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2004 Budget Session
HB 206 proposed to regulate health care malpractice insurance as a non-competitive insurance market in Wyoming.
The Wyoming Insurance Commissioner has authority to regulate insurance rates for non-competitive insurance markets, as defined in state statute. HB 206 would have added health care malpractice insurance to the defined list of non-competitive insurance markets.
The Commissioner would determine rates for medical malpractice insurance in the state based on loss and expense experience within Wyoming. If there were not sufficient experience in Wyoming to allow for a sound determination, then the Commissioner would evaluate experience in Wyoming and as few selected other states with reasonable similar characteristics as necessary to achieve an actuarially sound determination.
As with a number of other bills before the 2004 Legislature, HB 206 was an attempt to deal with the problems caused by high medical malpractice insurance rates in Wyoming.
Supporters of HB 206 applauded this bill as one that tackled the problem of high medical malpractice insurance rates directly. They noted that most of the other proposals simultaneously before the Legislature approached the insurance problem sideways, without a clear understanding of how, or even if, the proposed solution would actually improve the problem of high insurance rates. HB 206 recognized that medical malpractice insurance rates need to be controlled, and proposed a practical way to do it, according to supporters.
Opponents argued that the competitive market should be allowed to work, and that medical malpractice insurance should not be considered a non-competitive market. Some opponents preferred to try to limit insurance rate increases indirectly, by capping the amount of damages an insurance company would have to pay for medical malpractice or by limiting citizens' rights to bring medical malpractice lawsuits.
HB 206 passed the House vote for introduction, 57-2 (1 excused). Representatives Pete Jorgensen (D-H16, Jackson) and Jane Wostenberg (R-H27, Worland) cast the only two votes against HB 206.
The House Judiciary Committee subsequently defeated HB 206 without a recorded vote.