Tort Reform
HB 1123 Income Tax Credit for Malpractice Insurance Premium Increases
This bill allows for a tax credit against the state income tax if the amount paid by a licensed physician in the state for medical malpractice insurance for the taxable year exceeds the amount paid for insurance for the preceding taxable year by more than 10%. The licensed physician may claim a tax credit in an amount equal to 50% of the lesser of:
- the amount by which the amount paid for the current taxable year exceeds 110% of the amount paid for the preceding taxable year; and
- 40% of the amount paid for the preceding taxable year. If the credit allowed under this section exceeds the state income tax, the unused credit may not be carried over to any other taxable year.
Effective Date: July 1, 2004 (shall be applicable to taxable years beginning after December 31, 2003 but before January 1, 2007. It shall remain effective for a period of 3 years and sunset at the end of June 30, 2007).
For more information, please contact: Heather Barthel
HB 1237 Health Care Malpractice - Mandatory Mediation or Other Alternative Dispute Resolution Process
This bill mandates that a claim for a medical injury shall be subject to mediation or another alternative dispute resolution process and is not subject to arbitration. A claim may not be filed with a circuit court or the United
States District Court until the mediator or neutral provider files notice that the alternative dispute resolution has not been effective. The parties have 30 days from the filing date to choose a mediator or neutral provider. If they do not choose one within the 30 days, one will be assigned. At least 15 days before the initial conference, the parties shall send the mediator or neutral provider a brief written outline of the strengths and weaknesses of their respective cases but do not have to provide this information to the other party. The parties and the claims representative for each defendant shall appear at all conferences. If the parties have not agreed to a settlement and the mediator or neutral provider finds that the alternative dispute resolution has not been effective in achieving a settlement, the mediator or neutral provider shall file a written notice that the alternative dispute resolution has not been effective and send copies of the notice to the parties. Within 60 days after the filing of a notice that the alternative dispute resolution has not been effective, the claimant shall file a complaint and the certificate of qualified expert in the appropriate circuit court or the United States District Court. After filing the complaint, the plaintiff shall serve a summons and copy of the complaint on each defendant or the attorney of record for each defendant. Delay without good cause in filing a complaint may constitute grounds for dismissal. If a party joins an additional health care provider as a defendant in an action, the party shall file a certificate of qualified expert with respect to the additional health care provider.
The bill will apply only prospectively and may not be applied or interpreted to have any effect on or application to any case filed in a court before the effective date of the bill.
Effective Date: June 1, 2004
For more information, please contact: Heather Barthel
HB 1299 Task Force on Medical Malpractice
This bill established a Medical Malpractice Task Force which will assess the extent to which the cost of medical malpractice liability coverage for health care providers, including health care providers in high-risk specialties, increased in recent years; determine the causes of the increased cost of medical malpractice liability coverage for those health care providers; study any aspect of the health care, insurance, or legal systems related to medical malpractice liability; and make recommendations to address the increased costs of medical malpractice liability coverage. The Task Force will consist of the following members:
- Three members of the Senate of Maryland, appointed by the President of the Senate;
- Three members of the House of Delegates, appointed by the Speaker of the House;
- The Attorney General, or the Attorney General's designee;
- The Secretary of Health and Mental Hygiene, or the Secretary's designee;
- The Maryland Insurance Commissioner, or the Commissioner's designee;
- The Director of the Health Claims Arbitration Office, or the Director's designee;
- the Chairman of the State Board of Physicians, or the Chairman's designee;
- Three circuit court judges appointed by the Chief Judge of the Court of Appeals, in consultation with the President of the Senate and the Speaker of the House;
- Two health care consumers, one of whom shall be appointed by the President of the Senate and one of whom shall be appointed by the Speaker of the House
- The following members appointed by the Governor, in consultation with the President of the Senate and the Speaker of the House:
- One representative of the Medical and Chirurgical Faculty of Maryland;
- One representative of the Medical Mutual Liability Insurance Society of Maryland;
- One representative of the Maryland Hospital Association;
- One representative of the Maryland State Bar Association;
- One representative of the Maryland Defense Counsel;
- One representative of the Maryland Trial Lawyers Association; and
- One representative of the health insurance industry.
The Task Force shall report its findings and recommendations to the Governor, and to the General Assembly on or before December 15, 2004.
Effective Date: June 1, 2004 (The Task Force will remain
effective for a period of 7 months and end December 31, 2004)
For more information, please contact: Heather Barthel
HB 1301 Medical Malpractice Insurance - Rates and Rate Filings
This bill provides that with regard to medical malpractice insurance rates due consideration be given to total investment income. It also provides that a rate is considered excessive if the rate does not reflect the total investment income that the insurer reasonably can be expected to earn on all its assets during the period that the rate is in effect or for any other reason the rate is unreasonably high for the insurance coverage. The information provided in support of a filing for a medical malpractice insurance rate shall include a memorandum explaining the methodology the filer used to reflect the total investment income that the insurer reasonably expects to earn on all of its assets during the period that the proposed rate will be in effect.
Effective Date: October 1, 2004
For more information, please contact: Heather Heather
