Kentucky has struggled for many years with its legal liability climate, landing in the bottom ten states in the nation. This impacts the state’s health care costs and economic growth.
On Thursday, Representative Josh Bray and Senator Ralph Alvarado each introduced legislation that would help reform Kentucky’s unfriendly climate. House Bill 455 and Senate Bill 142 propose a constitutional amendment to allow the state legislature to set caps on noneconomic damages from lawsuits.
Neither bill affects a person’s right to sue for negligence or be fully compensated for injuries.
A 2021 analysis from the American Medical Association shows Kentucky leads the nation in increases in medical liability plan costs. The report noted Kentucky has had two years of widespread, year-over-year increases in medical liability insurance premiums. That means higher costs for health care for every Kentuckian.
Data from the Institute for Legal Reform also shows 89% of company executives and attorneys surveyed say a state’s legal environment impacts important decisions about where to locate or conduct business.
Senator Alvarado filed the legislation during past sessions of the General Assembly, but this will be the first time in several years such a bill is considered by the House of Representatives.
Stay tuned to The Bottom Line for more updates on the legislation.