Dr. Mark Hanson is a retired optometrist who practiced medicine for over 30 in Arlington, Texas. He argues Texas can — and should — do the same in the upcoming 2027 Legislative Session.
Texas Insider Report: AUSTIN, Texas – Some 20 years ago, Texas led the nation in Tort Reform, and the results have spoken for themselves ever since. But trial lawyers have found a new workaround by inflating medical bills to drive up jury verdicts and their own legal fees. As a result, Texas now leads the country in "nuclear verdicts," with 23 awards exceeding $10 million in just 2024 alone.
Earlier this decade, the State of Florida took on the issue and fixed the problem during its 2023 Legislative Session. Two years later, the nation's major insurers are filing for rate cuts in Florida — and USAA announced $1 billion in rebates to its Florida customers.
Dr. Mark Hanson is a retired optometrist who practiced medicine for over 30 in Arlington, Texas. He argues Texas can — and should — do the same in the upcoming 2027 Legislative Session.
Texas Got Medical Malpractice Reform Right Before, and Should Finish the Job by Taking on Medical Billing Fraud
By Dr. Mark R. Hanson
Texas Insider Report: AUSTIN, Texas – More than 20 years ago, Texas fixed a problem that was plaguing the healthcare industry: runaway medical malpractice lawsuits. These lawsuits were so common in Texas, that doctors’ and hospitals’ malpractice premiums had become unaffordable and were driving many doctors out of the state.
Fewer doctors meant it became harder to afford the cost of providing care. And, having fewer doctors meant that access to quality healthcare in Texas was falling.
To ensure that Texans across the state have access to high-quality medical care, lawmakers passed a law dealing with malpractice lawsuits.
The law worked.
Malpractice claims against Texas doctors fell by nearly two-thirds within a few years, and average malpractice insurance premiums fell by roughly 46 percent.
More than 18,000 additional doctors began practicing in Texas.
Today, there is a new form of abuse taking place in our courts that is directly tied to rising costs:
medical billing fraud.
Here's how it works.
When a health care provider injures a patient through negligence, the patient sues for damages. At trial, the injured person presents evidence on the value of past medical care and a "life care plan" estimating future care costs.
Plaintiffs' lawyers often inflate these figures to maximize the case's value. In cases involving injured children, claimed future care costs can reach millions of dollars.
No one disputes that a person injured through medical negligence is entitled to be fully reimbursed for the true value of the health care expenses required to address the negligent act. The key is ensuring reforms include safeguards to prevent inflated claims, so costs are based on actual, verifiable expenses rather than manipulated figures.
This way, Texas can protect patients' rights while reducing fraud and lowering costs.
Texas has tried to fix this, but it repeatedly fails because deep-pocketed trial lawyers have shown a willingness to mislead jurors and the public about the value of health care services.
Why? Because higher jury verdicts increase the lawyers’ cut of settlements, which incentivizes them to cheat.
When trial courts refuse to act as a check on these lawyers, the inflated bills reach juries in Texas, which award outsized verdicts to align with the inflated billing.
It is no coincidence that Texas led every state in the nation with 23 "nuclear verdicts" (jury awards of $10 million or more) in 2024 — more than California or any other state.
While Texas faltered, other states led, and the results from other states prove that when you crack down on medical billing fraud, consumers — like Texas families — win.
In 2023, Florida passed a law requiring juries to see what was actually paid for medical care, rather than the billed amount. Because Florida made the billed number match the real one:
- Two years later, insurance companies started cutting rates — GEICO, Progressive, and State Farm all filed for rate cuts.
- By 2025, Florida's top auto insurers had filed for an average statewide rate decrease of 6.5%
- In June, USAA, from San Antonio, announced $1 billion in rebates and rate cuts to Florida customers.
Texas can take control and lower healthcare costs without sacrificing malpractice reform or access to care, just as Florida has done.
It's time to end inflated billing and ensure fair, market-based numbers for all Texans.
Dr. Mark R. Hanson is a retired optometrist (O.D.) who practiced and worked for more than three decades in health care in Arlington, Texas.
