Weekly Legislative Update
March 3, 2008

Urgent Call to Action!

ESHB 1873, an unwarranted and costly expansion of liability law, is now in Senate Rules committee, the last stop before a floor vote.

Call 1.800.562.6000 or e-mail your state senator TODAY and voice your concerns about ESHB 1873.

Even New Jersey Gov. Jon Corzine, one of the most liberal governors, vetoed similar legislation in January 2008, citing the negative impact to local government budgets and the chill it would put on attracting new business to the state.

About ESHB 1873 (see attached talking points for more information):

Today (March 3) the Senate Ways and Means committee passed House Bill 1873 to the Rules committee.  We are encouraged by the amendment offered by long-time LRC ally Sen. Dale Brandland (R-Whatcom County) and adopted by the committee, that appears to eliminate joint and several liability for wrongful death defendants.  While this is a step in the right direction, the bill is still a massive expansion of liability which will cost taxpayers millions of dollars.

HB 1873 makes changes to the state’s wrongful death statutes that could lead to an 80 percent increase in the number of claims against the state, costing taxpayers millions of dollars per year, according to a just-released analysis from Milliman, Inc., a nationally recognized actuarial firm.

Milliman’s report estimates the 80 percent increase in frequency of wrongful death cases against the state government will cost nearly $19 million per biennium.

State and local officials have testified that HB 1873 will have a dramatic impact on the severity, or payout amounts, of the cases against governments. The Attorney General’s office estimates HB 1873 will add an additional $1.25 million per case. The Association of Washington Cities Risk Management Services Agency estimates HB 1873 will add an additional $2 million per case. 

The Washington State Medical Association sent a letter to Gov. Christine Gregoire expressing concerns that HB 1873 will undermine the accord reached two years ago on med-mal liability. According to WSMA’s letter, HB 1873 will expose physicians to increased liability, which “opens old wounds and goes back on the compromise we reached in 2006.” WSMA President Brian Wicks, MD, says HB 1873 “blows a hole in the 2006 accord.” (Read Dr. Wicks’ Tacoma News Tribune comments.)

The Milliman report, commissioned by the Liability Reform Coalition, addresses the effect of HB 1873 on the number, or frequency, of cases that will likely result against state government due to changes in the law.

For more information on the cost to state government if HB 1873 were passed, please see the attached executive summary from Milliman, Inc.  The complete report will be available Tuesday, March 4.