FRANKFORT, KY – (February 3, 2022) Kentucky lags in the bottom ten states in terms of liability climate, which negatively impacts economic growth. Two state legislators are seeking to change that and improve the state’s standing to support economic and health care competitiveness.
Representative Josh Bray and Senator Ralph Alvarado have each introduced legislation that would help reform Kentucky’s unfriendly liability climate. House Bill 455 and Senate Bill 142 propose a constitutional amendment to allow the state legislature to set reasonable limits, like other states have done, 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.
In addition to the stress on the medical community from ballooning health care costs, the lack of action on liability reform in Kentucky creates a detriment to economic development efforts. The Institute for Legal Reform conducted a survey of company executives and attorneys showing 89% 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.
About the Partnership for Commonsense Justice: PCJ is a coalition of job creators, health care providers, small business owners and taxpayers concerned about Kentucky’s liability climate.