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Senate amends medical arbitration law, makes single arbitrator default unless parties agree otherwise
Summary
Senate Bill 245 — removing mandatory arbitration and clarifying arbitration procedures — was amended on the floor to make a single arbitrator the default unless parties agree to a three‑member panel; the Gladwell amendment was adopted after extended debate about access, cost, and fairness.
Senators on Feb. 23 debated and amended SB245, a bill amending medical dispute resolution rules to eliminate mandatory arbitration and clarify procedures for mediation and arbitrator selection.
Sponsor Senator Blackcomb described SB245 as removing mandatory arbitration and allowing mediation before arbitration, permitting either a single arbitrator or a three‑member panel. Senator Gladwell moved Amendment No. 3 to change the bill’s default so that a single arbitrator would be used unless both parties agreed to a three‑member panel. Gladwell explained the change as an access and cost issue: “If an injured party is willing to say, I’m willing to place in the hands of one arbitrator… then that injured party ought to have the right to an arbitrator and the associated reduction in cost,” he said.
Proponents of the three‑member panel argued it provides checks and balances and improves fairness. Senator Blackham said three‑member panels add impartiality and are not likely to impose meaningful extra costs on consumers; Senator Helliwell and others cited data and voice mail handouts from groups including AARP and the Utah Medical Insurance Association that were used to support positions on cost and outcomes.
The body adopted the Gladwell amendment by voice vote; the amendment text changes the default arbitration format from three arbitrators to a single arbitrator unless otherwise agreed by the parties. The bill as amended was circled for further consideration and will return for additional floor action.
Next steps: The amendment requires administrative steps to implement AAA/arbiter selection procedures and may shift cost dynamics for injured parties and providers; the Senate left the bill amended and circled for later floor action.
