BILL REQ. #: H-0791.3
State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 02/08/2005. Referred to Committee on Judiciary.
AN ACT Relating to compensation for birth-related injuries; adding a new section to chapter 18.130 RCW; adding a new section to chapter 70.41 RCW; adding a new section to chapter 18.46 RCW; adding a new section to chapter 51.52 RCW; adding a new section to chapter 7.70 RCW; adding a new chapter to Title 7 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1
(a) Physicians and advanced registered nurse practitioners
practicing obstetrics are high-risk medical specialists for whom
malpractice insurance premiums are very costly, and recent increases in
such premiums have been greater for such physicians than for other
physicians.
(b) Because obstetric services are essential and the state of
Washington currently pays for almost half of the births in the state
through its medical assistance programs, it is incumbent upon the
legislature to provide a plan designed to result in the stabilization
and reduction of malpractice insurance premiums for providers of
obstetric services in Washington.
(c) The costs of birth-related injury claims are particularly high
and warrant the establishment of a limited system of compensation
irrespective of fault. The issue of whether such claims are covered by
this chapter must be determined exclusively in an administrative
proceeding.
(2) It is the intent of the legislature to provide compensation, on
a no-fault basis, for a limited class of birth-related injuries that
result in high costs for custodial care and rehabilitation. This plan
applies only to birth-related injuries.
NEW SECTION. Sec. 2
(1) "Advanced registered nurse practitioner" means an advanced
registered nurse practitioner licensed under chapter 18.79 RCW.
"Advanced registered nurse practitioner" does not include an advanced
registered nurse practitioner who practices medicine as an officer,
employee, or agent of the federal government.
(2) "Association" means the Washington birth-related injury
compensation association established in section 18 of this act.
(3) "Birth-related injury" means injury to a live infant at birth
caused by oxygen deprivation or mechanical injury, occurring in the
course of labor, delivery, or resuscitation in the immediate
postdelivery period in a hospital or childbirth center, that renders
the infant permanently and significantly mentally or physically
impaired in one or more major life activities. This definition applies
to live births only and does not include disability or death caused by
genetic or congenital abnormality.
(4) "Board" means the board of industrial insurance appeals
established in chapter 51.52 RCW, or an industrial appeals judge
appointed by the board to hear and determine claims filed under this
chapter.
(5) "Childbirth center" means a facility licensed under chapter
18.46 RCW.
(6) "Claimant" means any person who files a claim under this
chapter for compensation for a birth-related injury to an infant.
(7) "Family member" means a biological or adoptive father, mother,
grandparent, or legal guardian.
(8) "Family residential or custodial care" means care normally
rendered by trained professional attendants that is beyond the scope of
child care duties, but is provided by family members.
(9) "Hospital" means any facility licensed under chapter 70.41 RCW.
(10) "Physician" means a physician licensed under chapter 18.71
RCW, or an osteopathic physician licensed under chapter 18.57 RCW.
"Physician" does not include a physician who practices medicine as an
officer, employee, or agent of the federal government.
(11) "Plan" means the Washington birth-related injury compensation
plan.
NEW SECTION. Sec. 3
(2) The rights and remedies granted by this plan on account of a
birth-related injury that is covered by this chapter are exclusive and
preclude all other rights and remedies at common law or otherwise of
the claimant arising out of or related to a medical negligence claim
with respect to the injury against any person or entity directly
involved in the labor, delivery, or immediate postdelivery
resuscitation during which the injury occurs. A civil action is not
foreclosed under this section when:
(a) There is a preponderance of the evidence showing that the acts
or omissions of the hospital, childbirth center, physician, or advanced
registered nurse practitioner were made in bad faith or with malicious
purpose or willful or wanton disregard of human rights, safety, or
property; and
(b) The suit is filed prior to and in lieu of payment of an award
under this chapter.
NEW SECTION. Sec. 4
NEW SECTION. Sec. 5
(a) The name and address of the claimant and his or her attorney,
if any;
(b) The name and address of the injured infant;
(c) The name and address of any physician or advanced registered
nurse practitioner who provided obstetrical services at the birth and
the name and address of the hospital or childbirth center at which the
birth occurred;
(d) A description of the disability resulting from the injury for
which the claim is made;
(e) The time and place the injury occurred; and
(f) A brief statement of the facts and circumstances surrounding
the injury and giving rise to the claim.
(2) The claimant shall furnish the board with as many copies of the
petition as required for service upon the association, any physician,
advanced registered nurse practitioner, hospital, or childbirth center
named in the petition, and the department of health, along with a
twenty dollar filing fee payable to the department of labor and
industries. Upon receipt of the petition, the board shall immediately
serve the association, by service upon the agent designated to accept
service on behalf of the association, by registered or certified mail,
and shall mail copies of the petition, by registered or certified mail,
to any physician, advanced registered nurse practitioner, hospital, or
childbirth center named in the petition, and shall furnish a copy of
the petition by regular mail to the department of health.
(3)(a) The claimant shall furnish to the association the following
information, which must be filed with the association within ten days
after the filing of the petition as set forth in subsection (1) of this
section:
(i) All available relevant medical records relating to the
birth-related injury and a list identifying any unavailable records
known to the claimant and the reasons for the records' unavailability;
(ii) Appropriate assessments, evaluations, and prognoses, and other
records and documents that are reasonably necessary for the
determination of the amount of compensation to be paid to, or on behalf
of, the injured infant on account of the birth-related injury;
(iii) Documentation of expenses and services incurred to date that
identifies any payment made for such expenses and services and the
payer; and
(iv) Documentation of any applicable private or government source
of services or reimbursement related to the disability resulting from
the injury.
(b) The information required by (a) of this subsection remains
confidential and exempt under section 18(4) of this act and is exempt
from disclosure under chapter 42.17 RCW.
(4) The association has forty-five days from the date of service of
a petition, filed under this section, in which to file a response to
the petition and to submit to the board relevant written information
relating to the issue of whether the injury alleged is a birth-related
injury.
NEW SECTION. Sec. 6
NEW SECTION. Sec. 7
NEW SECTION. Sec. 8
(2) Any party to a proceeding under this chapter may, upon
application to the board setting forth the materiality of the evidence
to be given, serve interrogatories or cause the depositions of
witnesses residing within or without the state to be taken, the costs
thereof to be taxed as expenses incurred in connection with the filing
of a claim. Depositions shall be taken after giving notice to the
parties and in the manner prescribed for the taking of depositions
under chapter 51.52 RCW.
NEW SECTION. Sec. 9
(a) Whether the injury claimed is a birth-related injury. There is
a rebuttable presumption that the injury is a birth-related injury if
the claimant demonstrates, to the satisfaction of the board, that the
infant sustained an injury at birth caused by oxygen deprivation or
mechanical injury and that the infant was thereby rendered permanently
and significantly mentally or physically impaired in one or more major
life activities; and
(b) How much compensation, if any, is awardable pursuant to section
10 of this act.
(2) If the board determines that the injury claimed is not a
birth-related injury, an order denying the claim shall be entered and
a copy of the order must be sent immediately to the parties by
registered or certified mail.
(3) A physician or advanced registered nurse practitioner is bound
for all purposes by the finding of the board or any court considering
an appeal of an order of the board with respect to whether the injury
is a birth-related injury.
(4) If it is in the interest of judicial economy or if requested by
the claimant, the board may bifurcate the proceeding and address the
issue of whether the injury is a birth-related injury first. An award
pursuant to section 10 of this act, if any, can be considered in a
separate proceeding. The board may issue a final order on whether the
injury is a birth-related injury that is subject to appeal under
section 11 of this act, before issuance of an award under section 10 of
this act.
NEW SECTION. Sec. 10
(i) Actual expenses for: Medically necessary and reasonable
medical and hospital services, habilitative and training services,
family residential or custodial care, professional residential care,
and in-home custodial care; medically necessary drugs, special
equipment, and facilities; and related travel. Family members who
provide nonprofessional residential or custodial care may not be
compensated under this chapter for care that falls within the scope of
child care duties and other services normally and gratuitously provided
by family members. Family residential or custodial care shall be
performed only at the direction and control of a physician when such
care is medically necessary. Reasonable charges for expenses for
family residential or custodial care provided by a family member shall
be equal to the rates established by medicaid for services provided by
home care workers. A family member or a combination of family members
providing care in accordance with this section may not be compensated
for more than a total of ten hours per day. No professional
residential or custodial care may be awarded for the period of time
during the day that family residential or custodial care is being
provided.
(ii) Actual expenses shall not include:
(A) Expenses for items or services that the infant has received, or
is entitled to receive, under the laws of any state or the federal
government, except to the extent this exclusion may be prohibited by
federal law;
(B) Expenses for items or services that the infant has received, or
is contractually entitled to receive, from any health carrier, as
defined in RCW 48.43.005(18), or other insurer;
(C) Expenses for which the infant has received reimbursement, or
for which the infant is entitled to receive reimbursement, under the
laws of any state or the federal government, except to the extent this
exclusion may be prohibited by federal law; and
(D) Expenses for which the infant has received reimbursement, or
for which the infant is contractually entitled to receive
reimbursement, under the provisions of a health or sickness insurance
policy or other private insurance program.
(iii)(A) Periodic payments of an award to the parents or legal
guardians of the infant found to have sustained a birth-related injury.
The award may not exceed one hundred thousand dollars. At the
discretion of the board, the award may be made in a lump sum.
(B) Death benefit for the infant if the infant has died as a result
of the birth-related injury in an amount of ten thousand dollars.
(iv) Reasonable expenses incurred in connection with the filing of
a claim under this chapter, including reasonable attorneys' fees, which
shall be subject to the approval and award of the board. In
determining an award for attorneys' fees, the board shall consider the
following factors:
(A) The time and labor required, the novelty and difficulty of the
questions involved, and the skill requisite to perform the legal
services properly;
(B) The fee customarily charged in the locality for similar legal
services;
(C) The time limitations imposed by the claimant or the
circumstances;
(D) The nature and length of the professional relationship with the
claimant;
(E) The experience, reputation, and ability of the lawyer or
lawyers performing services; and
(F) The contingency or certainty of a fee.
(b) Expenses included under (a)(i) of this section shall be limited
to reasonable fees paid by private health benefit plans, as defined in
RCW 48.43.005(19), in the same community for similar treatment of
injured persons.
(c) If the board makes a final determination that a claim is
compensable under this chapter, and the claimant accepts an award under
this section, the claimant shall not be liable for any expenses,
including attorneys' fees, incurred in connection with the filing of a
claim under this chapter, other than those expenses awarded under this
section.
(2) The award shall require that the association immediately pay
those expenses previously incurred and pay future expenses as they are
incurred.
(3) A copy of the award shall be sent immediately by registered or
certified mail to each person or entity served with a copy of the
petition under section 5 of this act.
NEW SECTION. Sec. 11
(2) In case of an appeal from an award of the board, the appeal
operates as a suspension of the award of compensation, and the
association is not required to make payment of the award involved in
the appeal until the questions at issue in the appeal have been fully
determined.
NEW SECTION. Sec. 12
(2) A party may petition the superior court for enforcement of a
final award by the board.
NEW SECTION. Sec. 13
NEW SECTION. Sec. 14
(2) The association established in section 18 of this act shall
administer the assessments and appropriations dedicated to the plan, in
accordance with the following requirements:
(a) By July 1, 2006, the directors of the association shall submit
to the office of the insurance commissioner for review a plan of
operation that provides for the efficient administration of the plan
and for prompt processing of claims against and awards made on behalf
of the plan. The plan of operation must include provision for:
(i) Establishment of necessary facilities;
(ii) Management of the funds collected on behalf of the plan;
(iii) Processing of claims against the plan;
(iv) Assessment of the persons and entities listed in sections 15
and 16 of this act to pay awards and expenses. Assessments shall be on
an actuarially sound basis subject to the limits set forth in sections
15 and 16 of this act; and
(v) Any other matters necessary for the efficient operation of the
birth-related injury compensation plan.
(b) Amendments to the plan of operation may be made by the
directors of the plan, subject to the approval of the office of the
insurance commissioner.
(3) The funds collected by the association and any income therefrom
shall be disbursed only for the payment of awards under this chapter
and for the payment of the reasonable expenses of administering the
plan.
NEW SECTION. Sec. 15
(1) Beginning January 1, 2006, and each January 1st thereafter,
each hospital licensed under chapter 70.41 RCW and each childbirth
center licensed under chapter 18.46 RCW shall pay an initial assessment
of fifty dollars per infant delivered in the hospital during the prior
calendar year, as reported to the department of health. Upon
demonstration of financial need by a hospital, the association may
provide for installment payments of assessments.
(2) Beginning January 1, 2006, and each January 1st thereafter, all
physicians licensed under chapter 18.71 RCW, all osteopathic physicians
licensed under chapter 18.57 RCW, and all advanced registered nurse
practitioners licensed under chapter 18.79 RCW, shall be assessed an
assessment of five hundred dollars, which must be paid by March 1,
2006, and each March 1st thereafter. The assessment imposed under this
subsection does not apply to the following physicians or advanced
registered nurse practitioners:
(a) A resident physician, assistant resident physician, or intern
in an approved postgraduate training program, as defined by the
department of health;
(b) A retired physician who has withdrawn from the practice of
medicine but who maintains an active license. Before reentering the
practice of medicine in this state, a retired physician must notify the
department of health and pay the appropriate assessments under this
section;
(c) A physician or advanced registered nurse practitioner who is
employed full time by the United States department of veterans affairs
and whose practice is confined to United States department of veterans
affairs hospitals;
(d) A physician or advanced registered nurse practitioner who is a
member of the armed forces of the United States; or
(e) A physician or advanced registered nurse practitioner who is
employed full time by the state of Washington and whose practice is
confined to state-owned correctional institutions, or state-owned
mental health or developmental services facilities, or who is employed
full time by the department of health.
NEW SECTION. Sec. 16
(b) All annual assessments shall be made on the basis of net direct
premiums written for casualty insurance in the state during the prior
year ending December 31st, as reported to the office of the insurance
commissioner, and shall be in the proportion that the net direct
premiums written by each carrier for casualty insurance bears to the
aggregate net direct premiums for all casualty insurance written in
this state by all such entities.
(c) No casualty insurer shall be individually liable for an annual
assessment in excess of 0.25 percent of that insurer's net direct
premiums written.
(d) Casualty insurance carriers are entitled to recover their
initial and annual assessments through a surcharge on future policies,
a rate increase applicable prospectively, or a combination of the two.
(2) The association may enforce collection of assessments required
to be paid pursuant to this chapter by suit filed in superior court.
The association shall be entitled to an award of attorneys' fees,
costs, and interest upon the entry of a judgment against a physician
for failure to pay an assessment, with interest accruing until the
assessment is paid.
(3)(a) The office of the insurance commissioner shall undertake an
actuarial evaluation of the requirements of the plan based on the
plan's experience in the first year of operation and any additional
relevant information, including without limitation, the assets and
liabilities of the plan. Pursuant to the investigation, the office of
the insurance commissioner shall establish the rate of contribution of
casualty insurers for the tax year beginning January 1, 2007.
Following the initial evaluation, the office of the insurance
commissioner shall cause an actuarial evaluation to be made of the
assets and liabilities of the plan no less frequently than biennially.
Pursuant to the results of the evaluations, the office of the insurance
commissioner shall prepare a statement as to the appropriate
contribution rate applicable to casualty insurers to maintain the plan
on an actuarially sound basis.
(b) If the office of the insurance commissioner finds that the plan
cannot be maintained on an actuarially sound basis based on the
assessments in section 15 of this act and any appropriation of funds
provided by the legislature, the commissioner shall increase the
assessments specified in this section on a proportional basis as
needed. At no time shall the rate be greater than 0.25 percent of net
direct premiums written.
NEW SECTION. Sec. 17
(2) If any person is precluded from asserting a claim against the
association because of subsection (1) of this section, the plan shall
not constitute the exclusive remedy for such person, his or her
personal representative, parents, dependents, or next of kin.
NEW SECTION. Sec. 18
(b) The directors shall be appointed for staggered terms of three
years or until their successors are appointed and have qualified.
(c) The directors shall be appointed by the governor as follows:
(i) Two citizen representatives;
(ii) One representative of physicians;
(iii) One representative of advanced registered nurse
practitioners;
(iv) One representative of hospitals;
(v) One representative of childbirth centers; and
(vi) One representative of casualty insurers.
(2) The directors shall not transact any business or exercise any
power of the plan except upon the affirmative vote of four directors.
The directors shall serve without salary, but each director shall be
reimbursed for actual and necessary expenses incurred in the
performance of his or her official duties as a director of the plan.
(3) The board of directors shall:
(a) Administer the plan;
(b) Administer the funds collected on behalf of the plan;
(c) Administer the payment of claims on behalf of the plan;
(d) Direct the investment and reinvestment of any surplus funds
over losses and expenses, provided that any investment income generated
thereby remains credited to the plan;
(e) Reinsure the risks of the plan in whole or in part;
(f) Sue and be sued, and appear and defend, in all actions and
proceedings in its name to the same extent as a natural person;
(g) Have and exercise all powers necessary or convenient to effect
any or all of the purposes for which the plan is created;
(h) Enter into such contracts as are necessary or proper to
administer the plan;
(i) Employ or retain such persons as are necessary to perform the
administrative and financial transactions and responsibilities of the
plan and to perform other necessary and proper functions not prohibited
by law;
(j) Take such legal action as may be necessary to avoid payment of
improper claims; and
(k) Indemnify any employee, agent, member of the board of directors
or alternate thereof, or person acting on behalf of the plan in an
official capacity, for expenses, including attorneys' fees, judgments,
fines, and amounts paid in settlement actually and reasonably incurred
in connection with any action, suit, or proceeding, including any
appeal thereof, arising out of such person's actions undertaken in good
faith on behalf of the plan.
(4) All books, records, and audits of the plan are open for
reasonable inspection to the general public, except that a claim file
in the possession of the association or its representative is
confidential and exempt from chapter 42.17 RCW until termination of
litigation or settlement of the claim. Medical records and other
portions of the claim file may remain confidential and exempt as
otherwise provided by law. Any book, record, document, audit, or asset
acquired by, prepared for, or paid for by the association is subject to
the authority of the board of directors, which is responsible therefor.
(5) Annually, the association shall furnish audited financial
reports to any claimant who has been awarded compensation under section
10 of this act upon request, and to the office of the insurance
commissioner. The reports must be prepared in accordance with accepted
accounting procedures and must include such information as may be
required by the office of the insurance commissioner. At any time
determined to be necessary, the office of the insurance commissioner
may conduct an audit of the plan.
(6) The state of Washington and the directors of the association
are not subject to any liability with respect to their good faith
administration of the plan, except the association may be sued to
enforce payment of compensation awarded under section 10 of this act.
NEW SECTION. Sec. 19
NEW SECTION. Sec. 20 A new section is added to chapter 18.130
RCW to read as follows:
Upon receipt of a copy of a petition filed under section 5 of this
act, the applicable disciplinary authority shall review the information
in the petition and determine whether the claim involved conduct by a
physician licensed under chapter 18.71 RCW, an osteopathic physician
licensed under chapter 18.57 RCW, or an advanced registered nurse
practitioner licensed under chapter 18.79 RCW, that is subject to
disciplinary action under this chapter.
NEW SECTION. Sec. 21 A new section is added to chapter 70.41 RCW
to read as follows:
Upon receipt of a copy of a petition filed under section 5 of this
act, the department shall investigate the claim presented in the
petition, and if it determines that the injury resulted from, or was
aggravated by, a violation of licensing statutes or rules on the part
of a hospital, it shall take appropriate action consistent with its
enforcement authority.
NEW SECTION. Sec. 22 A new section is added to chapter 18.46 RCW
to read as follows:
Upon receipt of a copy of a petition filed under section 5 of this
act, the department shall investigate the claim presented in the
petition, and if it determines that the injury resulted from, or was
aggravated by, a violation of licensing statutes or rules on the part
of a childbirth center, it shall take appropriate action consistent
with its enforcement authority.
NEW SECTION. Sec. 23 A new section is added to chapter 51.52 RCW
to read as follows:
The board may adopt rules to implement sections 1 through 19 of
this act to promote the efficient administration of, and to minimize
costs associated with, the resolution of claims filed under this
chapter.
NEW SECTION. Sec. 24 A new section is added to chapter 7.70 RCW
to read as follows:
Sections 1 through 19 of this act constitute the exclusive remedy
for claims for damages for birth-related injury, as defined in section
2 of this act, that occur on or after January 1, 2007.
NEW SECTION. Sec. 25 Captions used in this act are not any part
of the law.
NEW SECTION. Sec. 26 Sections 1 through 19 of this act
constitute a new chapter in Title