Three Years in the Making: Senate Passes Key Tort Reform Legislation

Legislative News

As I promised last Thursday, the Senate dedicated much of this week to tort reform legislation. I’m very pleased to say, today (3-12), my colleagues and I third read and passed Senate Bill 239, key legislation that addresses the ongoing issues Missouri’s health care providers have been facing since a Missouri Supreme Court decision effectively removed the caps on non-economic damages in medical malpractice cases.

In 2005, Missouri lawmakers passed legislation instituting a $350,000 cap on non-economic damages in order to decrease the number of frivolous lawsuits, stabilize medical malpractice insurance rates and keep doctors in Missouri. The cap worked. Unfortunately, on July 31, 2012, the Missouri Supreme Court declared the cap unconstitutional by ruling that it violated the right to a trial by jury. Since then, the Legislature has been trying to reestablish those caps before too much damage can be done.

Over the last three years, medical malpractice insurance rates for doctors practicing in certain specialties have doubled, and even tripled, effectively pricing them out of being able to practice in Missouri. In fact, we have lost so many doctors that Missouri has since become a “net exporter” of physicians, meaning the number of Missouri-trained physicians who choose to practice outside the state is greater than the number who choose to practice inside the state. Unfortunately, this is just the beginning of what could happen.

Due to increased economic pressure, hospitals eventually may have to close their doors or merge with another hospital to stay afloat. For the health of Missourians and the sake of Missouri’s economy, we cannot let this happen. Senate Bill 239 provides a way to create stability for insurance providers and physicians, while also protecting Missouri citizens.

Specifically, SB 239 creates a statutory cause of action for damages against health care providers for personal injury or death arising out of the rendering of or failure to render health care services. In such action against a health care provider, a plaintiff cannot recover more than $400,000 in non-economic damages for personal injury; no more than $700,000 in non-economic damages for a catastrophic personal injury; and no more than $700,000 in non-economic damages for death. To adjust for rising expenses, these limitations will increase by 1.7 percent each year.

Shown above, Lauren Miller and her parents, Patrick and Julie Miller, with Sen. Richard in the Senate Chamber on March 5.

There has always been a genuine concern that caps have the potential to do the greatest amount of harm to the individuals who need the most help—those who require the most extensive and prolonged medical care as a result of medical negligence. This is why, in addition to the provisions above, SB 239 includes a safeguard, whenever a jury returns a verdict awarding non-economic damages in excess of $400,000, and upon a post-trial motion, the trial court retains the power to determine whether the limitations of the act shall apply, meaning a court could choose to grant a larger sum than the jury originally awarded.

Tort reform is a complex area that was always going to require compromise, and we have tried very hard with SB 239 to address the court’s original reasoning for declaring caps unconstitutional. While the measure goes too far for some, it doesn’t go far enough for others. However, I think we can all agree the very last thing we want to see happen is for our doctors to leave the state and our life-saving hospitals to close their doors.

Finally, I was pleased to meet with Lauren Miller and her parents, Patrick and Julie Miller, all of Fairview, Mo., on Thursday, March 5. Lauren and her parents were visiting the Capitol with Group TeenPact.

Helpful Consumer Financial Information

This week, the Missouri Credit Union Association offers information to help you identify identity theft. It’s estimated that one in three Missourians are affected by the theft of personal information from a health insurance company. Nationwide, 10 million Americans have their personal information compromised each year. Often, the stolen information is used to take over accounts or open credit cards long before the theft is ever discovered. While many people first find out about identity fraud from their financial institution, there are some red flags you can watch for that may indicate identify theft.

Here are five common signs of identity theft:

• Unexplained charges or withdrawals – Check your financial account statements each month, and be sure you recognize the transactions. Thieves will often make small test purchases first, so don't ignore small charges that seem unfamiliar.
• New credit cards you didn't apply for – If you receive an unexpected credit card in the mail, contact the company issuing the card right away. Similarly, any statements that arrive for unknown accounts are a red flag.
• Collection notices or calls for unknown debt – Don't assume the information is in error. Find out what the debt is for. If you believe the debt isn't valid, send a letter via certified mail to the collection agency requesting proof of the debt and creditor within 30 days.
• Your credit card or application for credit is denied – If you haven't reached your credit limit or normally have good credit, ask the reason for the denial. An identity thief may be racking up debt on your behalf or ruining your credit score with unpaid bills.
• Missing mail or email – Haven't seen a monthly statement in a few months? A thief could be stealing your mail or may have changed the mailing or email address on the account to keep you from seeing fraudulent charges. Alternately, you may receive notice from the post office that your mail is being forwarded to another address when you haven't requested a change of address.

Take action
If you think you might be a victim of identity theft, act quickly. Here's what to do.

Safeguard your identity
Some credit unions offer discounts on credit monitoring software. This will help monitor your credit, alert you to potential fraud and restore your identity in the event of theft.