased, as applicable, by a percentage equal to25 the percentage change in the Consumer Price Index-U during the preceding twelve-26 month period. The limit of liability for the calendar year following the calculation27 date shall be published in the December issue of the Louisiana Bar Journal, the28 December issue of the Louisiana Register, and in one daily newspaper of general29 HLS 12RS-197 ORIGINAL HB NO. 105 Page 4 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. circulation in each of the cities of Alexandria, Baton Rouge, Lake Charles, Lafayette,1 Monroe, New Orleans, and Shreveport. The notice in the daily newspapers shall be2 published on two separate occasions, with at least one week between publications,3 during the month of December. The publication in the Louisiana Register shall not4 be considered rulemaking, within the intent of the Administrative Procedure Act,5 R.S. 49:950 et seq., and particularly R.S. 49:953.6 (14) The limitation of recovery provided in this Section shall be governed7 by the limitation in effect on the date a medical review panel is requested in8 accordance with R.S. 40:1299.39.1(A)(2)(b).9 * * *10 §1299.42. Limitation of recovery11 * * *12 B.13 * * *14 (4)(a) The limitations of Paragraphs (1) and (2) of this Subsection shall be15 adjusted annually based upon the United States Consumer Price Index, but no16 adjustment shall be increased or decreased by more than four percent. This provision17 shall become effective on January 1, 2014, and be adjusted on January first of every18 subsequent year. This adjustment shall be carried out in the following manner:19 (b) On October first of each year, the commissioner of financial institutions20 shall determine the percentage increase or decrease in the Consumer Price Index-U21 for the previous twelve-month period. The limits of liability as provided in22 Paragraphs (1) and (2) of this Subsection shall be increased or decreased, as23 applicable, by a percentage equal to the percentage change in the Consumer Price24 Index-U during the preceding twelve-month period. The limit of liability for the25 calendar year following the calculation date shall be published in the December issue26 of the Louisiana Bar Journal, the December issue of the Louisiana Register, and in27 one daily newspaper of general circulation in each of the cities of Alexandria, Baton28 Rouge, Lake Charles, Lafayette, Monroe, New Orleans, and Shreveport. The notice29 HLS 12RS-197 ORIGINAL HB NO. 105 Page 5 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. in the daily newspapers shall be published on two separate occasions, with at least1 one week between publications, during the month of December. The publication in2 the Louisiana Register shall not be considered rulemaking, within the intent of the3 Administrative Procedure Act, R.S. 49:950 et seq., and particularly R.S. 49:953.4 (5) The limitation of recovery provided in this Section shall be governed by5 the limitation in effect on the date a medical review panel is requested in accordance6 with R.S. 40:1299.47(A)(2)(b).7 Section 3. The provisions of Section 1 of this Act shall become effective January 1,8 2013.9 Section 4. The provisions of Section 2 of this Act shall become effective January 1,10 2014.11 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Edwards HB No. 105 Abstract: Increases the medical malpractice cap to $750,000, exclusive of economic losses, loss of earnings, and loss of earning capacity and provides that the cap shall be adjusted annually. Relative to the Medical Malpractice Liability for State Services Act and the Medical Malpractice Act: Present law provides that the total amount of recovery for the injury to or death of a patient of qualified providers shall not exceed $500,000 plus interest and costs, exclusive of the costs of future medical care. Proposed law increases the amount of recovery from $500,000 to $750,000 and also makes it exclusive of economic losses, including loss of earnings and loss of earning capacity, effective Jan. 1, 2013. Proposed law provides that the percentage of the increase or decrease shall be determined in Oct. of each year and shall change to the new percentage Jan. 1 of each year, beginning on Jan. 1, 2014. Proposed law provides that the change in percentage shall be determined by the change in the CPI-U in the previous 12 months, effective Jan. 1, 2014. Proposed law provides that these changes in limits of liability are effective Jan. 1, 2014, for the calendar year following the calculation shall be published in the Dec. issues of the Louisiana Bar Journal and the Louisiana Register, and shall be published on two separate occasions, at least a week apart, during the month of Dec. in one daily newspaper of general HLS 12RS-197 ORIGINAL HB NO. 105 Page 6 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. circulation in each of the following cities: Alexandria, Baton Rouge, Lake Charles, Lafayette, Monroe, New Orleans, and Shreveport. (Amends R.S. 40:1299.39(F)(intro. para.) (2), (3), (6), and (7), 1299.42(B)(1), and 1299.43(D); Adds R.S. 40:1299.39(F)(13) and (14) and 1299.42(B)(4) and (5))