Texas Senate Bill SB2418

Texas 2009 - 81st Regular

Caption

Relating to availability of professional liability insurance under a self-insurance trust for health care.

Impact

The impact of SB 2418 is anticipated to be significant for health care providers, particularly in rural and underserved areas where access to conventional professional liability insurance may be limited. By allowing self-insurance trusts to provide coverage without requiring membership in the association that created them, the bill could facilitate a more flexible insurance landscape. This change may encourage participation from a broader range of practitioners, potentially reducing costs and improving service delivery within the healthcare system.

Summary

Senate Bill 2418 addresses the availability of professional liability insurance through a self-insurance trust for health care professionals in Texas. The bill proposes amendments to the Insurance Code, particularly Section 2212.054, which governs the powers and duties of such trusts. Key changes include the elimination of membership conditions tied to issuing insurance contracts to licensed individuals, thereby broadening access to insurance for practitioners in the medical and dental fields. This measure is intended to enhance the coverage options for health care professionals operating within the state.

Contention

While the intent of SB 2418 is to enhance access to professional liability insurance, there may be concerns regarding the regulation and oversight of self-insurance trusts. Stakeholders may argue that while the bill reduces barriers for practitioners, it could similarly diminish accountability standards associated with traditional insurance models. This raises questions about the adequacy of claim handling, risk management services, and the long-term financial viability of such self-insurance systems in protecting both healthcare providers and patients.