HB 4806 / SB 30 – Limiting Medical Damages and Noneconomic Compensation
HB 4806 / SB 30 – Limiting Medical Damages and Noneconomic Compensation
These are companion bills, meaning they’ve been introduced in both the House (HB 4806) and the Senate (SB 30) with nearly identical language. This is a strategic move to increase the odds of the legislation passing by allowing both chambers to review and push forward the same policy simultaneously.
What the bills would do:
These bills propose major changes to how damages are calculated in personal injury and wrongful death cases in Texas. If passed, they would:
Limit recovery of past and future medical expenses to the amount actually paid, not the amount billed by providers.
If no payment has been made—such as when treatment is provided under a Letter of Protection (LOP)—then the recoverable amount is capped at 150% of the benchmark rate.
What is a "capped benchmark"?
Under this bill, the capped benchmark refers to 150% of the median rate paid by private health insurance companies for the same service in the geographic area where treatment was provided. In other words, if your chiropractor billed $4,000 for treatment, but the typical local insurer pays $1,200 for the same care, then the most a jury could award is $1,800 (which is 150% of $1,200). The full $4,000 LOP charge would be disregarded unless the provider can prove it’s in line with insurance-paid rates.
Additionally, the bills:
Impose tougher requirements for proving pain, suffering, mental anguish, and other noneconomic losses.
Limit the evidence that plaintiffs can present to juries regarding their treatment and the necessity of care.
Who is pushing this bill: This legislation is supported by Texans for Lawsuit Reform (TLR), major insurance companies, chambers of commerce, and large employers. They argue these reforms will prevent excessive jury awards and lower the cost of doing business in Texas.
How it affects lawyers:
This could drastically reduce the value of claims where clients received medical care under LOPs, since the jury will only be allowed to consider the "paid" amount or the capped benchmark—not what providers actually charged. We’ll need to build stronger evidentiary support to justify treatment value, and expert testimony will become even more essential.
How it affects LOP providers:
LOP providers (like chiropractors, imaging centers, or orthopedic clinics) would face real risk that their billed charges won't be recoverable in court—regardless of the care provided. If the benchmark rate is significantly lower than what’s billed, defense attorneys will seize on that to minimize the settlement value or verdict. Some providers may stop accepting LOPs altogether, especially in soft-tissue injury cases.
How it affects injured people:
People who are uninsured or underinsured—many of whom rely on LOPs to get medical care—would be hit hardest. If their provider charges $10,000 for necessary treatment, but the benchmark only allows for $5,000 to be recovered, they could be personally liable for the difference. This would discourage many from seeking the treatment they need.
What’s next:
SB 30 has already passed through committee and is awaiting full debate in the Senate.
HB 4806 is still pending in the House Judiciary & Civil Jurisprudence Committee but is expected to move forward soon.
If both bills pass, they will be reconciled and sent to the Governor’s desk. We could see these become law by June or July 2025.
