A new bill in the Texas House of Representatives is sparking controversy by proposing significant changes to personal injury law that critics argue would favor insurance companies and large corporations at the expense of everyday Texans who get injured or lose loved ones due to negligence.
Texas House Bill 4806, introduced by Rep. Greg Bonnen (R-Friendswood), seeks to significantly alter how personal injury claims are handled in the state. The bill, if passed, would implement substantial changes to how damages are calculated, what evidence can be presented in court, and how medical expenses are reimbursed in personal injury cases.
The 24-page proposed legislation has sparked intense debate, with strong opinions on both sides. Proponents argue it will prevent excessive litigation and reduce insurance costs, while opponents claim it will limit personal injury victims’ ability to recover fair compensation and reduce corporate accountability. Critics have also labeled this bill as part of a broader effort to curb so-called ‘nuclear verdicts’—jury awards that result in exceptionally high damages against defendants.
The personal injury attorneys at Varghese Summersett explain the key provisions of this bill, offer examples of how it harms injury victims, and outline what Texans can do to fight against this legislation.
Key Provisions of House Bill 4806
1. Restrictions on Medical Expense Recovery
One of the most controversial aspects of HB 4806 is its impact on how medical expenses are calculated in personal injury claims. Under current Texas law, plaintiffs can seek recovery for medical expenses that have been billed, even if they have received reductions or adjustments through insurance or other agreements.
HB 4806 proposes that injury victims should only be able to recover the amount actually paid, rather than the full amount billed by healthcare providers. This change would dramatically reduce the amount plaintiffs can claim in damages, ultimately benefiting insurers and large corporations at the expense of injured Texans. Additionally, it would limit recovery for medical expenses incurred under Letters of Protection (LOPs), which many uninsured or underinsured victims rely on for medical care.
Further, HB 4806 ties medical expense recovery to a state database, limiting reimbursement to 150% of the median amount paid by non-government third-party payers. This means that individuals who receive treatment at hospitals with higher costs or who lack insurance may face significant financial hardship due to reimbursement limits.
Additionally, failure to use available health insurance could be considered a failure to mitigate damages, meaning victims could be penalized for not using insurance, even if they preferred or were advised to seek care elsewhere.
HB 4806 also eliminates the controverting affidavit, making it easier for insurance companies to dispute medical costs. Instead of requiring a formal affidavit to challenge medical expenses, defendants can now simply file a notice of intent to contest medical charges, making it harder for plaintiffs to prove their damages.
2. Caps on Non-Economic Damages
Texas currently does not cap non-economic damages for most personal injury claims, except for medical malpractice cases, where a $250,000 cap applies. HB 4806 could extend similar restrictions to general personal injury claims, significantly limiting the compensation available to victims of serious accidents. The bill seeks to introduce or expand caps on damages for pain and suffering, mental anguish, and loss of companionship, making it harder for injured individuals to receive full and fair compensation.
Additionally, the bill proposes new definitions for pain and suffering, requiring plaintiffs to meet a higher burden of proof to recover damages for emotional distress and long-term suffering. It would also redefine “mental or emotional pain or anguish as requiring proof of a “grievous and debilitating” impact on daily life, making it significantly harder for victims to recover fair compensation for psychological trauma.
Texas House Bill 4806 further requires judges to justify non-economic damage awards that exceed certain limits. If a jury awards damages above a predetermined cap, the judge must provide written justification based on past Texas case law, adding another hurdle for plaintiffs seeking fair compensation.
3. Changes to Admissible Evidence in Court
Currently, plaintiffs can present a full range of evidence to establish the severity of their injuries and the impact on their lives. HB 4806 aims to tighten these rules by limiting what types of medical and financial evidence can be introduced. This could make it more difficult for plaintiffs to prove their case, especially in complex injury claims where future medical expenses and long-term disability are factors.
The bill also limits jury-anchoring, which means attorneys would be prohibited from suggesting specific monetary amounts for damages during trial, making it more challenging for juries to assess fair compensation.
4. Proposed Changes to Liability Standards
Texas follows a modified comparative fault system, where a plaintiff can recover damages if they are 50% or less at fault for an incident. HB 4806 proposes stricter liability rules that would make it harder for injury victims to recover compensation if they are found even slightly at fault for their injuries. This could disproportionately impact victims in car accidents, workplace injuries, and product liability cases, where liability is often contested.
5. Unanimous Jury Requirement for Non-Economic Damages
HB 4806 mandates that jurors must unanimously agree on the amount of non-economic damages awarded in personal injury cases. This is a significant departure from the current rule, which allows verdicts with 10 out of 12 jurors in agreement. By requiring all 12 jurors to agree on non-economic damages, the bill makes it much harder for injured individuals to secure compensation for pain, suffering, and mental anguish.
6. Prejudgment Interest Changes
Under HB 4806, prejudgment interest will only apply to economic damages, and it will only begin accruing from the date medical expenses were actually paid, rather than from the date of injury. This change significantly limits the amount of interest an injured party can recover, further reducing overall compensation.
Who Benefits from Texas House Bill 4806?
Supporters of HB 4806 argue that it is necessary to curb what they perceive as excessive litigation and inflated personal injury settlements. They claim that allowing plaintiffs to recover billed, rather than paid, medical expenses creates an unfair financial burden on insurers and businesses, leading to higher insurance premiums for all Texans.
Additionally, proponents argue that placing reasonable limits on non-economic damages will prevent frivolous lawsuits and ensure that Texas remains a business-friendly state. They believe that excessive personal injury awards drive up healthcare costs and discourage investment in the state’s economy. Here’s who benefits from HB 4806:
- Insurance Companies: By reducing the amount they are required to pay in claims, insurance providers stand to save millions, increasing their profitability.
- Large Corporations: Businesses facing liability lawsuits, particularly in industries like construction, manufacturing, and transportation, would benefit from reduced financial exposure.
- Medical Providers with Insurance Ties: Healthcare entities aligned with insurers may also see indirect benefits, as the bill could discourage high-cost personal injury claims.
Who Opposes House Bill 4806 and Why?
House Bill 4806 faces strong opposition from several groups due to its potential to limit the rights of injury victims. PI victims are among the most affected, as the bill restricts their ability to recover fair compensation for medical expenses and non-economic damages. This shift in financial burden from negligent parties to victims could leave many without adequate support for their injuries or losses. Here’s who opposes HB 4806:
- Injury Victims: The biggest losers under HB 4806 would be individuals who suffer serious injuries due to negligence. By limiting what they can recover, the bill shifts the financial burden from negligent parties to the victims themselves.
- Personal Injury Attorneys: Lawyers who fight for injury victims argue that this bill is designed to benefit corporations and insurers at the expense of everyday Texans.
- Consumer Advocacy Groups: Organizations dedicated to protecting consumer rights believe Texas House Bill 4806 will make it harder for victims to receive fair compensation, allowing negligent parties to escape full accountability.
How HB 4806 Could Impact Injury Victims
- Example 1: Car Accident Victim
A driver is hit by a distracted truck driver and incurs $100,000 in medical expenses. Due to insurance adjustments, the actual payment is reduced to $50,000. Under HB 4806, the victim could only claim the $50,000 rather than the full $100,000, leaving them to cover the difference.
- Example 2: Workplace Injury
A construction worker falls due to unsafe working conditions and suffers permanent disability. If HB 4806 places stricter limits on non-economic damages, their pain and suffering compensation could be capped, regardless of the lifelong impact of the injury.
- Example 3: Medical Malpractice Case
A patient undergoes a surgical procedure and is left with permanent complications due to negligence. If HB 4806 expands caps on non-economic damages beyond existing medical malpractice laws, their ability to recover for pain, suffering, and loss of quality of life could be severely limited.
What Texans Can Do if They Oppose House Bill 4806
For those who believe Texas House Bill 4806 unfairly limits injury victims’ rights, there are several ways to take action:
- Contact State Legislators: Texans can call, write, or email their state representatives to express opposition to the bill and advocate for victims’ rights.
- Support Advocacy Groups: Organizations such as Texas Watch and the Texas Trial Lawyers Association are actively fighting against laws that limit consumer protections.
- Attend Public Hearings: If the bill moves forward, public hearings will be held. Attending and providing testimony can help put pressure on lawmakers.
- Engage on Social Media: Spreading awareness and mobilizing others through social media campaigns can amplify the opposition’s voice.
Varghese Summersett: Advocating for Injury Victims
At Varghese Summersett, we fight tirelessly for injury victims against powerful insurance companies and corporations that attempt to limit their financial liability. HB 4806 is another example of how big business tries to tip the scales against ordinary Texans. Our firm is dedicated to ensuring injury victims receive the full and fair compensation they deserve.
If you or a loved one has been injured due to someone else’s negligence, don’t let unfair laws or insurance tactics stand in your way. Contact Varghese Summersett today at 817-203-2220 for a free consultation, and let us fight for you.
