House File 2040 - Introduced HOUSE FILE 2040 BY KRESSIG A BILL FOR An Act relating to damage awards against health care providers, 1 and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5139YH (2) 91 lh/jh

H.F. 2040 Section 1. Section 147.136A, subsection 1, paragraph b, 1 Code 2026, is amended to read as follows: 2 b. (1) “Noneconomic damages” means damages arising from 3 pain, suffering, inconvenience, physical impairment, mental 4 anguish, emotional pain and suffering, loss of chance, loss of 5 consortium, or any other nonpecuniary damages. 6 (2) “Noneconomic damages” does not include the loss of 7 dependent care, including the loss of child care, due to the 8 death of or severe injury to a spouse or parent who is the 9 primary caregiver of a child under the age of eighteen or a 10 disabled adult. Such damages shall be considered economic 11 damages. 12 Sec. 2. Section 147.136A, subsection 2, Code 2026, is 13 amended to read as follows: 14 2. Subject to subsection 4 , the The total amount recoverable 15 in any civil action for noneconomic damages for personal injury 16 or death, whether in tort, contract, or otherwise, against a 17 health care provider for any occurrence resulting in injury 18 or death of a patient regardless of the number of plaintiffs, 19 derivative claims, theories of liability, or defendants in 20 the civil action, shall not exceed two hundred fifty thousand 21 dollars unless the jury determines that there is a substantial 22 or permanent loss or impairment of a bodily function, 23 substantial disfigurement, loss of pregnancy, or death, which 24 warrants a finding that imposition of such a limitation would 25 deprive the plaintiff of just compensation for the injuries 26 sustained , in which case the amount recoverable shall not 27 exceed one million dollars, or two million dollars if the civil 28 action includes a hospital as defined in section 135B.1 . 29 Sec. 3. Section 147.136A, subsection 4, Code 2026, is 30 amended by striking the subsection. 31 Sec. 4. Section 668A.1, subsection 2, paragraphs a and b, 32 Code 2026, are amended to read as follows: 33 a. If the answer or finding pursuant to subsection 1 , 34 paragraph “b” , is affirmative, or if the claim is against any 35 -1- LSB 5139YH (2) 91 lh/jh 1/ 4

H.F. 2040 physician and surgeon, osteopathic physician and surgeon, 1 dentist, podiatric physician, optometrist, pharmacist, 2 chiropractor, physician assistant, or nurse, licensed under 3 chapter 147 , or a hospital licensed under chapter 135B , arising 4 out of patient care, or if the claim is part of a civil action 5 involving the operation of a commercial motor vehicle, then the 6 full amount of the punitive or exemplary damages awarded shall 7 be paid to the claimant. 8 b. If the answer or finding pursuant to subsection 1 , 9 paragraph “b” , is negative, and if the claim is not against 10 any physician and surgeon, osteopathic physician and surgeon, 11 dentist, podiatric physician, optometrist, pharmacist, 12 chiropractor, physician assistant, or nurse, licensed under 13 chapter 147 , or a hospital licensed under chapter 135B , 14 arising out of patient care, and if the claim is not part of 15 a civil action involving the operation of a commercial motor 16 vehicle, then after payment of all applicable costs and fees, 17 an amount not to exceed twenty-five percent of the punitive or 18 exemplary damages awarded may be ordered paid to the claimant, 19 with the remainder of the award to be ordered paid into a 20 civil reparations trust fund administered by the state court 21 administrator. Funds placed in the civil reparations trust 22 shall be under the control and supervision of the executive 23 council, and shall be disbursed only for purposes of indigent 24 civil litigation programs or insurance assistance programs. 25 Sec. 5. APPLICABILITY. This Act applies to causes of action 26 accrued on or after the effective date of this Act. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill relates to damage awards against health care 31 providers. 32 Current law does not include the loss of dependent or child 33 care due to the death or severe injury to a spouse or parent 34 who is the primary caregiver as noneconomic damages when 35 -2- LSB 5139YH (2) 91 lh/jh 2/ 4

H.F. 2040 determining damage awards against a health care provider. The 1 bill strikes this limitation on noneconomic damages. 2 Current law provides a limit of $250,000 that may be 3 recovered in any civil action for noneconomic damages for 4 personal injury or death against a health care provider unless 5 there is a substantial or permanent loss or impairment of a 6 bodily function, substantial disfigurement, loss of pregnancy, 7 or death. The bill removes loss of pregnancy as an exception 8 to this noneconomic damage limit. 9 Current law limits the amount of noneconomic damages that 10 a jury can award a plaintiff if there is a substantial or 11 permanent loss or impairment of a bodily function, substantial 12 disfigurement, loss of pregnancy, or death to $1 million, or 13 $2 million if the civil action includes a hospital. The bill 14 strikes this limitation on the amount of noneconomic damages 15 a jury can award a plaintiff. 16 The bill strikes the 2.1 percent increase to the $250,000, $1 17 million, and $2 million caps under current law. 18 The bill strikes the requirement that an award for punitive 19 or exemplary damages shall be paid to the claimant if the claim 20 is against any physician and surgeon, osteopathic physician and 21 surgeon, dentist, podiatric physician, optometrist, pharmacist, 22 chiropractor, physician assistant, nurse, or a hospital, 23 arising out of patient care. 24 Current law provides that if a jury or court finds that 25 the conduct of the defendant was not directed specifically at 26 the claimant, or the person from which the claimant’s claim 27 is derived, and if the claim is not against any physician and 28 surgeon, osteopathic physician and surgeon, dentist, podiatric 29 physician, optometrist, pharmacist, chiropractor, physician 30 assistant, nurse, or a hospital licensed, arising out of 31 patient care, and if the claim is not part of a civil action 32 involving the operation of a commercial motor vehicle, then no 33 more than 25 percent of the punitive or exemplary damages shall 34 be paid to the claimant. The bill strikes the requirement that 35 -3- LSB 5139YH (2) 91 lh/jh 3/ 4

H.F. 2040 the claim not be against any physician and surgeon, osteopathic 1 physician and surgeon, dentist, podiatric physician, 2 optometrist, pharmacist, chiropractor, physician assistant, 3 nurse, or a hospital licensed, arising out of patient care. 4 The bill applies to causes of action accrued on or after July 5 1, 2026. 6 -4- LSB 5139YH (2) 91 lh/jh 4/ 4