AUSTIN – Texas legislators heard testimony Wednesday on HB 4806, a bill seeking to curb inflated medical damages in civil actions.
Appearing before the Judiciary & Civil Jurisprudence Committee, Rep. Greg Bonnen, the bill’s sponsor, told his colleagues that there is a “tendency” from some attorneys to drive up costs in civil suits by overutilization and overbilling.
“(HB 4806) will ensure injured parties can be made whole, while also preventing some attorneys and their collaborative medical providers from exploiting the legal system, unfortunately, for gain,” Bonnen said, adding that the bill puts no limit on damages and ensures juries have clear instructions.
Speaking against the bill, Adam Loewy, a personal injury attorney, told the committee “more lawsuits” will be filed in Texas if the bill passes.
Loewy called HB 4806 a “medical cap,” saying that after lawyers send pre-suit demands a lot of the cases get settled for reasonable amounts.
“Lawsuits happen because you cannot settle these cases once the insurance companies are given justification to lowball the medical,” Loewy said. “That is the biggest problem broadly speaking with this bill.”
Also speaking against the bill was Doug Heller, director for insurance for the Consumer Federation of America.
Heller said CFA has studied the insurance cycle for decades and was adamant that “tort reform always puts more money in the pockets of insurance companies, but it never takes less out of ours.”
“There’s a better path toward reform, which is about holding the insurance companies accountable, rather than taking away the rights of Texas consumers,” he added.
A similar bill to HB 4806, Senate Bill 30, was introduced in March and has made its way to the House.
Lt. Gov. Dan Patrick praised the passage of SB 30, saying that “nuclear verdicts have major financial consequences and can leave individuals and businesses in ruins.”
"These monstrous verdicts drive up insurance costs for Texans and make it harder for businesses to effectively operate in Texas,” he said.
In April, the Lone Star Economic Alliance launched a six-figure multimedia advertising campaign in support of SB 30, 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.
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.