Bill Addresses Interest on Medicare Subrogation [HB 658]

Rep. Kenneth Sheets (R-Dallas) has filed legislation that would suspend the accrual of interest on damages that are subject to a Medicare subrogation claim by the U.S. Government. Under HB 658, interest does not accrue on an unpaid balance of damages to which Medicare has a subrogation right before the defendant receives a recovery demand letter issued by the Centers of Medicare and Medicaid Services or a designated contractor. Interest does not accrue after the defendant receives the demand if the defendant pays the balance within 31 days of receipt of the demand. If the defendant appeals the damages award, interest does not accrue until the appeal is finally determined.