Committee advances PCS to ease insurance requirements for community‑based care agencies amid fierce debate

Representative Chamberlain told the committee PCS for HB 529 seeks to address an insurance crisis affecting community‑based care (CBC) lead agencies and their subcontractors by removing the statutory requirement that agencies maintain specified liability coverage at levels that are becoming unavailable or unaffordable. "On average... the CBCs are paying over $500,000 per agency for professional liability insurance," the sponsor said, and she argued skyrocketing premiums have shifted dollars away from services for children.

The PCS would remove the statutory insurance mandate (while not prohibiting agencies from obtaining coverage) and would maintain or set statutory caps on damages: the sponsor explained the text limits economic damages to $2,000,000 per liability claim, $200,000 per automobile claim, and non‑economic damages to $400,000 per claim, and preserves the claims‑bill process as a backstop.

Opponents, including Heather Rosenberg (former children's ombudsman) and foster‑care advocates, urged the committee to reject the PCS, arguing that removing insurance requirements reduces accountability and leaves harmed children without remedies. Rosenberg recounted systemic oversight failures and said civil liability is a crucial lever to drive safety improvements in the system. Supporters argued the statutory requirements are forcing providers out of the market and would reduce placement capacity for children in care.

After extensive testimony and debate balancing provider solvency and child protection concerns, the committee reported PCS for HB 529 favorably with 11 yeas and 3 nays. The sponsor and members said the PCS is a first step addressing a market failure and that further refinements, data collection and safeguards should follow in subsequent committee work.