HB 925 -- LONG-TERM CARE FACILITIES' MEDICAL MALPRACTICE
INSURANCE

SPONSOR:  Salva

COMMITTEE ACTION:  Voted "do pass" by the Committee on Insurance
Policy by a vote of 8 to 4.

This bill requires, beginning January 1, 2005, that any long-term
care facility licensed under Chapter 198, RSMo, provide at least
annually to the Department of Health and Senior Services
satisfactory evidence of a medical malpractice insurance policy
of at least $500,000.  This provision does not apply to
facilities owned by a not-for-profit organization or a public
nursing home district or to facilities with 30 or fewer beds.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $41,472
in FY 2006, $41,516 in FY 2007, and $42,574 in FY 2008.  No
impact on Other State Funds in FY 2006, FY 2007, and FY 2008.

PROPONENTS:  Supporters say that the bill was introduced because
the provision was stripped out of HB 394 in the House of
Representatives.  Nursing homes need to have medical malpractice
insurance; and since the tort reform bill passed, the rates will
be more affordable.

Testifying for the bill was Representative Salva.

OPPONENTS:  Those who oppose the bill say that there is no need
to mandate this coverage.  Because the tort reform bill passed,
rates will come down; and the market will provide more policies.
Incentives are better than mandates.  Nursing homes want to have
this coverage, but they have not carried it because of the high
price and would rather use the money to hire quality employees.

Testifying against the bill was Harvey Tettlebaum.

Marc Webb, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:20 pm