86R5602 SCL-F
By: Johnson, Schwertner S.B. No. 786
A BILL TO BE ENTITLED
AN ACT
relating to health care liability insurance for certain nursing
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 REQUIRED. (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, a nursing facility
must maintain professional liability insurance coverage against
the liability of the facility or the facility's employees for a
health care liability claim.
(c) The insurance coverage maintained by a nursing facility
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 commission.
(d) For a nursing facility owned and operated by a
governmental unit, the insurance coverage maintained by the
facility 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 a nursing facility
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 Subsection (c). The coverage required by this
subsection is in addition to the insurance coverage maintained by
the facility 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, 2019.