Hospitals-liability coverage.

WORKING DRAFT
2005
STATE OF WYOMING
05LSO-0272.E1

HOUSE BILL
NO.
HB0233

Hospitals-liability coverage.

Sponsored by:
Representative(s) Brown, Bagby, Lubnau and Petersen and Senator(s) Barrasso and Vasey

A BILL

for

AN ACT relating to county memorial hospitals and hospital districts; providing an appropriation to conduct a study and to assist county memorial hospitals and hospital districts in joining the local government self-insurance program; specifying how the appropriation shall be used; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

(a)

There is appropriated from the budget reserve account to a separate account within the treasurer's office one million dollars ($1,000,000.00) to conduct a study and to assist county memorial hospitals and hospital districts in obtaining prior acts coverage under the local government self-insurance program.
Of this appropriation, an amount not to exceed one hundred thousand dollars ($100,000.00) shall be provided to the local government self-insurance joint powers board to contract for a feasibility study to determine the potential liability exposures and feasibility of the participation of county memorial hospitals and hospital districts in the local government self-insurance program. The balance of t
his appropriation shall be used, upon application as described in subsection (b) of this section, by the local government self-insurance joint powers board, defined in W.S. 1-42-201, to ensure that county memorial hospitals and hospital districts do not endure a lapse in coverage due to obtaining coverage under the local government self-insurance program. In using this appropriation, the local government self-insurance joint powers board may, at its discretion and on a case by case basis, elect to procure coverage from an outside insurer for prior events not covered due to the expiration of the period for making claims under the county memorial district's or hospital district's prior insurance policy, or may elect to extend coverage under the local government self-insurance program to claims that occurred during the time of the lapse in coverage.

(b)

Application to obtain coverage under this section shall be submitted to the local government self insurance joint powers board with the following information:

(i)

A copy of the hospital district or county memorial hospital's current insurance policy including a statement of the current annual premium;

(ii)

A good faith estimate of the cost of tail coverage from the current insurance provider;

(iii)

A description of all outstanding claim periods for which coverage is needed.

(c)

Upon approval of coverage under the local government self-insurance program, the state treasurer shall transfer from the separate account to the account designated by the local government self-insurance program joint powers board pursuant to W.S. 1
‑
42
‑
113(a)(i), the amount necessary to procure coverage from an outside insurer for prior events not covered due to the expiration of the period for making claims under the county memorial hospital's or hospital district's prior insurance policy, or to extend coverage under the local government self-insurance program to claims that occurred during the time of the lapse in coverage, as determined by the local government self-insurance program joint powers board pursuant to subsection (a) of this section. Application for prior acts coverage under this section may only be submitted once, shall be submitted prior to a hospital district or memorial hospital's election to obtain coverage under the local government self-insurance program and shall be funded under this act in the order received by the local government self-insurance program joint powers board.

Section 2.
This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

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HB0233