What happened: On May 7, SB 30/HB 4806, common-sense legislation addressing lawsuit abuse in Texas was considered in the House Judiciary & Civil Jurisprudence (JCJ) Committee. The hearing followed Senate passage of the bill in mid-April.
In their own words: Public testimony underscored the “shadow system” that exists between certain personal injury lawyers and certain medical providers, leading victims into a “web of exploitation” designed to inflate medical damages.
- Dee Soule, Texas resident and medical billing expert: “The current system in Texas allows for trial attorneys and medical providers to use victims as ATMs, and I believe that is unacceptable. The truth is, I’m angry, and it needs to stop. HB 4806 is one step in the right direction.”
- Soule also testified: “Victims are often pulled into a shadow system where charges are inflated, relationships are undisclosed, and medical billing is manipulated to support lawsuits, not patient care.”
- Another witness stated: “Bills for routine procedures can go from $1,500 to $150,000 due to the referral network between medical providers and personal injury attorneys.”
TLR Thoughts: Witness after witness called attention to a pattern of abuse in Texas’s personal injury system—one where inflated medical bills and hidden referral arrangements enrich a few at the expense of real victims and honest consumers. SB 30/HB 4806 includes meaningful reforms that will close loopholes encouraging manipulation of the system at the expense of Texas small and medium-sized businesses, consumers and courts.
Read the full press release here.