A big victory in the House for the nursing home industry, which succeeds in keeping nursing homes from provisions of the insurance reform bill. Bill sponsor Richard Byrd of Kirkwood argues unsuccessfully during floor debate that nursing homes should be required to have at least $500,000 in medical malpractice insurance. Byrd says too often nursing homes set up shell corporations to hide their assets, preventing injured parties from collecting damages. Byrd fails to keep the provision in the bill. Some legislators say the requirement is too high, that rural nursing homes wouldn’t be able to afford it. Byrd counters that the nursing homes wanted the protections provided under litigation reform, then wanted out of the requirements of insurance reform; litigation reform’s companion bill.
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