Texas bill takes aim at inflated medical damages

AUSTIN – Texas’ reputation for doling out nuclear verdicts may fizzle somewhat if Senate Bill 30 is enacted – a piece of legislation aimed at letting the air out of inflated medical damages.

Sponsored by a pair of Republican state senators, SB 30 relates to the recovery of damages in civil actions.

As the legislation is barely a month old, groups such as Texas Alliance for Patient Access are currently working with legislators to ensure the bill does not unintentionally set rates for healthcare services.

“TAPA continues to monitor SB30,” said Brian G. Jackson, executive director for TAPA. “We recognize that all industries in Texas need protections from excessive and prohibitive lawsuits, similar to what presently exists for the healthcare industry. SB 30 is an answer to that need.

“Before TAPA advocates for SB30’s passage, we continue to work with the bill’s authors on language to ensure that the bill does not unintentionally set rates for healthcare services, which we are hopeful we can do.”

TAPA was formed to improve access to health care through enactment and preservation of medical lawsuit reforms.

On Monday, the Lone Star Economic Alliance, a coalition of 1,150 Texas businesses, individuals and associations, announced the launch of a six-figure multimedia advertising campaign in support of the bill. The campaign includes placing billboards in high-traffic areas and running digital ads.

LSEA asserts SB 30 seeks to stop the manipulation and wrongful inflation of medical damages by personal injury lawyers and collaborative healthcare providers.

“Texans deserve a legal system that’s fair, transparent, and focused on justice — not one that rewards manipulation and abuse,” said a LSEA spokesperson. “Senate Bill 30 will bring balance back to the courtroom, protect small businesses, and reduce inflated costs that ultimately burden all Texans.”

The group also maintains the bill takes steps to encourage doctors to treat accident victims, and help jurors make informed decisions by establishing clear standards and definitions for noneconomic damages.

“SB 30 seeks to prevent abusive lawsuit practices by many plaintiff lawyers that wrongfully inflate medical damages in personal injury lawsuits,” the LSEA said in a press release. “The bill also will bring uniformity to Texas courtrooms by defining the noneconomic damages of pain and suffering and mental anguish, assuring that harmed persons are fully compensated on a fair and reasonable basis.

“Thanks to the leadership of Lt. Governor Patrick and Senator Charles Schwertner, the Texas Senate today took a bold stand to ensure that our legal system works as it was intended: to protect genuine victims, not enrich bad actors. With SB 30, all Texans will benefit from a fairer, more transparent legal process that restores integrity and trust in our courts. 

“We applaud the full Senate for passing this critical legislation. This is a meaningful step toward real reform — and a win for every Texan.” 

Patrick also praised the passage.

“Nuclear verdicts have major financial consequences and can leave individuals and businesses in ruins,” he said in a statement. “These monstrous verdicts drive up insurance costs for Texans and make it harder for businesses to effectively operate in Texas. I thank Sen. Schwertner for his leadership on this critical issue.”

TAPA was formed in 2001 with a singular goal of improving access to health care through enactment and preservation of meaningful medical lawsuit reforms.

Part of SB30 was in response to a 2023 Texas Supreme Court decision wiping out a $15 million award in a wrongful death lawsuit involving an 18-wheeler collision that cost four people their lives.

A jury had awarded $16.8 million to the plaintiffs, $15 million of which was for noneconomic damages.

Justices held the award was excessive, opining that nothing in the record demonstrated a rational connection between the injuries suffered and the amount awarded.

The case drew the attention of numerous notable plaintiff’s attorneys and groups, including the Texas Trial Lawyers Association.

TTLA argued in their amicus curiae brief that the high court should guard the balance among juries and appellate courts, and that economic-to-noneconomic ratios are poor measuring sticks for damages.

The U.S. Chamber of Commerce also submitted a brief, arguing that the appellate court that affirmed the award erred by refusing to engage in a traditional comparative analysis.

“In abjuring its responsibility to conduct meaningful review of the damages awarded in this case, the court transgressed the well-settled, common-sense principles of noneconomic damages awards that help ensure a predictable, consistent judicial system — which, in turn, is essential to the rule of law and the economic flourishing that it fosters,” the brief states.

SB 30 is sponsored by Senators Schwertner and Brent Hagenbuch.

The bill was introduced on March 13 and placed on the intent calendar on April 15.

Source: https://setexasrecord.com/stories/670916021-texas-bill-takes-aim-at-inflated-medical-damages