Panel advances bill to modernize birth‑injury fund, citing oversight gaps and safeguards after embezzlement

Del. Tran presented HB 1007 as a modernization and accountability package for the Commonwealth’s Birth‑Related Neurological Injury Compensation Program (commonly called the birth injury fund). The bill would authorize electronic filing, set response deadlines, clarify participation and discovery rules, remove a requirement that families exhaust Medicaid or other public benefits before accessing fund benefits, codify medically necessary benefits, expand covered family advocates, raise grief award caps for infant deaths shortly after birth, and strengthen oversight by adding family representatives to the board and requiring surety bonding.

Anne Jones and Donna Ross Dantes, lawyers representing children who apply to the program, told the committee the statute is outdated, has created opportunities for litigation and oversight gaps, and noted a prior $7,000,000 embezzlement that underscored the need for stronger fiduciary controls and board meeting requirements. "There was an oversight and therefore there was a $7,000,000 embezzlement," Jones said, arguing the bill places guardrails to prevent similar future abuses.

Hospital associations and family members testified in support, saying the bill preserves the program’s purpose while improving timeliness, fairness, and transparency without expanding eligibility or increasing liability for providers. Del. Tran said the legislation is not intended to increase liabilities or costs to insurers or the Commonwealth; rather it seeks to align statute with program practice and to ensure predictable remedies and deadlines for families.

The subcommittee considered line amendments and voted to report the bill with amendments on a recorded vote, moving it forward with the changes discussed in the hearing.