Another fundamental difference between Texas law and S. 1052 relates to the treatment of employers. When the Patients' Bill of Rights was debated in Texas, the legislature acted decisively to protect employers--and their employees--from costly litigation by prohibiting lawsuits against employers. . . . Conversely, S. 1052 invites frequent litigation against employers by subjecting them to liability under a vague ``direct participation'' standard. Under this standard, employers can be held liable for ``the actual making of [a] decision or the actual exercise of control in making [a] decision.'' Because the question whether an employer ``exercised control'' in a decision is inherently fact-based, employers will be forced to defend at trial in virtually every case alleging a wrongful denial decision. Moreover, the interpretation of ``direct participation'' will differ in the various state courts, forcing employers to comply with different standards throughout the country. This treatment of employers is a radical departure from the approach adopted in Texas and will create incentives for employers to drop employee health coverage entirely, further increasing the number of uninsured.
Editor's note · Context
Discussing employer protections in relation to the Patients' Bill of Rights and comparing Texas law to S. 1052.
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