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2004 Budget Session
         HB 204 was one of several legislative proposals in 2004 that attempted to deal with the problem of high medical malpractice insurance premiums for doctors and physician recruitment and retention problems experienced by some rural Wyoming communities.          HB 204 would have established a special fund called the non-economic medical damages payments account. When a final judgment or settlement against a doctor in a medical malpractice case was more than $350,000 for non-economic damages, the amount above $350,000 would be paid by the state of Wyoming from this account.          Any physician who had been licensed and practicing in Wyoming for at least one year and who agreed to the provisions of the program would be eligible for this service. Medical students who took advantage of tuition payment or loan repayment programs offered by the state would be eligible for this service as soon as they completed medical training and were licensed to practice in Wyoming.          Participating physicians would have to agree to practice in Wyoming for at least five years, and to provide medical care for any Wyoming resident qualified under the Medicaid or KidCare (Wyoming's uninsured child health insurance program) programs who seeks medical care which the physician is qualified to provide.          To pay for this service, HB 204 would have transferred $5 million from the budget reserve account to the non-economic medical damages payments account.          Supporters of HB 204 believed that the reason medical malpractice insurance rates have risen so high in recent years is because of high settlements for non-economic damages in medical malpractice lawsuits. Since the Wyoming Constitution prohibits the Legislature from enacting laws that would limit the amount of damages to be recovered by citizens in civil actions, HB 204 was viewed as a way to protect insurance companies from having to pay large settlements for non-economic damages without having to amend the Constitution. Thus protected, perhaps the insurance companies would reduce malpractice insurance rates for doctors in Wyoming, or at least not raise them so much.          Opponents of HB 204 noted that, in the 12 years from 1989 through 2001 (the most recent year for which data is available), a grand total of 31 medical malpractice lawsuits were filed in Wyoming, only five cases were won by patients, and none of the settlements were over a million dollars. Opponents maintained that Wyoming juries do not award large settlements, and that high medical malpractice insurance rates are not the result of excessive settlements. Some opponents balked at the idea of giving this assistance to insurance companies, and did not believe it would alleviate the problem of high insurance rates.          The House amended HB 204 to limit the state's payment responsibility to settlements or judgements of more than $350,000 but only up to $650,000 per claim. Responsibility for payment of any amount above $650,000 would have reverted back to the physician.          Other amendments reduced the required commitment by participating doctors to practice in Wyoming from five years to four years, but required them to agree to provide medical care for the period of the contract in underserved areas of the state.          The state would determine which areas of the state are underserved and which medical specialties are most needed in underserved areas. Highest priority would be given to areas are fewest doctors, fewest specialty practices available, and highest numbers of people enrolled in the Medicare and KidCare programs.          When determining which doctors to enter into contracts with, the state would consider the highest priority need areas and the amount of money available in the noneconomic medical damages payments account.          Instead of requiring doctors to have practiced in Wyoming for a year, the House amended the bill to permit contracts with doctors who practice at least 70% of their time in Wyoming, or to those who practice only in Wyoming on a part-time basis.          The House passed HB 204 with these amendments, 37-20 (1 excused, 2 conflict-of-interest).          The Senate Judiciary Committee defeated HB 204 without a recorded vote, with the understanding that the topic would receive interim study in the coming year.          The votes listed below are the House third reading (final passage) votes.          A YES vote means the Representative supported creating a fund to pay for settlements or judgements against physicians in medical malpractice cases that were above $350,000 and up to $650,000.          A NO vote means the Representative did not support creating such a fund.
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