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IA SF84

A bill for an act relating to noneconomic, punitive, and exemplary damage awards against health care providers and hospitals.


summary

Introduced
01/22/2025
In Committee
01/22/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill relates to noneconomic, punitive, and exemplary damage awards against health care providers. Under current law, the damages for loss of dependent care due to death of or severe injury to a spouse or parent who is the primary caregiver are considered economic damages. The bill repeals this provision and provides that economic damages do not include loss of dependent care. Current law limits the amount of noneconomic damages that a jury can award a plaintiff to $250,000, but provides an exception for cases where a jury finds that there is a substantial or permanent loss or impairment of a bodily function, substantial disfigurement, loss of pregnancy, or death in which case the limit is increased to $1 million, or $2 million if the action includes a hospital. The bill provides that if the exception to the $250,000 cap applies, there is no limit to the amount of noneconomic damages that may be awarded, and removes loss of pregnancy as a qualifying exception. Current law provides for a 2.1 percent annual increase in the damages cap. The bill repeals this provision. Under current law, punitive or exemplary damages may be awarded if, by a preponderance of clear, convincing, and satisfactory evidence, the conduct of the defendant from which the claim arose constituted willful and wanton disregard for the rights or safety of another. In cases involving a medical provider or hospital and arising out of medical care, the full amount of the award of punitive or exemplary damages shall be paid to the claimant. Under the bill, in cases involving a medical provider or hospital and arising out of medical care, the amount of punitive and exemplary damages paid to a claimant shall not exceed 25 percent, with the remainder awarded to the civil reparations trust fund, unless the conduct of the defendant was directed specifically at the claimant, or at the person from which the claimant’s claim is derived. Funds in the civil reparations trust are used for purposes of indigent civil litigation programs or insurance assistance programs.

AI Summary

This bill modifies several aspects of damage awards in civil lawsuits involving healthcare providers. First, it eliminates the current provision that considers loss of dependent care (such as child care due to a parent's death or severe injury) as economic damages, now classifying such losses solely as noneconomic damages. The bill maintains the existing $250,000 cap on noneconomic damages but removes previous exceptions that would have increased the cap to $1 million or $2 million, including removing "loss of pregnancy" as a qualifying exception for a higher damage limit. Additionally, the bill changes how punitive or exemplary damages are distributed in medical malpractice cases: instead of the claimant receiving the full amount, they will now receive only 25% of such damages, with the remaining 75% going to a civil reparations trust fund, unless the defendant's conduct was specifically directed at the claimant. The trust fund will use these funds to support indigent civil litigation and insurance assistance programs. The bill also repeals a previous provision for annual increases to the damage caps.

Committee Categories

Justice

Sponsors (1)

Last Action

Subcommittee: Schultz, Blake, and Bousselot. S.J. 136. (on 01/23/2025)

bill text


bill summary

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