|SB 0377||Creates a malpractice settlement tax|
|LR Number:||0818S.02I||Fiscal Note:||0818-02|
|Committee:||Ways and Means|
|Last Action:||02/11/03 - Hearing Conducted S Ways and Means Committee||Journal page:|
|Effective Date:||August 28, 2003|
SB 377 - This act levies a tax of two percent on settlements and judicial awards for health care professional liability. The tax covers all settlements, whether they are the result of arbitration, mediation, judicial action, or mutual consent.
The Department of Revenue will be responsible for the collection of the tax. The monies from the tax will be dedicated to an effort to reduce the incidence of health care mishaps and errors that lead to such settlements or judgements.
In the first year, the money is to be used by the Board of Healing Arts for the above stated purposes. In subsequent years, the money may be appropriated to the Board of Healing Arts, the Department of Health and Senior Services, or the Department of Insurance, for the same purposes.
Failure to report a settlement will result in a penalty of $250 or 5% of the settlement, whichever is greater. Failure to report shall also be sent to the respective professional association of the parties involved, including that of the parties' attorneys.
In the case of a judicial award, the court shall order the
tax withheld from the award prior to disbursement of the funds.