Houston Daily

State Rep. Hickland: New testimony exposes ‘piece of the puzzle' in rising insurance costs
Government
Webp hickland
Hillary Hickland, State Representative for Texas House District 55 | https://house.texas.gov/members/4520/biography

Hillary Hickland, State Representative for Texas House District 55, said that testimony revealing trial lawyers' manipulation of medical costs explains the rise in insurance premiums and these lawyers' vigorous opposition to reform.

"Why are insurance premiums rising," said Hickland, State Representative (HD-55). "Here's a piece of the puzzle. Now does it make sense why the trial lawyers are fighting this so hard?"

Protecting American Consumers Together (PACT) has announced the launch of its second Texas television advertisement, "Powerhouse," as part of a significant TV and digital campaign aimed at ending lawsuit abuse. The advertisement underscores how personal injury lawyers exploit the legal system for profit, increasing everyday costs for Texas families, burdening small businesses, and threatening the state's economic strength. It portrays lawsuit abuse as a hidden tax, citing studies that indicate it costs the average Texas household over $5,500 annually. The ad calls on lawmakers to enact commonsense reforms to protect consumers and reduce costs, aligning with public opinion favoring legislative action.


Rep. Hickland's May 7 statement | X.com

According to a new study by The Perryman Group, commissioned by Citizens Against Lawsuit Abuse (CALA), Texans pay an average of $1,725 annually in higher prices due to excessive lawsuits and substantial court awards—surpassing the national average of $1,666. This "lawsuit tax" increases the cost of goods, insurance, and services, affecting both consumers and businesses. From 2009-2023, Texas led the nation with 207 "nuclear verdicts" (awards exceeding $10 million), totaling more than $45 billion. These lawsuits have resulted in $33.6 billion in annual direct costs and over 450,000 lost jobs across the state. Business leaders and CALA officials are advocating for reforms to limit inflated medical bills, enhance billing transparency, and ensure fair noneconomic damage awards.

A study from the U.S. Chamber Institute for Legal Reform indicates that Texas ranks among the top five states for nuclear verdicts. Between 2013 and 2022, there were 130 personal injury and wrongful death cases resulting in $16 billion in awards. The study noted that "anchoring" tactics—where attorneys suggest arbitrary high-dollar damage amounts—significantly contributed to inflating jury awards. An example cited involved a $39 million verdict in an auto accident case after a plaintiff’s lawyer proposed a symbolic per-mile damage figure; this was later overturned by the Texas Supreme Court due to improper tactics. Such excessive awards contribute to higher insurance premiums and consumer costs while undermining fairness in the legal system.

The American Tort Reform Association (ATRA) has released a report showing that Texas is a major hub for legal services advertising. Dallas and Houston rank among the top ten U.S. media markets for total spending on these ads in 2024. Dallas saw approximately $69.8 million spent on 622,212 ads while Houston accounted for over $56.6 million on more than 411,000 ads. These figures reflect a broader national increase in trial lawyer advertising expenditure which reached $2.5 billion across the U.S. last year—more than double what pizza restaurants spent.

State Representative Hillary Hickland is a ninth-generation Texan who took office in January representing House District 55 which includes central Bell County. A graduate of Baylor University and Boston University, Hickland is also active as a community leader fluent in Spanish participating in organizations such as Central Texas Republican Women and Daughters of the Republic of Texas.