73R9473 CLG-F By Gallego H.B. No. 2728 Substitute the following for H.B. No. 2728: By McCall C.S.H.B. No. 2728 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the settlement of certain claims involving Medicaid 1-3 recipients; providing a criminal penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 32.033, Human Resources Code, is amended 1-6 by adding Subsections (i) and (j) to read as follows: 1-7 (i) Without the written authorization of the commissioner, a 1-8 person who applies for or receives medical assistance under this 1-9 chapter may not settle or resolve a claim: 1-10 (1) for damages caused by an act or failure to act 1-11 that the applicant or recipient is required to report under 1-12 Subsection (b); or 1-13 (2) under private insurance coverage that the 1-14 applicant or recipient is required to report under Subsection (b). 1-15 (j) A person commits an offense if the person knowingly or 1-16 intentionally violates Subsection (i). An offense under this 1-17 subsection is a Class B misdemeanor. 1-18 SECTION 2. Subchapter B, Chapter 32, Human Resources Code, 1-19 is amended by adding Section 32.0335 to read as follows: 1-20 Sec. 32.0335. THIRD PARTY SETTLEMENT OR RESOLUTION OF 1-21 CERTAIN CLAIMS. (a) Without the written authorization of the 1-22 commissioner, a third party, including an insurer or an attorney or 1-23 other agent of a third party, may not participate in the settlement 2-1 or resolution of a claim made by a person or on the person's behalf 2-2 if the third party, attorney, or agent actually knows or should 2-3 have known that: 2-4 (1) the person has applied for or receives medical 2-5 assistance under this chapter; and 2-6 (2) the department has a right of subrogation in 2-7 relation to the claim. 2-8 (b) A settlement or resolution of a claim made by a third 2-9 party or on behalf of a third party in violation of this section is 2-10 void and does not release a third party from liability to the 2-11 department for a claim that is assigned to the department under 2-12 Section 32.033. 2-13 (c) An insurer, or an attorney or other agent of a third 2-14 party, who pays money to a person in violation of this section is 2-15 liable to the department for the full amount of the department's 2-16 right of recovery under Section 32.033(e). 2-17 (d) A person commits an offense if the person knowingly or 2-18 intentionally violates this section. An offense under this 2-19 section is a Class B misdemeanor. 2-20 (e) This section applies to a claim described by Section 2-21 32.033(i). 2-22 SECTION 3. (a) This Act take effect September 1, 1993. 2-23 (b) The change in law made by this Act applies only to a 2-24 cause of action or right of recovery that accrues on or after the 2-25 effective date of this Act. A cause of action or right of recovery 3-1 that accrued before the effective date of this Act is covered by 3-2 the law in effect at the time the cause of action or right of 3-3 recovery accrued, and the former law is continued in effect for 3-4 that purpose. 3-5 SECTION 4. The importance of this legislation and the 3-6 crowded condition of the calendars in both houses create an 3-7 emergency and an imperative public necessity that the 3-8 constitutional rule requiring bills to be read on three several 3-9 days in each house be suspended, and this rule is hereby suspended.