WHAT EVERY PHYSICIAN

NEEDS TO KNOW: TEXAS TORT REFORM 2015

1 HISTORY OF TORT REFORM

• Inthemid1990s,anout-of-controllegalsystemledtoanupwardtrendinTexasmedicalliabilityclaimfrequencyandseverity.

• Bytheearly2000s,Texaswasinfullmedicalliabilitycrisis.Manyinsurersleftthestate,curtailedthebusinesstheywrote,orwentoutofbusinessaltogether.

• Unabletofindaffordablemalpracticeinsurance,physicianschangedtheirpracticestructure,stoppedperforminghigh-riskprocedures,leftthestate,orretiredearly.Theendresult:patientshadrestrictedaccesstohealthcare.

2 TMLT’S ROLE IN TORT REFORM

SUCCESS• TMLThelpedfoundtheTexasAllianceforPatientAccess(TAPA),aconsortiumofmorethan200healthcareprovidersandmedicalliabilitycarriers.TAPAanalyzedmedicalliabilitytortlawsandassistedindraftinglegislationtoimprovethem.

• In2003,theTexaslegislaturepassedHouseBill4,TheTexasMedicalLiabilityAct,thatincludesthecornerstoneofthereforms:a$250,000caponnon-economicdamages.Thenewlawdidnotlimiteconomicdamagesformeritoriousclaims,butcreatedanoverallmaximumamountpercaseof$750,000fornon-economicdamages.

3• InSeptember2003,TexasvoterspassedProposition12,aconstitutionalamendmentthatauthorizedthelegislaturetosetliabilitycaps.ThecapssetoutinHB4havewithstoodalljudicialchallengestodate.

• TMLTwasthefirstphysiciancarriertoreduceratesafterthefavorablevoteonProposition12.Ingeneral,physiciansinTexasarepayinglessthanhalfformedicalliabilityinsurancethanbeforetortreform.

TMLT’S ROLE IN TORT REFORM

SUCCESS

4 NEW MEDICAL LIABILITY THREAT

HAS SURFACED• ArecentrulingintheCourtofAppealsoftheStateofNewMexico,Montaño

v. Frezza,heldthataNewMexicoresidenttreatedinTexasbyaTexasphysiciancouldfilesuitagainstthatphysicianinNewMexicoandsubjectthephysiciantoNewMexicolaw.

• Ifthisrulingstands,TexasphysicianswillbenegativelyimpactedbecauseNewMexicolawsdonotofferthesameprotectionsaseithertheTexasTortClaimsActortheTexasMedicalLiabilityAct(HB4).

5 NEW MEDICAL LIABILITY THREAT

HAS SURFACED• Theresultscouldmimicpre-tortreformissuesinTexas:

• higherinsuranceliabilitypremiums;• lessavailabilityofspecialtyandhighriskcare;and• areluctanceofnewphysicianstorelocatetoorstayinthearea.

• NewMexicopatientswholivealongtheNewMexico/TexasborderareatriskforlosingaccesstohealthcareinTexas.Texasphysiciansaremorelikelytorestrictelectivecaretothesepatientsratherthansubmittoliabilitylawsreminiscentofthepre-tortreformyears.

6 WHAT TMLT IS DOING & WHY

• TMLTisactivelyengagedinthisissuebecausethisrulingcouldclosethedoortoaccessiblemedicalcareattheTexas/NewMexicoborder.Manyhealthcareproviderswouldnotbeabletoaccepttheeconomicburdenthatwouldresultfromtheincreasedliabilityexposure.

• TMLTbelievesthedecisioninMontañoiscontrarytothepublicpolicythatpromotesgreateraccesstohealthcare,andissubmittinganamicusbrieftotheNewMexicoSupremeCourt.

7 THANKS & HOW TO STAY

INFORMED• WeappreciatethewidespreadparticipationandsupportprovidedtousbyphysiciansandhealthcarerelatedentitiesstatewideandinNewMexico.

• Toprovideyourfeedbackorlearnmore,pleasecontactJillMcLain,TMLTGovernmentalRelations,atjill-mclain@tmlt.org.

• Tostayup-to-dateonthisissue,pleasevisittheTMLTNewscenterwherewewillsharethelatestnews.

8ABOUT TMLT:Withmorethan17,500physiciansinitscare,TexasMedicalLiabilityTrust(TMLT)providesmalpracticeinsuranceandrelatedproductstophysicians.Ourpurposeistomakeapositiveimpactonthequalityofhealthcareforpatientsbyeducating,protecting,anddefendingphysicians.www.tmlt.org

Find us on:

PROTECTION FOR A NEW ERA OF

MEDICINE