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A BILL TO BE ENTITLED
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AN ACT
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relating to postjudgment interest on damages subject to Medicare |
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subrogation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 41, Civil Practice and Remedies Code, is |
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amended by adding Section 41.014 to read as follows: |
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Sec. 41.014. INTEREST ON DAMAGES SUBJECT TO MEDICARE |
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SUBROGATION. (a) Subject to this section, postjudgment interest |
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does not accrue on the unpaid balance of an award of damages to a |
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plaintiff attributable to any portion of the award to which the |
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United States has a subrogation right under 42 U.S.C. Section |
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1395y(b)(2)(B) before the defendant receives a recovery demand |
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letter issued by the Centers for Medicare and Medicaid Services or a |
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designated contractor under 42 C.F.R. Section 411.22. |
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(b) Postjudgment interest under this section does not |
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accrue if the defendant pays the unpaid balance before the 31st day |
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after the date the defendant receives the recovery demand letter. |
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(c) If the defendant appeals the award of damages, this |
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section does not apply. |
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(d) This section does not prevent the accrual of |
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postjudgment interest on any portion of an award to which the United |
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States does not have a subrogation right under 42 U.S.C. Section |
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1395y(b)(2)(B). |
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SECTION 2. The change in law made by this Act applies only |
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to an award of damages made on or after the effective date of this |
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Act. An award of damages made before the effective date of this Act |
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is governed by the law in effect immediately before that date, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |