SF 2220 (LSB 6098XS (4) 90)

SENATE FILE 2220

BY  DONAHUE

A BILL FOR

An Act relating to noneconomic, punitive, and exemplary damage awards against health care providers and hospitals.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 147.136A, subsection 1, paragraph b, Code 2024, is amended to read as follows:
   b.  (1)  “Noneconomic damages” means damages arising from pain, suffering, inconvenience, physical impairment, mental anguish, emotional pain and suffering, loss of chance, loss of consortium, or any other nonpecuniary damages.
   (2)  “Noneconomic damages” does not include the loss of dependent care, including the loss of child care, due to the death of or severe injury to a spouse or parent who is the primary caregiver of a child under the age of eighteen or a disabled adult. Such damages shall be considered economic damages.
    Sec. 2.  Section 147.136A, subsection 2, Code 2024, is amended to read as follows:
   2.  Subject to subsection 4, the The total amount recoverable in any civil action for noneconomic damages for personal injury or death, whether in tort, contract, or otherwise, against a health care provider shall be limited to two hundred fifty thousand dollars for any occurrence resulting in injury or death of a patient regardless of the number of plaintiffs, derivative claims, theories of liability, or defendants in the civil action, shall not exceed two hundred fifty thousand dollars unless the jury determines that there is a substantial or permanent loss or impairment of a bodily function, substantial disfigurement, loss of pregnancy, or death, which warrants a finding that imposition of such a limitation would deprive the plaintiff of just compensation for the injuries sustained, in which case the amount recoverable shall not exceed one million dollars, or two million dollars if the civil action includes a hospital as defined in section 135B.1.
    Sec. 3.  Section 147.136A, subsection 4, Code 2024, is amended by striking the subsection.
    Sec. 4.  Section 668A.1, subsection 2, paragraphs a and b, Code 2024, are amended to read as follows:
   a.  If the answer or finding pursuant to subsection 1, paragraph “b”, is affirmative, or if the claim is against any physician and surgeon, osteopathic physician and surgeon, dentist, podiatric physician, optometrist, pharmacist, chiropractor, physician assistant, or nurse, licensed under chapter 147, or a hospital licensed under chapter 135B, arising out of patient care, or if the claim is part of a civil action involving the operation of a commercial motor vehicle, then the full amount of the punitive or exemplary damages awarded shall be paid to the claimant.
   b.  If the answer or finding pursuant to subsection 1, paragraph “b”, is negative, and if the claim is not against any physician and surgeon, osteopathic physician and surgeon, dentist, podiatric physician, optometrist, pharmacist, chiropractor, physician assistant, or nurse, licensed under chapter 147, or a hospital licensed under chapter 135B, arising out of patient care, and if the claim is not part of a civil action involving the operation of a commercial motor vehicle, then after payment of all applicable costs and fees, an amount not to exceed twenty-five percent of the punitive or exemplary damages awarded may be ordered paid to the claimant, with the remainder of the award to be ordered paid into a civil reparations trust fund administered by the state court administrator. Funds placed in the civil reparations trust shall be under the control and supervision of the executive council, and shall be disbursed only for purposes of indigent civil litigation programs or insurance assistance programs.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   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.