Capitol Research Services of Texas > Reports

Liability of Health Insurers, HMOs, and Other Managed Care Entities (1997)

  • Senate Bill 386 (1997)
  • Chapter 88, Civil Practice and Remedies Code
  • Report: 220 pages
  • Fee: $395

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Abstract

The 75th Texas Legislature passed S.B. 386 in 1997. The bill created Chapter 88 of the Civil Practice and Remedies Code to hold health insurance carriers, HMOs, and other managed care entities liable for failure to exercise ordinary care when making health treatment decisions.

The House Insurance Committee prepared a bill analysis which reviewed the background and purpose of the bill.

Background

Currently, Texas law prohibits the corporate practice of medicine. This prevents managed care organizations from being held legally accountable when making health care treatment decisions which affect the quality of the diagnosis, care and treatment of an enrollee of a health care plan.
This bill will require health benefit plans and managed care entities to exercise ordinary care when making health care treatment decisions and will hold those entities liable for damages for harm to an insured or enrollee proximately caused by the health care entity's failure to exercise ordinary care.

Purpose

As substituted, C.S.S.B. 386 requires health benefit plans and managed care entities to exercise ordinary care when making health care treatment decisions and holds those entities liable for damages for harm to an insured or enrollee proximately caused by the health care entity's failure to exercise ordinary care.

Exhibits

1997

1. Tex. S.B. 386, 75th Leg., R.S., Master Bill History Report (1997)
2. Tex. S.B. 386, As Introduced, 75th Leg., R.S. (1997)
3. Tex. S.B. 386, Senate Committee Report, 75th Leg., R.S. (1997)
4. Tex. S.B. 386, House Committee Report, 75th Leg., R.S. (1997)
5. Senate Staff Services, Hearings on S.B. 386 Before the Senate Committee on Economic Development, 75th Leg. R.S. (February 18, 1997)
6. Senate Staff Services, Hearings on S.B. 386 Before the Senate Committee on Economic Development, 75th Leg. R.S. (February 25, 1997)
7. Senate Staff Services, Debate on S.B. 386 On the Floor of the Senate (Second and Third Readings), 75th Leg. R.S. (March 17, 1997)
8. Capitol Research Services, Hearings on S.B. 386 Before the House Committee on Insurance, 75th Leg. R.S., (April 2, 1997)
9. Capitol Research Services, Hearings on S.B. 386 Before the House Committee on Insurance, 75th Leg. R.S., (April 7, 1997)
10. Capitol Research Services, Debate on S.B. 386 On the Floor of the House (Second Reading), 75th Leg. R.S. (May 7, 1997)
11. Capitol Research Services, Debate on S.B. 386 On the Floor of the House (Third Reading), 75th Leg. R.S. (May 8, 1997)
12. Capitol Research Services, Debate on S.B. 386 On the Floor of the House (House Amendments), 75th Leg. R.S. (May 10, 1997)
13. Capitol Research Services, Debate on S.B. 386 On the Floor of the House (House Amendments), 75th Leg. R.S. (May 12, 1997)
14. S.J. of Tex., 75th Leg., R.S. 588-592, 1815, 1866 (1997)
15. House Research Organization, S.B. 386 Bill Analysis (May 7, 1997)
16. H.J. of Tex., 75th Leg., R.S. 2035-2-46, 2108 (1997)
17. Act of May 12, 1997, 75th Leg., R.S., ch. 163, 1997 Tex. Gen. Laws
18. Texas Civil Practice & Remedies Code, Chapter 88 (Vernon 2004)