SENATE COMMITTEE ON COMMERCE
May 19, 2005 Hearing Room C
3:10 P.M. Tapes 64 - 66
MEMBERS PRESENT: Sen. Floyd Prozanski, Chair
Sen. Roger Beyer, Vice-Chair
Sen. Charlie Ringo
Sen. Doug Whitsett
MEMBER EXCUSED: Sen. Ginny Burdick
VISITING MEMBER: Sen. Alan Bates
STAFF PRESENT: Anna Braun, Committee Administrator
Karen Scoffield, Committee Assistant
MEASURES/ISSUES HEARD:
HB 2740A – Work Session
HB 2718 – Work Session
HB 2294 – Work Session
HB 2126 – Work Session
HB 2125 – Work Session
SB 446 – Public Hearing
These minutes are in compliance with Senate and House Rules. Only text enclosed in quotation marks reports a speaker’s exact words. For complete contents, please refer to the tapes.
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TAPE/# |
Speaker |
Comments |
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TAPE 64, A |
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005 |
Chair Prozanski |
Calls the meeting to order at 3:15 p.m. Opens a work session on HB 2740A. |
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HB 2740A – WORK SESSION |
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012 |
Anna Braun |
Committee Administrator. Provides an overview of HB 2740A. |
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017 |
Sen. Beyer |
MOTION: Moves HB 2740A to the floor with a DO PASS recommendation. |
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|
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VOTE: 3-0-2 EXCUSED: 2 - Burdick, Whitsett |
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|
Chair Prozanski |
Hearing no objection, declares the motion CARRIED. SEN. PROZANSKI will lead discussion on the floor. |
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021 |
Chair Prozanski |
Closes work session on HB 2740A and opens work session on HB 2718. |
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HB 2718 – WORK SESSION |
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023 |
Anna Braun |
Committee Administrator. Provides an overview of HB 2718. |
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025 |
Sen. Beyer |
MOTION: Moves HB 2718 to the floor with a DO PASS recommendation. |
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|
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VOTE: 4-0-1 EXCUSED: 1 - Beyer |
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|
Chair Prozanski |
Hearing no objection, declares the motion CARRIED. SEN. BEYER will lead discussion on the floor. |
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030 |
Chair Prozanski |
Closes work session on HB 2718 and opens work session on HB 2294. |
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HB 2294 – WORK SESSION |
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032 |
Anna Braun |
Committee Administrator. Provides an overview of HB 2294. |
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034 |
Sen. Beyer |
MOTION: Moves HB 2294 to the floor with a DO PASS recommendation. |
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|
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VOTE: 4-0-1 EXCUSED: 1 - Burdick |
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Chair Prozanski |
Hearing no objection, declares the motion CARRIED. SEN. RINGO will lead discussion on the floor. |
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039 |
Chair Prozanski |
Closes work session on HB 2294 and opens work session on HB 2126. |
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HB 2126 – WORK SESSION |
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042 |
Anna Braun |
Committee Administrator. Provides an overview of HB 2126. |
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045 |
Chair Prozanski |
Comments on the public hearings for HB 2126. |
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048 |
Sen. Beyer |
MOTION: Moves HB 2126 to the floor with a DO PASS recommendation. |
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|
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VOTE: 4-0-1 EXCUSED: 1 - Burdick |
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Chair Prozanski |
Hearing no objection, declares the motion CARRIED. SEN. WHITSETT will lead discussion on the floor. |
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053 |
Chair Prozanski |
Closes work session on HB 2126 and opens work session on HB 2125. |
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HB 2125 – WORK SESSION |
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055 |
Anna Braun |
Committee Administrator. Provides an overview of HB 2125. |
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057 |
Sen. Beyer |
MOTION: Moves HB 2125 to the floor with a DO PASS recommendation. |
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|
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VOTE: 4-0-1 EXCUSED: 1 - Burdick |
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Chair Prozanski |
Hearing no objection, declares the motion CARRIED. SEN. BURDICK will lead discussion on the floor. |
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060 |
Chair Prozanski |
Closes work session on HB 2125 and opens public hearing on SB 446. |
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SB 446 – PUBLIC HEARING |
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062 |
Anna Braun |
Committee Administrator. Provides an overview of SB 446. Introduces the -2 amendments (EXHIBIT A), -3 amendments (EXHIBIT B), -4 amendments (EXHIBIT C), -5 amendments (EXHIBIT D), -6 amendments (EXHIBIT E) and -7 amendments (EXHIBIT F) to SB 446. |
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080 |
Chair Prozanski |
Comments on testimony for SB 446. |
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090 |
Peter Bernardo |
Oregon Medical Association (OMA). General Surgeon, Salem, Oregon. Testifies in support of SB 446. Discusses the background of medical malpractice liability insurance in Oregon. |
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150 |
Bernardo |
Continues testimony. |
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225 |
Bernardo |
Discusses personal experience regarding the cost of medical malpractice insurance. |
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245 |
Monica Wehby |
OMA. Pediatric Neurosurgeon, Portland, Oregon. Testifies in support of SB 446. Relates anecdote regarding a child needing medical attention by a pediatric neurosurgeon. Discusses the high costs of medical malpractice liability insurance in Oregon. |
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340 |
Wehby |
Continues testimony. Provides statistics on neurosurgeons in Oregon. |
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TAPE 65, A |
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005 |
John Moorhead |
Immediate Past President, OMA. Emergency Physician, Oregon Health and Sciences University (OHSU). Discusses and submits written testimony in support of SB 446 (EXHIBIT G). |
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070 |
Sen. Bates |
Thanks the witnesses and commends them for their efforts. |
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078 |
Sen. Ringo |
Comments that it is an important goal to make physician’s premiums more affordable, but it cannot be the only goal as they need to respect access to the justice system and work toward patient safety. Discusses efforts of the work group for SB 446. |
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110 |
Bernardo |
Responds that the Oregon Medical Association worked in 2003 to pass a patient safety act. States that Oregon is one of two states in the United States that does not have caps on damages for tort claims. Discusses concern of lawsuits. |
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130 |
Sen. Ringo |
Comments that he understands the witnesses’ position. |
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135 |
Chair Prozanski |
Discusses knowledge of other states in a liability and health crisis. Asks Bernardo and Wehby regarding their insurance coverage. |
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180 |
Bernardo |
States that most physicians do not have excess coverage. States that his policy covers up to $1 million per occurrence, $3 million per year. |
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190 |
Wehby |
States that she originally had up to $5 million per occurrence, $5 million per year, but now has up to $1 million per occurrence, $3 million per year, and cannot get any more coverage. |
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215 |
Bernardo |
Interjects that their concerns are regarding the cost of premiums and the potential of exceeding their amount of coverage. |
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233 |
Moorhead |
Comments that we need to be careful when looking at other states. |
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253 |
Bernardo |
Comments in response to Moorhead’s comments. |
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256 |
Wehby |
Discusses tort reform and pre-litigation screening. |
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272 |
Chair Prozanski |
Remarks that a friend of his, who is a neurosurgeon, left Oregon and has now come back, but he does not know why. |
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278 |
Bernardo |
Comments that many neurosurgeons in Oregon have taken intracranial work out of their scope of practice to limit their risk. |
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280 |
Wehby |
Remarks that insurance companies will typically lower the rates by 30% if neurosurgeons drop their intracranial work. |
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284 |
Sen. Bates |
Comments on the shortage of physicians in Oregon. Comments that Oregon is also low on Medicare and Medicaid reimbursements in addition to high costs of medical malpractice insurance. Discusses the shortage of neurosurgeons in Medford, Oregon. |
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323 |
Chair Prozanski |
Comments on reimbursement rates for Medicare and Medicaid. |
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355 |
Bill Gallagher |
Orthopedic Surgeon, Salem, Oregon. President and Chairman, Northwest Physicians Mutual Insurance Company. Testifies regarding SB 446. |
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TAPE 64, B |
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022 |
Scott Gallant |
Director, Government Affairs, OMA. Discusses and submits an informational packet in support of SB 446 (EXHIBIT H). |
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115 |
Gallant |
Concludes testimony. |
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130 |
Mike Crew |
Attorney, Oregon Medical Association. Discusses and submits an informational packet in support of SB 446 (EXHIBIT I). Discusses the -4 and -6 amendments to SB 446. |
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145 |
Chair Prozanski |
Asks Crew for clarification regarding the documents he submitted. |
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151 |
Crew |
Responds. |
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154 |
Crew |
Continues testimony. Discusses the -4 amendments to SB 446. |
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265 |
Crew |
Discusses the -6 amendments to SB 446. |
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335 |
Crew |
Concludes testimony. |
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385 |
Chair Prozanski |
Asks Gallagher about the procedures of insurance payouts. |
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405 |
Gallagher |
Discusses procedures. Comments that all claims are looked at by the claims committee. Comments that they also look at claim history. |
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TAPE 65, B |
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018 |
Chair Prozanski |
Asks for Gallant to comment on his knowledge of claims. |
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023 |
Gallagher |
Discusses claims against doctors. |
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030 |
Gallant |
Responds to Chair Prozanski. Discusses the lawsuits and claims against doctors. |
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085 |
Crew |
Interjects that the -6 amendments exclude cases involving gross negligence or intentional conduct by a physician. |
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090 |
Chair Prozanski |
Asks Crew about Maine’s system. |
|
095 |
Crew |
Responds. |
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099 |
Chair Prozanski |
Asks for clarification on Moorhead’s comments regarding trials in Maine. |
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103 |
Crew |
Defers to Gallant. |
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105 |
Gallant |
Comments that Moorhead was speaking of two cases where the jury overturned the recommendation of the panel. |
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110 |
Gallagher |
Provides statistics regarding Maine. |
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117 |
Crew |
States that in 21 cases of unanimous panel verdicts in Maine, 2 were won by the plaintiff and 19 by the defense. Comments that only unanimous decisions are admissible in Maine. |
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122 |
Sen. Bates |
Comments on Maine’s procedures. |
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137 |
Crew |
Remarks that the -6 amendments state specifically what the court can tell the jury. |
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150 |
Mic Alexander |
Oregon Trial Lawyers Association. States that he participated in the work group on SB 446. States desire for further amendments to SB 446. Remarks that he does not see the high medical malpractice liability insurance rates as a problem of the tort system, but rather the insurance system. |
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250 |
Alexander |
Continues testimony. Discusses potential effects of a statewide professional liability fund in Oregon. |
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300 |
Whitsett |
Asks Alexander’s opinion of insurance rates. |
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303 |
Alexander |
Responds. |
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317 |
Whitsett |
Comments on the individuals affected by the high medical malpractice liability insurance rates. |
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340 |
Alexander |
Responds. |
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365 |
Sen. Beyer |
States that Alexander misspoke when he said that the social insurance program is funded by the taxpayers. States that the program is funded by employers. |
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373 |
Alexander |
States that he considers employers as taxpayers. Comments that he did not know the details of how the program works. |
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380 |
Alexander |
Continues testimony. |
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TAPE 66, A |
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025 |
Alexander |
Concludes testimony. |
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035 |
Sen. Whitsett |
Comments that he thinks that the liability cap is the problem, not the insurance rates. |
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040 |
Sen. Bates |
Thanks Alexander for his testimony and his efforts in the work group for SB 446. |
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047 |
Alexander |
Comments on the work group for SB 446. |
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050 |
Sen. Bates |
Asks Chair Prozanski to look at the rates of medical malpractice liability insurance and ask the insurance industry for their comments. |
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056 |
Chair Prozanski |
Discusses plans with SB 446. Comments on the history of caps in Oregon. |
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080 |
Sen. Beyer |
Comments that the state was in crisis until 1988, and fell back into crisis after the caps were removed. |
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084 |
Chair Prozanski |
States that there are other economic cycles involved in what Sen. Beyer is speaking of. |
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095 |
Bruce Miller |
Assistant Staff Counsel, Office of the State Court Administrator. Testifies regarding SB 446. Discusses Maine’s system. |
|
135 |
Chair Prozanski |
Asks if Miller has looked at the fiscal impact of SB 446. |
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138 |
Miller |
States he does not have a complete idea of the fiscal impact because he has not reviewed the amendments. |
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145 |
Sen. Beyer |
Comments on Oregon’s Hearing Officer Panel. |
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150 |
Chair Prozanski |
Closes the public hearing on SB 446. Adjourns the meeting at 5:15 p.m. |
EXHIBIT SUMMARY