HF 2040 (LSB 5139YH (2) 91)

HOUSE FILE 2040

BY  KRESSIG

A BILL FOR

An Act relating to damage awards against health care providers, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 147.136A, subsection 1, paragraph b, Code 2026, 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 2026, 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 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 2026, is amended by striking the subsection.
    Sec. 4.  Section 668A.1, subsection 2, paragraphs a and b, Code 2026, 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.
    Sec. 5.  APPLICABILITY.  This Act applies to causes of action accrued on or after the effective date of this Act.
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 damage awards against health care providers.
   Current law does not include the loss of dependent or child care due to the death or severe injury to a spouse or parent who is the primary caregiver as noneconomic damages when determining damage awards against a health care provider. The bill strikes this limitation on noneconomic damages.
   Current law provides a limit of $250,000 that may be recovered in any civil action for noneconomic damages for personal injury or death against a health care provider unless there is a substantial or permanent loss or impairment of a bodily function, substantial disfigurement, loss of pregnancy, or death. The bill removes loss of pregnancy as an exception to this noneconomic damage limit.
   Current law limits the amount of noneconomic damages that a jury can award a plaintiff if there is a substantial or permanent loss or impairment of a bodily function, substantial disfigurement, loss of pregnancy, or death to $1 million, or $2 million if the civil action includes a hospital. The bill strikes this limitation on the amount of noneconomic damages a jury can award a plaintiff.
   The bill strikes the 2.1 percent increase to the $250,000, $1 million, and $2 million caps under current law.
   The bill strikes the requirement that an award for punitive or exemplary damages shall be paid to the claimant if the claim is against any physician and surgeon, osteopathic physician and surgeon, dentist, podiatric physician, optometrist, pharmacist, chiropractor, physician assistant, nurse, or a hospital, arising out of patient care.
   Current law provides that if a jury or court finds that the conduct of the defendant was not directed specifically at the claimant, or the person from which the claimant’s claim is derived, and if the claim is not against any physician and surgeon, osteopathic physician and surgeon, dentist, podiatric physician, optometrist, pharmacist, chiropractor, physician assistant, nurse, or a hospital licensed, 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 no more than 25 percent of the punitive or exemplary damages shall be paid to the claimant. The bill strikes the requirement that the claim not be against any physician and surgeon, osteopathic physician and surgeon, dentist, podiatric physician, optometrist, pharmacist, chiropractor, physician assistant, nurse, or a hospital licensed, arising out of patient care.
   The bill applies to causes of action accrued on or after July 1, 2026.