| 1 | 1 | | 87R5872 MCF-F |
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| 2 | 2 | | By: Johnson, Schwertner S.B. No. 493 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to health care liability insurance for certain nursing |
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| 8 | 8 | | facilities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter B, Chapter 242, Health and Safety |
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| 11 | 11 | | Code, is amended by adding Section 242.0337 to read as follows: |
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| 12 | 12 | | Sec. 242.0337. LIABILITY INSURANCE COVERAGE REQUIRED. (a) |
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| 13 | 13 | | In this section: |
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| 14 | 14 | | (1) "Governmental unit" has the meaning assigned by |
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| 15 | 15 | | Section 101.001, Civil Practice and Remedies Code. |
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| 16 | 16 | | (2) "Health care liability claim" has the meaning |
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| 17 | 17 | | assigned by Section 74.001, Civil Practice and Remedies Code. |
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| 18 | 18 | | (b) A nursing facility licensed under this chapter shall |
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| 19 | 19 | | maintain professional liability insurance coverage against the |
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| 20 | 20 | | liability of the facility or the facility's employees for a health |
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| 21 | 21 | | care liability claim. |
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| 22 | 22 | | (c) The insurance coverage maintained by a nursing facility |
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| 23 | 23 | | under this section: |
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| 24 | 24 | | (1) must provide coverage with minimum annual limits |
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| 25 | 25 | | of $300,000 per occurrence and $1 million aggregate, except as |
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| 26 | 26 | | provided by Subsection (d); |
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| 27 | 27 | | (2) must be written on an occurrence basis; |
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| 28 | 28 | | (3) must be issued by: |
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| 29 | 29 | | (A) an insurer authorized to write professional |
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| 30 | 30 | | liability insurance in this state; |
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| 31 | 31 | | (B) the Texas Medical Liability Insurance |
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| 32 | 32 | | Underwriting Association established under Chapter 2203, Insurance |
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| 33 | 33 | | Code; or |
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| 34 | 34 | | (C) an eligible surplus lines insurer in |
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| 35 | 35 | | accordance with Chapter 981, Insurance Code; |
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| 36 | 36 | | (4) may not include the cost of defense of a claim |
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| 37 | 37 | | under the coverage in the coverage's liability limit; and |
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| 38 | 38 | | (5) must be in a form acceptable to the commission. |
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| 39 | 39 | | (d) A nursing facility owned and operated by a governmental |
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| 40 | 40 | | unit is required to maintain insurance coverage only to the extent |
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| 41 | 41 | | of the governmental unit's liability under Section 101.023, Civil |
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| 42 | 42 | | Practice and Remedies Code. |
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| 43 | 43 | | (e) A management company that manages a nursing facility |
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| 44 | 44 | | owned by a governmental unit shall maintain professional liability |
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| 45 | 45 | | insurance coverage against the liability of the management company |
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| 46 | 46 | | or the company's employees for a health care liability claim |
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| 47 | 47 | | covered as described by Subsection (c). The coverage required by |
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| 48 | 48 | | this subsection is in addition to the insurance coverage maintained |
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| 49 | 49 | | by the facility under Subsection (b). |
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| 50 | 50 | | (f) To the extent permitted by federal law and applicable |
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| 51 | 51 | | state and federal rules, the cost of insurance coverage required |
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| 52 | 52 | | under this section is an allowable cost for reimbursement under the |
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| 53 | 53 | | state Medicaid program. |
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| 54 | 54 | | SECTION 2. This Act takes effect September 1, 2021. |
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