Texas House Bill HB136

Texas 2015 - 84th Regular

• Filed: 11/10/14

Caption

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

Impact

If enacted, HB 136 is expected to have a considerable impact on state laws governing professional liability insurance. By removing the requirement for trust membership as a condition for purchasing insurance, the bill aims to foster a more competitive insurance market for healthcare providers. This could potentially lower insurance costs and improve coverage options for practitioners who might otherwise struggle to obtain adequate liability protection. The bill also seeks to enhance patient safety through better risk management services offered under the umbrella of self-insurance trusts.

Summary

House Bill 136 aims to enhance the accessibility of professional liability insurance for healthcare providers in Texas by allowing self-insurance trusts to operate more effectively. The bill proposes amendments to the Insurance Code, specifying the powers and responsibilities of such trusts. In particular, the legislation allows trusts to purchase necessary insurance and risk management services, ensuring that healthcare professionals have appropriate coverage against liability claims. Notably, the bill emphasizes that membership in a self-insurance trust cannot be mandatory for obtaining liability insurance, thus promoting broader access to coverage for all licensed medical and dental professionals in the state.

Contention

The discussion surrounding HB 136 may revolve around concerns regarding the effectiveness of self-insurance trusts and their ability to provide sufficient coverage for healthcare providers. Some stakeholders may argue that removing membership requirements could weaken the financial stability of these trusts, thereby jeopardizing the availability of insurance for its members. However, supporters contend that the bill represents a vital step in ensuring that all healthcare providers can obtain necessary liability coverage without restrictive conditions, thus supporting an equitable healthcare environment in Texas.