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A BILL TO BE ENTITLED
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AN ACT
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relating to interest on damages subject to Medicare 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, interest does not accrue |
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on the unpaid balance of an award of damages to a plaintiff if the |
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United States has a subrogation right to the award under 42 U.S.C. |
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Section 1395y(b)(2)(B) before the defendant receives a recovery |
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demand letter issued by Centers for Medicare and Medicaid Services |
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or a designated contractor under 42 C.F.R. Section 411.22. |
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(b) Interest under this section does not accrue if the |
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defendant pays the unpaid balance before the 31st day after the date |
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the defendant receives the recovery demand letter. |
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(c) If the defendant appeals the award of damages, interest |
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on the award does not accrue before the appeal is final. |
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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. |