2017S0236-1 02/15/17
By: Schwertner S.B. No. 934
A BILL TO BE ENTITLED
AN ACT
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.