Doctors get chance to fight rate hikes

Friday, May 23, 2003 | 10:29 a.m.

CARSON CITY -- Gov. Kenny Guinn Thursday signed a bill to change insurance laws to help alleviate the state's medical malpractice crisis and to permit doctors to fight companies that want rate increases.

Senate Bill 122, sponsored by Senate Minority Leader Dina Titus, D-Las Vegas, was one of 33 bills approved by the governor.

The insurance bill permits doctors to intervene at a hearing before the state insurance commissioner when a company seeks to raise rates. The doctors would be able to testify at the hearing on the rate application.

Insurance companies, when asking for a rate increase, would be prohibited from seeking the recovery of any money the firm lost on bad investments or that was the result of criminal or fraudulent activities of a company executive.

The bill, which becomes effective Oct. 1, would also restrict companies from setting different insurance rates for obstetricians based on the number of babies they delivered unless actuarial evidence was presented to the commissioner.

Guinn also signed Senate Bill 237 to permit Clark County to go forward with a $2.7 billion highway and mass transit improvement plan over the next 25 years.

The bill, approved by voters in Clark County last November, calls for a one-quarter of a cent increase in the sales tax; an additional one cent per gallon on jet aviation fuel; and increased taxes or fees on developers.

Among other bills signed by the governor: