83R12081 TJS-F
By: Sheets H.B. No. 658
Substitute the following for H.B. No. 658:
By: Farney C.S.H.B. No. 658
A BILL TO BE ENTITLED
AN ACT
relating to postjudgment interest on damages subject to Medicare
subrogation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 41, Civil Practice and Remedies Code, is
amended by adding Section 41.014 to read as follows:
Sec. 41.014. INTEREST ON DAMAGES SUBJECT TO MEDICARE
SUBROGATION. (a) Subject to this section, postjudgment interest
does not accrue on the unpaid balance of an award of damages to a
plaintiff attributable to any portion of the award to which the
United States has a subrogation right under 42 U.S.C. Section
1395y(b)(2)(B) before the defendant receives a recovery demand
letter issued by the Centers for Medicare and Medicaid Services or a
designated contractor under 42 C.F.R. Section 411.22.
(b) Postjudgment interest under this section does not
accrue if the defendant pays the unpaid balance before the 31st day
after the date the defendant receives the recovery demand letter.
(c) If the defendant appeals the award of damages, this
section does not apply.
(d) This section does not prevent the accrual of
postjudgment interest on any portion of an award to which the United
States does not have a subrogation right under 42 U.S.C. Section
1395y(b)(2)(B).
SECTION 2. The change in law made by this Act applies only
to an award of damages made on or after the effective date of this
Act. An award of damages made before the effective date of this Act
is governed by the law in effect immediately before that date, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2013.