83R3640 TJS-D
By: Sheets H.B. No. 658
A BILL TO BE ENTITLED
AN ACT
relating to 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, interest does not accrue
on the unpaid balance of an award of damages to a plaintiff if the
United States has a subrogation right to the award under 42 U.S.C.
Section 1395y(b)(2)(B) before the defendant receives a recovery
demand letter issued by Centers for Medicare and Medicaid Services
or a designated contractor under 42 C.F.R. Section 411.22.
(b) 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, interest
on the award does not accrue before the appeal is final.
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.