01-21 09:21 H.B. 288 1 Health Care Malpractice Amendments 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Nelson T. Abbott 2 3 LONG TITLE 4 General Description: 5 This bill addresses statutes of limitation for health care malpractice actions. 6 Highlighted Provisions: 7 This bill: 8 ▸ extends statutes of limitation for health care malpractice actions; 9 ▸ modifies the application of the statute of limitations, when a party files a notice of intent 10 to allocate fault to a non-party health care provider; 11 ▸ expands the definition of "collateral source"; 12 ▸ modifies the evidentiary rules for malpractice actions; 13 ▸ increases the limitation on awards of damages for noneconomic losses in certain 14 malpractice actions; and 15 ▸ subjects the limitation on awards of damages for noneconomic losses in certain 16 malpractice actions to an annual adjustment for inflation. 17 Money Appropriated in this Bill: 18 None 19 Other Special Clauses: 20 None 21 Utah Code Sections Affected: 22 AMENDS: 23 78B-3-404, as last amended by Laws of Utah 2012, Chapter 384 24 78B-3-405, as last amended by Laws of Utah 2023, Chapter 330 25 78B-3-410, as last amended by Laws of Utah 2010, Chapter 97 26 27 Be it enacted by the Legislature of the state of Utah: 28 Section 1. Section 78B-3-404 is amended to read: 29 78B-3-404 . Statute of limitations -- Exceptions -- Application. 30 (1) [A] Subject to Subsections (2) and (3), a malpractice action against a health care 31 provider shall be commenced within [two] four years after the plaintiff or patient H.B. 288 01-21 09:21 32 discovers, or through the use of reasonable diligence should have discovered the injury, 33 whichever first occurs, but not to exceed [four] eight years after the date of the alleged 34 act, omission, neglect, or occurrence. 35 (2) Notwithstanding Subsection (1): 36 (a) in an action where the allegation against the health care provider is that a foreign 37 object has been wrongfully left within a patient's body, the claim shall be barred 38 unless commenced within [one year] two years after the plaintiff or patient discovers, 39 or through the use of reasonable diligence should have discovered, the existence of 40 the foreign object wrongfully left in the patient's body, whichever first occurs; or 41 (b) in an action where it is alleged that a patient has been prevented from discovering 42 misconduct on the part of a health care provider because that health care provider has 43 affirmatively acted to fraudulently conceal the alleged misconduct, the claim shall be 44 barred unless commenced within [one year] two years after the plaintiff or patient 45 discovers, or through the use of reasonable diligence, should have discovered the 46 fraudulent concealment, whichever first occurs. 47 (3) A party's filing of a notice of intent to allocate fault to a non-party health care provider 48 constitutes any other party's discovery of injury under Subsection (1), and any other 49 party may commence a malpractice action against the non-party health care provider for 50 that injury within the limitation periods in this section. 51 Section 2. Section 78B-3-405 is amended to read: 52 78B-3-405 . Amount of award reduced by amounts of collateral sources available 53 to plaintiff -- No reduction where subrogation right exists -- Collateral sources defined -- 54 Procedure to preserve subrogation rights -- Evidence admissible -- Exceptions. 55 (1) In all malpractice actions against health care providers as defined in Section 78B-3-403 56 in which damages are awarded to compensate the plaintiff for losses sustained, the court 57 shall reduce the amount of the award by the total of all amounts paid to the plaintiff 58 from all collateral sources which are available to him. No reduction may be made for 59 collateral sources for which a subrogation right exists as provided in this section nor 60 shall there be a reduction for any collateral payment not included in the award of 61 damages. 62 (2) Upon a finding of liability and an awarding of damages by the trier of fact, the court 63 shall receive evidence concerning the total amounts of collateral sources which have 64 been paid to or for the benefit of the plaintiff or are otherwise available to him. The 65 court shall also take testimony of any amount which has been paid, contributed, or - 2 - 01-21 09:21 H.B. 288 66 forfeited by, or on behalf of the plaintiff or members of his immediate family to secure 67 his right to any collateral source benefit which he is receiving as a result of his injury, 68 and shall offset any reduction in the award by those amounts. Evidence may not be 69 received and a reduction may not be made with respect to future collateral source 70 benefits[ except as specified in Subsection (5)]. 71 (3) For purposes of this section "collateral source" means payments made to or for the 72 benefit of the plaintiff for: 73 (a) medical expenses and disability payments payable under the United States Social 74 Security Act, any federal, state, or local income disability act, or any other public 75 program, except the state and federal programs which are required by law to seek 76 subrogation; 77 (b) any health, sickness, or income replacement insurance, automobile accident 78 insurance that provides health benefits or income replacement coverage, and any 79 other similar insurance benefits, except life insurance benefits available to the 80 plaintiff, whether purchased by the plaintiff or provided by others; 81 (c) any contract or agreement of any person, group, organization, partnership, or 82 corporation to provide, pay for, or reimburse the costs of hospital, medical, dental, or 83 other health care services, except benefits received as gifts, contributions, or 84 assistance made gratuitously; and 85 (d) any contractual or voluntary wage continuation plan provided by employers or any 86 other system intended to provide wages during a period of disability. 87 (4) To preserve subrogation rights for amounts paid or received prior to settlement or 88 judgment, a provider of collateral sources shall, at least 30 days before settlement or trial 89 of the action, serve a written notice upon each health care provider against whom the 90 malpractice action has been asserted. The written notice shall state: 91 (a) the name and address of the provider of collateral sources; 92 (b) the amount of collateral sources paid; 93 (c) the names and addresses of all persons who received payment; and 94 (d) the items and purposes for which payment has been made. 95 [(5) Evidence is admissible of government programs that provide payments or benefits 96 available in the future to or for the benefit of the plaintiff to the extent available irrespective 97 of the recipient's ability to pay. Evidence of the likelihood or unlikelihood that the 98 programs, payments, or benefits will be available in the future is also admissible. The trier 99 of fact may consider the evidence in determining the amount of damages awarded to a - 3 - H.B. 288 01-21 09:21 100 plaintiff for future expenses.] 101 [(6)] (5) A provider of collateral sources is not entitled to recover any amount of benefits 102 from a health care provider, the plaintiff, or any other person or entity as reimbursement 103 for collateral source payments made prior to settlement or judgment, including any 104 payments made under Title 26B, Chapter 3, Part 10, Medical Benefits Recovery, except 105 to the extent that subrogation rights to amounts paid prior to settlement or judgment are 106 preserved as provided in this section. 107 [(7)] (6) All policies of insurance providing benefits affected by this section are construed in 108 accordance with this section. 109 Section 3. Section 78B-3-410 is amended to read: 110 78B-3-410 . Limitation of award of noneconomic damages in malpractice actions. 111 (1) In a malpractice action against a health care provider, an injured plaintiff may recover 112 noneconomic losses to compensate for pain, suffering, and inconvenience. The amount 113 of damages awarded for noneconomic loss may not exceed: 114 (a) for a cause of action arising before July 1, 2001, $250,000; 115 (b) for a cause of action arising on or after July 1, 2001 and before July 1, 2002, the 116 limitation is adjusted for inflation to $400,000; 117 (c) for a cause of action arising on or after July 1, 2002, and before May 15, 2010 the 118 $400,000 limitation described in Subsection (1)(b) shall be adjusted for inflation as 119 provided in Subsection (2);[ and] 120 (d) for a cause of action arising on or after May 15, 2010, $450,000[.] ; and 121 (e) for a cause of action arising on or after May 15, 2025, $950,000. 122 (2)(a) [Beginning July 1, 2002 and each July 1 thereafter until July 1, 2009] Beginning 123 July 1, 2025, the limit for damages under Subsection (1)(c) shall be adjusted for 124 inflation by the state treasurer. 125 (b) By July 15 of each year[ until July 1, 2009], the state treasurer shall: 126 (i) certify the inflation-adjusted limit calculated under this Subsection (2); and 127 (ii) inform the Administrative Office of the Courts of the certified limit. 128 (c) The amount resulting from Subsection (2)(a) shall: 129 (i) be rounded to the nearest $10,000; and 130 (ii) apply to a cause of action arising on or after the date the annual adjustment is 131 made. 132 (3) As used in this section, "inflation" means the seasonally adjusted [consumer price] 133 medical care index for all urban consumers as published by the Bureau of Labor - 4 - 01-21 09:21 H.B. 288 134 Statistics of the United States Department of Labor. 135 (4) The limit under Subsection (1) does not apply to awards of punitive damages. 136 Section 4. Effective Date. 137 This bill takes effect on May 7, 2025. - 5 -