Amid unprecedentedly higher verdicts lately awarded in Nebraska and other Midwest states, two expenses were launched this thirty day period in the Nebraska Legislature to amend sections of the Nebraska Clinic-Professional medical Legal responsibility Act (“Act”). Under this Act, damages from capable healthcare providers for clinical malpractice promises are capped at $2.25 million. To be a competent provider below the Act, health care providers have to be insured in the amount of $500,000 for every single prevalence and $1 million for all occurrences in any policy year. Hospitals are essential to be insured in the volume of $500,000 for every prevalence and $3 million bucks for all occurrences in any policy calendar year. For damages awarded against capable vendors exceeding $500,000, the Excessive Legal responsibility Fund will pay back for remaining amounts authorized underneath the destruction cap.
Legislative Invoice 68 – L.B. 68, 2023 Leg., 180th Sess. (Neb. 2023)
LB 68 will increase the demanded legal responsibility insurance coverage for providers to $1 million/occurrence and $3 million for all occurrences in a coverage year. The Extra Legal responsibility Fund would only address damages that exceed $1 million. Fundamentally, the volume of needed insurance plan for experienced suppliers doubles, but the $2.25 million damages cap would nevertheless apply.
Legislative Bill 351 – L.B. 351, 2023 Leg., 180th Sess. (Neb. 2023)
LB 351 calls for healthcare companies to carry legal responsibility insurance plan $10 million/incidence and $20 million for all occurrences in a plan calendar year. The needed insurance for hospitals would be $10 million/occurrence and $30 million for all occurrences in a coverage yr. This bill eliminates the damages cap for any prevalence ensuing in any “catastrophic injury” or dying. Notably, LB 351 does not define “catastrophic injuries.” For all other statements or occurrences arising immediately after December 31, 2023, wellness treatment providers are liable for up to $10 million in damages. The overall sum paid out from the Surplus Legal responsibility Fund are not able to not exceed $30 million. Statements demanding payment from the Extra Liability Fund are paid in the purchase in which they are obtained. Any unsatisfied amount carries ahead to the subsequent calendar right until the declare is glad.
If the injury cap significantly improves for promises beneath the Nebraska Medical center-Health-related Liability Act, there will probable be a significant improve in health care costs in the State of Nebraska. This contradicts the policy rationale for the cap and the generation of the Nebraska Excessive Legal responsibility Fund, which have led to decreased health treatment expenses and amplified availability of wellness treatment for the citizens of Nebraska. LB 351 would very likely reverse this progress. It will be crucial for health care providers, hospitals, and insurers to keep up-to-date on the status of LB 68 and LB 351.